Bill > S06639

This bill amends the retirement and social security law to increase the limitation on overtime compensation that can be included in final average salary calculations from 15% to 30% for Tier 5 and Tier 6 members of the New York State and Local Police and Fire Retirement System (NYSLPFRS). Specifically, the bill changes how overtime compensation is calculated when determining retirement benefits, allowing a higher percentage of an employee's annual wages to be considered as part of their final average salary. Overtime compensation is defined as pay received at a rate higher than standard wages for additional hours worked beyond required hours, such as compensation under civil service and municipal law provisions. The fiscal note indicates this change would increase the present value of benefits by approximately $611 million, with annual contribution rates expected to increase by 1.2% for participating employers, which translates to about $10 million for the state and $45 million for local participating employers. The bill is intended to provide more comprehensive retirement benefit calculations that better reflect workers' total compensation, particularly for public safety employees who often work significant overtime.

Budget and Finance, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S6639