S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5818
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 Introduced  by  M.  of  A.  FITZPATRICK -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   calculating pension benefits for public employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 75 of the retirement and  social  security  law  is
 amended by adding a new subdivision e to read as follows:
   E.  FOR  PURPOSES  OF  THIS TITLE, ALL FINAL AVERAGE SALARIES SHALL BE
 CALCULATED EXCLUSIVE OF ANY FORM OF OVERTIME COMPENSATION, UNUSED  VACA-
 TION TIME, UNUSED SICK LEAVE OR UNUSED PERSONAL TIME.
   §  2. Section 375 of the retirement and social security law is amended
 by adding a new subdivision e to read as follows:
   E. FOR PURPOSES OF THIS TITLE, ALL FINAL  AVERAGE  SALARIES  SHALL  BE
 CALCULATED  EXCLUSIVE OF ANY FORM OF OVERTIME COMPENSATION, UNUSED VACA-
 TION TIME, UNUSED SICK LEAVE OR UNUSED PERSONAL TIME.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   This  bill would reduce the retirement benefits for members who retire
 from the New York State and Local Employees' Retirement System (ERS) and
 the New York State and Local Police and Fire Retirement System (PFRS) on
 or after the effective date by requiring the exclusion of  any  form  of
 overtime compensation, unused vacation time, unused sick leave or unused
 personal time from the calculation of final average salary (FAS).
   If  enacted  into  law,  this  bill is likely to face a constitutional
 challenge based upon the guarantee that a member's benefits may  not  be
 diminished.
   In addition, if enacted there will be an administrative cost to imple-
 ment the provisions of this legislation.
   Summary of relevant resources:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08072-02-1

 A. 5818                             2
 
   Membership  data as of March 31, 2020 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2020  Report  of the Actuary and the 2020 Comprehensive Annual Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 Annual Report to the  Comptroller  on  Actuarial  Assumptions,  and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2020
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated  February  16,  2021, and intended for use only
 during the  2021  Legislative  Session,  is  Fiscal  Note  No.  2021-90,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.