§ 601. Definitions. The following words and phrases as used in this
article shall have the following meanings unless a different meaning is
plainly required by the context:

a. "Active service" shall mean service while being paid on the payroll
of a participating employer provided, however, a leave of absence with
pay may be deemed active service pursuant to rules and regulations
adopted by a public retirement system of the state.

b. "Credited service" shall mean all service which has been credited
to a member pursuant to section six hundred nine of this article.

c. "Creditable service" is service which qualifies to be counted as
credited service pursuant to section six hundred nine of this article.

d. "Eligible beneficiary" for the purposes of section six hundred
seven of this article shall mean the following persons or classes of
persons in the order set forth:

1. A surviving spouse who has not renounced survivorship rights in a
separation agreement, until remarriage;

2. Surviving children until age twenty-five;

3. Dependent parents, determined under regulations promulgated by the
head of the retirement system;

4. Any other person who qualified as a dependent on the final federal
income tax return of the member or the return filed in the year
immediately preceding the year of death, until such person reaches
twenty-one years of age. In the event that a class of eligible
beneficiaries consists of more than one person, benefits shall be
divided equally among the persons in such class; and

5. With respect to members of the New York city employees' retirement
system or the board of education employees' retirement system of the
city of New York only, a person or persons whom the member shall have
nominated in the form of a written designation, duly acknowledged and
filed with the head of the retirement system for the purpose of section
six hundred six of this article.

6. Notwithstanding any other provisions of law, "eligible beneficiary"
of a New York city uniformed sanitation member shall mean the following
persons or classes of persons in the order set forth: (i) a surviving
spouse who has not renounced survivorship in a separation agreement,
(ii) surviving children until age twenty-five, (iii) dependent parents,
determined under regulations promulgated by the comptroller and (iv) any
other person who qualified as a dependent on the final federal income
tax return of the member or the return filed in the year immediately
preceding the year of death, until such person reaches twenty-one years
of age.

e. "Member" shall mean a member subject to the provisions of this
article.

f. "Head of the retirement system" shall mean the comptroller, with
respect to the state employees' retirement system and the retirement
board of the other public retirement systems of the state.

g. "Mandatory retirement age" shall mean age seventy.

h. "Normal retirement age" shall mean age sixty-two.

i. "Participating employer" shall mean a public employer who is
participating in a public retirement system of the state.

j. "Public employer" shall mean an employer who is eligible to
participate in a public retirement system of the state.

k. "Public retirement system of the state" shall mean the New York
state employees' retirement system, New York state teachers' retirement
system, New York city employees' retirement system (except with respect
to members qualified for participation in the uniformed transit police
force plan or housing police force plan), New York city teachers'
retirement system and the New York city board of education retirement
system.

l. (a) "Wages" shall mean regular compensation earned by and paid to a
member by a public employer, except that for members who first join the
New York state and local employees' retirement system or the New York
state teachers' retirement system on or after January first, two
thousand ten, overtime compensation paid in any year in excess of the
overtime ceiling, as defined by this subdivision, shall not be included
in the definition of wages.

(b) "Overtime compensation" shall mean, for purposes of this section,
compensation paid under any law or policy under which employees are paid
at a rate greater than their standard rate for additional hours worked
beyond those required, including compensation paid under section one
hundred thirty-four of the civil service law and section ninety of the
general municipal law.

(c) The "overtime ceiling" shall mean fifteen thousand dollars per
annum on January first, two thousand ten, and shall be increased by
three per cent each year thereafter, provided, however, that:

(i) for members who first become members of a public retirement system
of the state on or after April first, two thousand twelve, "overtime
ceiling" shall mean fifteen thousand dollars per annum on April first,
two thousand twelve, and shall be increased each year thereafter by a
percentage to be determined annually by reference to the consumer price
index (all urban consumers, CPI-U, U.S. city average, all items,
1982-84=100), published by the United States bureau of labor statistics,
for each applicable calendar year. Said percentage shall equal the
annual inflation as determined from the increase in the consumer price
index in the one year period ending on the December thirty-first
preceding the overtime ceiling adjustment effective on the ensuing April
first.

(ii) Commencing January first, two thousand eighteen, and each year
thereafter, the overtime ceiling percentage shall be increased by an
amount equal to the annual inflation as determined from the increase in
the consumer price index in the one year period ending on the September
thirtieth prior to the overtime ceiling adjustment effective on the
ensuing January first.

(d) For members who first join a public retirement system of the state
on or after April first, two thousand twelve, the following items shall
not be included in the definition of wages: 1. wages in excess of the
annual salary paid to the governor pursuant to section three of article
four of the state constitution, 2. lump sum payments for deferred
compensation, sick leave, accumulated vacation or other credits for time
not worked, 3. any form of termination pay, 4. any additional
compensation paid in anticipation of retirement, and 5. in the case of
employees who receive wages from three or more employers in a twelve
month period, the wages paid by the third and each additional employer.

m. "New York city revised plan member" shall mean a member of the New
York city employees' retirement system, the New York city teachers'
retirement system or the board of education retirement system of the
city of New York who becomes subject to the provisions of this article
on or after April first, two thousand twelve.