New York Assembly Bill A08352

New York 2025-2026 Regular Session

• Introduced: 5/13/25
• Refer: 5/13/25

Caption

Sets the increase to the overtime ceiling as a fixed percentage.

Impact

The implementation of this bill is projected to significantly influence the financial obligations of both state and local employers within the retirement system. It is estimated that the changes could increase the present value of benefits by approximately $290 million. This cost burden will be shared between the State of New York and local participating employers, who will need to adjust their annual contributions to cover the increased benefits. The adjustment of billing rates to account for these changes signifies a long-term financial impact on the budgeting for public employers.

Summary

Bill A08352 seeks to amend the New York State and Local Employees' Retirement System (NYSLERS) by adjusting the parameters for calculating the overtime ceiling for members who join the retirement system after April 1, 2012. Under the proposed legislation, the overtime ceiling percentage increase will be the greater of three percent per year or the annual inflation rate as determined by the Consumer Price Index (CPI-U) for the previous year. This change aims to provide a more responsive and equitable adjustment linked to inflation, especially for newer members of the retirement system.

Contention

Discussion around Bill A08352 has highlighted a division among stakeholders regarding its financial implications. Proponents argue that linking the overtime ceiling to inflation will protect the purchasing power of retirement benefits for employees. However, opponents raise concerns about the potential strain this could impose on local budgets and the requirements for increased contributions from municipalities. Such financial pressures could affect localized funding for other essential services. As of now, this bill has gained traction within the committee discussions, reflecting varying perspectives on the balance between fair compensation for workers and the fiscal responsibilities of local governments.