New York Senate Bill S07670

New York 2025-2026 Regular Session

• Introduced: 4/28/25
• Refer: 4/28/25

Caption

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

Impact

This bill is expected to have significant fiscal implications for both the state and local employers participating in the NYSLERS. It is estimated that the increase in present value of benefits resulting from this change could reach approximately $290 million if enacted during the 2025 Legislative Session. The new funding obligations will be shared between the State of New York and local participating employers. Furthermore, the bill eliminates the appropriation requirement typically mandated by existing retirement and social security laws, which may simplify the implementation process.

Summary

Bill S07670, introduced in the New York State Senate, aims to modify the manner in which the overtime ceiling percentage for the New York State and Local Employees' Retirement System (NYSLERS) is adjusted. Specifically, the bill proposes that as of January 1, 2026, and each year thereafter, the overtime ceiling percentage increase shall be determined by the greater of either three percent or the annual inflation rate, based on the Consumer Price Index (CPI). This change primarily affects Tier 6 members who joined the retirement system on or after April 1, 2012, ensuring that their overtime ceiling adjustments are more closely tied to economic conditions.

Contention

Opponents of S07670 may argue that while the adjustment formula aims to provide more equitable benefits reflective of inflation, it poses a significant financial burden on state resources and local municipalities. The potential for increased costs associated with higher employer contributions may raise concerns among local budgets and service provisions. Proponents, however, argue that the bill protects the retirement future of public employees by ensuring that their benefits are not eroded by inflation, enhancing their economic security in retirement.