Relates to the limitation of overtime compensation in final average salary calculations
Bill A 8574 amends the retirement and social security law concerning how overtime compensation is included in the calculation of a public employee's "final average salary." This bill increases the maximum amount of overtime compensation that can be counted towards this calculation. Specifically, it raises the exclusion threshold from 15% to 30% of a member's annual wages not classified as overtime. This change directly affects public employees whose retirement benefits are based on their final average salary, allowing a higher portion of their overtime earnings to be included in that calculation.
Bill status
in committee
1 of 4 stages cleared
Introduction
May 2025
Committee Review
Floor Vote
Governor
Introduced May 21, 2025
Last action Jan 28, 2026
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What changed between versions
A8574
→
A8574A
·
3 edits
MINOR
This bill amends the retirement law to increase the limit on overtime compensation included in final average salary calculations for Tier 5 and 6 members of the NYSLPFRS from 15% to 30%. The revision updates the fiscal impact estimates, reducing the projected cost increase for the state and local employers compared to the previous version. It also adjusts the legislative timeline and committee status to reflect the bill's progression through the Assembly.
Scope change
The bill's scope remains focused on Tier 5 and 6 members of the NYSLPFRS, but the financial projections for the cost of this benefit change were significantly revised downward.
FISCAL
The estimated increase in the present value of benefits was reduced from approximately $611 million to $331 million, lowering the projected annual contribution increase from 1.2% to 0.7% of billable salary.
TIMELINE
The bill's effective date and fiscal note date were updated to reflect the 2026 Legislative Session instead of the 2025 session.
REQUIREMENT
The committee status was updated to show the bill was discharged and amended, and the bill number was changed to A 8574--A.
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
4
Key actions
2
Committee
2
Amendments
2
Jan 28, 2026
Lower · Passed
PRINT NUMBER 8574A
lower
Jan 28, 2026
Lower · Passed
AMEND AND RECOMMIT TO GOVERNMENTAL EMPLOYEES
lower
Jan 7, 2026
Committee
REFERRED TO GOVERNMENTAL EMPLOYEES
lower
May 21, 2025
Committee
REFERRED TO GOVERNMENTAL EMPLOYEES
lower
1 primary · 3 co-sponsors
Sponsors
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