New York Assembly Bill A08652

New York 2025-2026 Regular Session

• Introduced: 5/22/25
• Refer: 5/22/25
• Report Pass: 6/16/25
• Refer: 6/16/25

Caption

Relates to the definition of overtime ceiling for members who first become members of a public retirement system of the state on or after April first, two thousand twelve.

Summary

This bill amends the Retirement and Social Security Law to change how the “overtime ceiling” is applied in calculating wages for certain public retirement system members. Specifically, it removes the overtime ceiling for Tier 6 New York City Transit Authority members in the 25-Year and Age 55 Retirement Program, so overtime earnings above the ceiling would count toward member contribution calculations and pension benefit determinations. The bill also makes a conforming change to the statutory definition of overtime ceiling for members who first joined a public retirement system on or after April 1, 2012, clarifying that the ceiling does not apply to pensions authorized under section 604-b of the law. In practical terms, the bill would increase the amount of overtime pay included in pensionable wages for the affected NYCTA Tier 6 members, which could raise both employee contributions and eventual pension benefits if the additional overtime increases final average salary. The fiscal note estimates a substantial long-term increase in employer contributions, all borne by the New York City Transit Authority, and notes that some current and future members could receive higher benefits as a result of the change. The bill takes effect immediately. The general sentiment reflected in the available legislative history is favorable. The Assembly Ways and Means Committee advanced the bill with only one no vote, and the Assembly Rules Committee also reported it favorably with unanimous support. That suggests broad committee-level support for the measure, likely because it addresses compensation treatment for a defined group of transit employees and retirement system members. The main point of contention is fiscal impact. The fiscal note projects significant increases in employer contributions over time and an increase in actuarial liabilities, which may raise concerns for the New York City Transit Authority and budget officials. The bill also has a narrower policy effect, benefiting a specific subset of Tier 6 transit workers rather than all public employees, which may be relevant to debates over pension costs, overtime treatment, and retirement equity.

Impact

The bill would amend the Retirement and Social Security Law’s wage definition and overtime ceiling rules as applied to certain public retirement system members, especially Tier 6 NYCTA members in the 25-Year and Age 55 Retirement Program. It would effectively allow overtime above the ceiling to be counted in pension-related wage calculations for that group, increasing both member contributions and potential pension benefits. The fiscal note indicates the resulting cost would fall on the New York City Transit Authority and would increase actuarial liabilities and employer contribution requirements.

Sentiment

Available committee votes indicate generally favorable sentiment toward the bill. The Assembly Ways and Means Committee reported it favorably with one dissenting vote, and the Assembly Rules Committee approved it unanimously. No committee transcript was provided, but the vote pattern suggests the measure has support among lawmakers despite its fiscal implications.

Contention

The primary area of contention is cost. The fiscal note projects sizable increases in employer contributions and unfunded accrued liability, which could concern the New York City Transit Authority, budget analysts, and lawmakers focused on pension affordability. A secondary point is policy scope: the bill benefits a targeted group of Tier 6 NYCTA workers, so debate may center on whether the pension treatment should be expanded, limited, or adjusted to balance worker compensation with long-term retirement system costs.