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Bill

S 6639

Relates to the limitation of overtime compensation in final average salary calculations

2025 Regular Session Introduced by Joe Addabbo and 9 co-sponsors

Limits overtime pay in final average salary for retirement benefits, potentially reducing pensions for some public-sector retirees; affects pension admins and FAS calculations.

REPORTED AND COMMITTED TO FINANCE
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Bill Summary · S 6639

Legislative Summary: S 6639 – Relates to the limitation of overtime compensation in final average salary calculations

Overview

  • Bill number: S 6639
  • Title/purpose (as stated): Relates to the limitation of overtime compensation in final average salary calculations.
  • Status: REPORTED AND COMMITTED TO FINANCE (as of April 8, 2025)
  • Introduced: March 19, 2025
  • Classification: Bill (pension/retirement-related)

What the bill would do

  • The bill would limit how overtime compensation can be used in calculating the final average salary (FAS) for retirement benefits.
  • In practical terms, it aims to restrict or cap the inclusion of overtime pay when determining the final average salary that is used to calculate a retiree’s pension benefit.
  • This change would affect how a portion of an employee’s compensation is translated into pension calculations, potentially reducing the FAS used for some retirees.

Note: The specific mechanisms (e.g., whether overtime is entirely excluded, capped, or otherwise adjusted) and any applicable timeframes or transitional rules are not provided in the summary materials available. The actual statutory text would detail these provisions and any implementation rules.

Who would be affected

  • Public sector employees whose retirement benefits are calculated using a final average salary formula, including current and future retirees who are covered by the relevant pension system.
  • Administrative and human resources entities responsible for calculating pension benefits in participating agencies.

Legislative history and status

  • Introduced: March 19, 2025
  • Referrals: Referred to Civil Service and Pensions (March 19, 2025)
  • Actions:
    • March 19, 2025 – Referred to Civil Service and Pensions (duplicate entry in the record)
    • April 8, 2025 – Reported and committed to Finance (duplicate entry in the record)
  • The bill has a companion in the Assembly (A 8574) and several related bills in prior sessions, indicating ongoing interest in pension calculation reforms.

Sponsors

  • Primary sponsor: Andrew Gounardes
  • Cosponsors include: Robert Jackson, Patrick M. Gallivan, Christopher Ryan, Lea Webb, Shelley Mayer, Jake Ashby, Samra Brouk, Joseph P. Addabbo Jr., Steve Rhoads

Related legislation

  • Related bills from prior sessions: S 6133, S 6370, S 6343
  • Companion: A 8574

Potential fiscal and policy impact (high-level)

  • If overtime is limited in FAS calculations, some retirees may receive smaller pension benefits, which could reduce long-term pension liabilities for the state or create a need for adjusted funding under the pension system.
  • Administrative processes for calculating FAS may be adjusted, with new rules determining what portion of overtime qualifies for inclusion.
  • The actual impact would depend on the precise provisions adopted in the final text (scope, applicability, transition rules, and any grandfathering provisions).

Next steps

  • Await the full text to confirm exact provisions, effective dates, and any transition or grandfathering rules.
  • If advanced, the bill would proceed through committees, potential floor votes, and negotiations before enactment or amendment.

If you’d like, I can compare S 6639 with its related bills (S 6133, S 6370, S 6343, and A 8574) to highlight alignment or differences in approach to final average salary and overtime treatment.

Compiled from official sources — confirm details with the bill’s official record.

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