Purpose

The purpose of this bulletin is to notify agencies that the pensionable overtime earnings limit for Tier 6 New York City Employee Retirement System (7U), New York City Teachers Retirement System (7S), and New York City Education Board Retirement System (7T) for the 2020 plan year is $17,067.00.

Affected Employees

Tier 6 NYCERS, NYCTRS, and NYCBERS members eligible for overtime compensation and/or limited to the Governor’s Salary cap limit of $225,000 are affected by the overtime limit change.

All Tier 6 CUNY employees enrolled with NYCERS, NYCTRS, or NYCBERS are affected by the plan year change.

Background

The OT limit for Tier 6 began in State fiscal year 2012-13 at $15,000. The limit increases each year, and is based on the Consumer Price Index on December 31 of the previous year. In 2018, the maximum amount of OT that can be included in the final average salary of a Tier 6 member was changed from fiscal year to calendar year as a result of Chapter 368 of the Laws of 2018, which was signed into law on December 7, 2018. This year (2020) the OT limit is $17,067.00

Effective Date(s)

Institution Paychecks dated January 2, 2020

OSC Actions

OSC will update the Retirement Plans Table in PayServ to reflect the $17,067 pensionable overtime earnings limit with an effective date of January 1, 2020 for the plan year.

Agency Actions

CUNY should notify affected employees.

Questions

Questions regarding the calculation process can be directed to the Payroll Retirement mailbox.