ALBANY — Overtime spiking and payday retirement after five years will soon be things of the past as a result of a sweeping public-pension tier signed into law yesterday by Gov. Paterson.

The Tier V retirement system will require public workers hired after Jan. 1 to work 10 full years before vesting and will slash the amount of overtime used to calculate final average salaries.

The bill — which excludes the system that covers city cops and firefighters — also raises the minimum age at which state and local workers can retire at full benefits from 55 to 62.