State Agencies Bulletin No. 474

Subject
Payment of Performance Advances and Longevity Payments for M/C (BU 06, 46, and 66)
Date Issued
April 2, 2004

Purpose

To define Performance Advances, Longevity Payments, Increment Codes and Anniversary Dates for employees designated Management Confidential.

Affected Employees

Graded employees designated Management Confidential (BU 06, 46 and 66).

Background

A Performance advance is an increase in salary paid to an eligible employee according to contractual agreement. An eligible employee will continue to receive Performance Advances until the employee has reached the Job Rate of the grade. All Management Confidential employees are rated and paid on April 1.

Longevity Payments are increases in salary paid to employees in Grades 603-617 who have a minimum of 5 or 10 years of service at the Job Rate of their current grade. There are two payments of $750.00. One payment is added after five (5) years at the Job Rate and the second payment is added after ten (10) years at the Job Rate. The resulting salary cannot exceed the Job Rate of the grade plus $1500.00.

Increment Codes and Anniversary Dates are essential to the automatic processing of Performance Advances by PayServ. They are also essential to the automatic processing of certain Longevity Payments.

The Increment Code is a numeric code that indicates whether an employee is due a Performance Advance or Longevity Payment in the next rating cycle and triggers PayServ to respond accordingly at the time of payment. Increment Codes must be reviewed and updated when an employee's pay or service status changes. An errant or missing Increment Code may result in mispayment or no payment.

Anniversary Dates indicate an employee's credited service date in their current grade.

FIS (Fixed Incremented Salary) Salary is a field used to enter a predetermined salary into the system. It is used in those instances where PayServ does not calculate a Performance Advance automatically. The FIS is used to pay employees who are appointed or promoted to a higher grade before receiving their next Performance Advance in the lower grade, and who are not eligible for a Performance Advance in the higher grade before the Performance Advance in the lower grade is paid. These employees are entitled to the benefit of the Performance Advance they would have received had they not been promoted.

The FIS salary is calculated by adding a Performance Advance to the last salary in the employee's prior grade, not exceeding the Job Rate, and then recalculating the promotion. If the resulting salary is above the current salary of the new grade, it is entered as the FIS Salary and will be paid on the employee's prior rating cycle date.

For graded employees, the Payroll System now requires Increment Codes for all Pay Change Requests, Position Requests (except Position Change/ Change Line), and Transfer Requests. For many transactions, including Reinstatement from Leaves, Anniversary Dates are likewise required. The maintenance of Increment Codes and Anniversary Dates is essential to payroll processing.

Specifics

All M/C employees are rated April 1 of each year.

Increment Codes are not needed for employees in Grade 700 or in Trainee titles (Grade 800).

Employees in NS Grade 600 positions that are equated to a grade should be tracked as graded employees to facilitate the payments of Performance Advances when approval is given to pay them. The Agency must always submit Performance Advances for NS employees. There are no automatic payments by the system.

If the Agency determines that an M/C employee's automatic Performance Advance should be withheld, the Agency must submit a Job Action Request using the Action/Reason of Data Chg/PWH (Data Change/Performance Advance Withheld) and enter the Increment Code 0003.

OSC Actions

The Payroll System uses the information present in the system to automatically process Performance Advances and Longevity payments. In Pay Period 1 of each Fiscal year, the system will automatically pay Performance Advances to employees whose record contains the proper Increment Code. The system will also update the salary of any employee with the required Increment Code and an FIS Salary in their record.

In Pay Period 1 of each Fiscal year, the system will automatically pay the Longevity Payments to employees who are at the Job Rate or higher of their current grades and have the proper corresponding Increment Codes.

Agency Actions

The Agency must enter the correct Increment Code and Anniversary Dates when submitting Pay Changes, Transfers, and Position Changes (with the exception of POS/CHL) for graded employees. This also applies to Reinstatement from Leaves where the Increment Code and/or Anniversary Date have been affected.

If necessary, Anniversary Dates may be updated on the Compensation Page when Reinstatements from Leaves are entered. For Hires and Concurrent Hires, the Anniversary Date defaults to the effective date, but must be repeated for the corresponding pay change. For Rehire transactions, the Anniversary Date defaults to the Anniversary Date in the system and must be updated, if necessary, on the corresponding Pay Change.

The Agency is responsible to correctly update the Increment Code and Anniversary Dates of employees as needed to insure proper payments. In order to correct an incorrect Increment Code, Anniversary Date or FIS salary, the Agency must submit a Job Request with an Action/Reason of DTA/CIC (Data Change/Change Increment Code, Anniversary Date, and FIS Salary).

The Agency must submit Longevity Payments that are earned at times other than Pay Period 1.

Eligibility

An employee is eligible for a Performance Advance if the employee has completed thirteen (13) full pay periods of service in the current grade or higher in each Fiscal year. Performance Advances are paid April 1 (Pay Period #1).

For Performance Advances, the employee's service period is adjusted by two weeks for each complete pay period of no pay status, sick leaves with pay, and service in a lower grade.

For Longevity Payment eligibility, the employee's service period is adjusted by two weeks for each complete pay period of no pay status and service in a lower grade.

Anniversary Dates

The Anniversary Date is the date of appointment in the current grade.

NOTE: Certain Management Confidential employees with service prior to October 1999 may have default anniversary dates in the system due to previous practice.

Increment Codes

0001 - Employee is eligible for a Performance Advance. The employee will have thirteen (13) complete pay periods of service in grade by April 1.

0003 - Employee is not eligible for a Performance Advance. The employee will not have thirteen (13) complete pay periods of service in grade by April 1, or the Agency has chosen to withhold Performance Advance.

0004 - Employee is due a Promotion Recalculation. Performance Advance is given in lower grade then the salary is recalculated. Fixed Incremented Salary (FIS) is required.

XXXX -Year of the Job Rate (end of Fiscal year).

2222 - Used for all Composite Salaries. All salary changes must be submitted by the Agency, except for contractual raises.Note: A composite salary is a combination of two or more graded salaries.

NOTE: Increment codes for Management Confidential were not used prior to October 1999.

Questions

Questions regarding this bulletin may be directed to the Salary Determination mailbox.