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Date: January 17, 2006 Bulletin Number: 619
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Subject

Restoration of 2003 Management Confidential (M/C) Performance Advances

Purpose

To inform agencies of the procedures for restoring the 2003 Management Confidential Performance Advances.

Background

Per Division of the Budget (DOB) Bulletin D-1117, Performance Advances that were withheld in 2003 for all Management Confidential employees in Bargaining Units 06, 46, 66, 18, 34, 52, 79, 96, 98 will be paid and salaries adjusted to the present for all affected employees.

Affected Employees

Statutory graded, non-statutory (N/S) equated-to-grade and non-equated employees and M/C trainees who were eligible to receive a Management Confidential Performance Advance(s) in FY 2003-04, and employees who were moved into a Management Confidential position from another bargaining unit where the salary reconstruction reflected withholding of the 2003 Performance Advance.

Effective Date(s)

3/27/03 for Administration Agencies; paychecks dated 3/22/06.
4/3/03 for Institution Agencies; paychecks dated 3/30/06.

Eligibility

The following guidelines apply in determining eligibility for restoration of the 2003 M/C Performance Advances:

M/C graded employees or N/S equated-to-grade employees must have had thirteen (13) complete pay periods of service during Fiscal Year 2002-03 in the same or a higher grade.

M/C N/S non-equated employees with a jurisdictional class of “Exempt” or “Pending Exempt” must have had thirteen (13) complete pay periods of service during Fiscal Year 2002-03 in their position.

Eligible employees must have been in Active status (Active, Paid Leave, Leave without Pay) on or after 3/27/03 (Administration) or 4/3/03 (Institution).

Graded and N/S equated-to-grade employees must have had salaries on 3/27/03 (Administration) or 4/3/03 (Institution) that were below the Job Rate of the 2002 Salary Chart for the corresponding grade.

N/S non-equated employees with a jurisdictional class of “Exempt” or “Pending Exempt” must have salaries on 3/27/03 (Administration) or 4/3/03 (Institution) that were below the maximum of the N/S Position Salary Range approved by DOB.

N/S non-equated employees with a jurisdictional class other than “Exempt” or “Pending Exempt” (e.g., competitive) and flat salaried employees are generally deemed ineligible for performance advances, including the 2003 restoration, without express DOB approval.

Correction Superintendents in grade 700 (Pay Basis Code CAL) in Job Code 007979 and Education Directors (Pay Basis Code CAL or 21P) in Job Code 004907 who otherwise meet the requirements are eligible for the Performance Advance.

Employees in grade 668 who otherwise meet the requirements are eligible for the Performance Advance.

Only employees with an Annual Pay Basis Code as of 3/27/03 (Administration) or 4/3/03 (Institution) are eligible for the Performance Advance with the exception of Correction Superintendents, Education Directors, and employees on paid Military Stipend (Pay Basis Code BIW).

Employees in M/C Traineeships are eligible for full restoration of all performance advances earned but not paid in the Traineeship during Fiscal Year 2003-04 as a result of the withholding action.

Employees who were demoted from another bargaining unit into an M/C position after 3/27/03 (Administration) or 4/3/03 (Institution) may be eligible for a salary reconstruction adding the 2003 Performance Advance.

Employees who were promoted from an M/C position into another bargaining unit between October 2002 and March 2003 and were due a promotion recalculation as indicated by Increment Code 0004 have previously received the salary increase effective 3/27/03 (Administration) or 4/3/03 (Institution) and are not eligible for further restoration.

Employees who moved from an N/S position to a graded M/C position after the effective date of the 2003 Performance Advance may be eligible for a salary reconstruction in either or both their N/S and graded positions.

Employees who moved from a graded or equated-to-grade position into an N/S position with a salary governed by a DOB approved plan (e.g., N/S non-equated, grade 668) after 3/27/03 (Administration) or 4/3/03 (Institution) are only eligible for salary increases due to restoration of the 2003 Performance Advance until the time of movement into an N/S position.

Otherwise eligible employees who Retired or were Terminated after 3/27/03 (Administration) or 4/3/03 (Institution) are due the Performance Advance through the time of separation, payable by the agency of last record.

Otherwise eligible employees who were on Military Leave are due the Performance Advance. OSC will update the employee’s record with the 2003 Performance Advance as well as review the employee's records to determine if a new or increased Military Stipend is due as a result of the salary reconstruction. Additionally, OSC will recalculate any Military Stipends in effect on 1/1/05 that may change due to the addition of the Performance Advance.

Employees who were on a Leave without Pay with the reason of WDL (Workers’ Comp Disability Leave), Short Term or Long Term Disability or on Sick Leave at half pay due to a Workers’ Compensation injury during Fiscal Year 2002-03 are due the Performance Advance on the effective date of the Performance Advance (3/27/03 [Administration] or 4/3/03 [Institution]).

DOB Actions

DOB-approved salary plans are required to facilitate payment of Performance Advances for employees in N/S non-equated positions (i.e., a valid grade equation has not been reported on the PayServ position data page). DOB-approved salary plans are also required for Correctional Superintendents and employees in grade 668 (refer to DOB Budget Bulletin D-1117).

To facilitate payment to these employees, OSC distributed listings to agencies of employees for whom DOB-approved salary plans were required. Agencies received these salary plan listings by December 21, 2005 and were instructed to complete salary plans for submission to DOB in accordance with DOB guidelines. See Attachment A for detailed instructions OSC provided to agencies with the salary plan listing distribution.

Completed salary plans must be submitted by each agency to DOB for budget examiner approval. DOB will forward approved salary plans to OSC authorizing the Performance Advances.

OSC Actions

OSC will process the Performance Advances using one of three (3) methods. In each case, rows will be inserted into the Job Data record to increase the salary, change the Increment Code, and enter a FIS salary, as needed. A new row will be inserted for each existing row in the employee’s job history that requires a change. Employee records will be updated using only one of the methods below (i.e., a record will not be updated through both automatic processing and manual entry). Please note that any additional job changes made to an employee record through the payment processing date may impact the payment method, such as a move from automatic to manual processing.

Automatic System Processing

OSC will systematically process Performance Advances for all eligible employees who were Active, on Paid Leave or on a Leave without Pay on April 2003, provided the following criteria are met:

  • Employees in statutory graded positions who have remained in the same grade continuously from 3/27/03 (Administration) or 4/3/03 (Institution) through the payroll system processing date.
  • Employees in N/S equated-to-grade positions who were equated to the same grade from 3/27/03 (Administration) or 4/3/03 (Institution) through the payroll system processing date.
  • Employees in N/S equated-to-grade positions who were equated to the same grade from 3/27/03 (Administration) or 4/3/03 (Institution) until the employee moved to an N/S non-equated position, or another exempt or non-exempt N/S position. When the employee moves, the processing will stop. Any changes to the salary in the new N/S position must be approved by DOB on a new Budget Director Approval (BDA). Any additional DOB changes will not be applied as part of this process (refer to DOB Budget Bulletin D-1117).

A row will be inserted for any eligible employee who was on a Leave without Pay on 3/27/03 (Administration) or 4/3/03 (Institution).

Employees who meet the above criteria but who are or will become Inactive, Terminated, Retired, or on a Leave of Absence before the processing date will be updated.

The Action/Reason of Pay Change/Man Con 2003 Perf Rest Auto (MCA) will be used for all rows inserted by the payroll system to increase salaries and update Increment Codes, as appropriate, to restore the 2003 M/C Performance Advance for these employees.

Salary Plan Loaded from DOB

Salary increases requiring a DOB-approved salary plan will be loaded directly into PayServ from the salary plan sent by DOB to OSC for the following employees:

  • Employees in N/S non-equated positions (grade 600) continuously from 3/27/03 (Administration) or 4/3/03 (Institution) through the salary plan load date.
  • Employees in grade 668 continuously from 3/27/03 (Administration) or 4/3/03 (Institution) through the salary plan load date.
  • Employees in Correction Superintendent positions continuously from 4/3/03 through the salary plan load date.

The files will update all rows for the affected employees when all rows match the information in the payroll system. The Action/Reason of Pay Change/Man Con 2003 Perf Rest Manual (MCM) will be used for all rows inserted by the payroll system.

Salary plans must be completed in the prescribed electronic format and key data elements must pass all validation tests to be loaded successfully (e.g., effective date and existing salary as of the effective date must match PayServ data; the plan must be submitted by the agency of last record; proposed salaries must be greater than existing salaries; etc.). Employees with invalid salary plan data will not be loaded from the DOB file but will be reviewed by the Salary Determination Unit and processed using the Manually Calculated Salary Load (see below).

DOB-approved salary plans are also required for certain employees where the salary increases require manual review and therefore cannot be included in the salary plan load. For example, employees who, after April 2003, move from an N/S non-equated position to a graded or an equated-to-grade position will not be loaded by this process, but handled through the manual process below which allows for a review of the complete salary record by OSC.

Manually Calculated Salary Load

Manual calculations to fully restore the 2003 M/C Performance Advances are required for many employees. In these cases, OSC’s Salary Determination Unit will prepare proposed salary increases and changes to Increment Code and FIS salary, as appropriate, for otherwise eligible employees meeting one or more of the criteria below. These calculations will then be forwarded to each agency for review and approval. After OSC and the agency agree on the salary calculations, the data will be loaded directly from the listing into PayServ. For most cases, it is anticipated that agencies will not be required to submit salary increases associated with the 2003 M/C Performance Advances through the PayServ Job Request panels.

These manually calculated salary loads will be required for otherwise eligible employees who, between 3/27/03 (Administration) or 4/3/03 (Institution) and the salary load date:

  • Were promoted to a position within M/C or another bargaining unit
  • Held a Traineeship
  • Were Budget Fellows (Job Code 001748)
  • Had a composite salary with an Increment Code of 2222
  • Were on a paid and unpaid Military Leave
  • Were demoted to a position within M/C or another bargaining unit
  • Moved from an N/S position (equated or non-equated) to a statutory graded position
  • Moved from a statutory graded position to an N/S position (equated or non-quated)
  • Moved between N/S equated and non-equated positions
  • Had a change in an equated grade
  • Held a position with an Increased Hiring Rate
  • Had a break in service of more than one (1) year
  • Were promoted to an M/C position between October 2002 and March 2003 and were due a FIS salary in lieu of a Performance Advance at the higher grade effective 3/27/03 (Administration) or 4/3/03 (Institution)
    Moved laterally to any position in a non-M/C bargaining unit
  • Had a salary below the Hiring Rate of the grade or equated grade for their position
  • Moved to a position with a Pay Basis Code other than Annual

The Action/Reason of Pay Change/Man Con 2003 Perf Rest Manual (MCM) will be used for all rows inserted into the payroll system.

Agencies will begin to receive listings of the manually calculated employee salary histories beginning January 17, 2006. All listings should be received by February 21, 2006. Agencies must complete their review of manually calculated salaries and submit any changes to OSC no later than March 3, 2006.
(Further instructions will be provided.)

Other Salary Adjustments Self-Reported by Agencies

OSC will provide agencies with instructions for other salary adjustments prompted by restoration of the 2003 M/C Performance Advances on a case-by-case basis. These circumstances may include:

  • N/S employees an agency has identified as eligible for a Performance Advance, but who were not included in the salary plan listings sent by OSC to the agency.
  • Employees who were demoted into a Management Confidential position from another bargaining unit where the salary reconstruction reflected removal of the 2003 Performance Advance.
  • Employees who were in a bargaining unit other than M/C at the start of Fiscal Year 2003-04 who then moved to an M/C Traineeship between April 2003 and October 2003.
OSC Reports

Agencies have or will receive the following reports before processing has been completed:

  • A listing of N/S employees who, according to OSC records, require a DOB-approved salary plan to facilitate payment of the 2003 M/C Performance Advances. Reports were distributed to agency payroll officers on December 20 and 21, 2005. See Attachment A for further details.
  • A listing of all potential automatic payments to graded and N/S equated-to-grade employees who have remained in the same grade. Agencies will be notified when the release date for this report is finalized.
  • A listing of employees who have remained in N/S non-equated positions, grade 668 positions, or Correction Superintendents for which salary plan data will be loaded directly into PayServ. Agencies will be notified when the release date for this report is finalized.
  • A listing of all manual calculations that, upon agency review and approval, will be loaded directly into PayServ. Distribution of these listings to agencies will begin January 17, 2006 and will be completed by February 21, 2006.

Note: Additional post-processing exception listings are being developed, and agencies will receive further information as soon as it becomes available.

Agency Actions

Agencies that have not already done so must complete salary plans for DOB approval for all N/S non-equated employees, grade 668 employees, and Correction Superintendents.

Agencies must review Manually Calculated Salary Histories and submit any corrections to OSC no later than March 3, 2006. Agencies must return the listings acknowledging their review even if there are not any discrepancies. (Further instructions will be provided.)

Agencies must review their records and report the following special circumstances to OSC as soon as possible:

  • Employees who were on a Workers’ Compensation Leave which was reported as a Short or Long Term Leave in Fiscal Year 2002-03 and do not appear to have the correct service must be reported to OSC. The system will not have record of the Workers’ Compensation Benefit and the employee must have the Performance Advance applied. Agencies must submit the appropriate Form C-8 to Viola Haizlip of OSC's Workers' Compensation Team for review. The Salary Determination Unit will review the salary and make any needed salary changes for the manual load
  • N/S employees identified by the agency as eligible for a Performance Advance per DOB Budget Bulletin D-1117, but who were not included in the salary plan listings sent by OSC to the agency must be added to the salary plan sent to DOB.
  • Employees who were demoted into an M/C position after 3/27/03 (Administration) or 4/3/03 (Institution) from another bargaining unit where the salary reconstruction reflected removal of the 2003 Performance Advance.
  • Otherwise eligible employees known by the agency who have transferred since April 2003 to a State entity not using the PayServ system (e.g., NYS Thruway Authority). The agency of last record should notify the new agency of the salary change.
  • Employees whose current employee status in PayServ is Terminated, Retired, or on a Leave without Pay who have since died should have the employee status changed to Deceased by entering a transaction in PayServ using Terminate/Deceased (DEC) with the date of death. Any paycheck issued to a deceased employee on record will then be correctly taxed with any applicable Federal or State taxes.
  • Employees who have moved to positions in agencies, such as UCS, SUNY unclassified positions, Legislative agencies, or other Pay Basis Codes such as Hourly rates, whose salary was based on the employee's M/C salary must be reviewed as the employee may be eligible for an adjustment to that salary due to the Performance Advance and salary reconstruction.

Agencies must review and correct, as necessary, post-processing exception listings once they are made available.

Retroactive Calculations

The payroll system will calculate the retroactive adjustment for all salary changes as well as for any earnings that are calculated by the system. Any earnings submitted using RGO (Regular Salary Override) or other override codes submitted as an amount must be adjusted manually by the agency. For any changes or additions to the retroactive adjustment, agencies must submit a transaction in the Time Entry Page using the Earnings Code AJR (Adjust Raise) with the effective dates of the adjustment. A comment in the Time Entry Comments field must be entered.

For employees who have had overpayments taken by using the Earnings Code OVP or by returning checks on an AC 230, their adjustment must be reviewed to determine whether the payment is correct.

Deduction Information

All general deductions for employees whose status is Terminated, Retired or Deceased will be automatically cancelled by OSC, with the exception of the following. No agency action is necessary.

Code

Narrative

410

Health Care Spending Account

420

NY Dependent Care Contribution

425

Repay State Loans/Debt

426

Higher Ed Repay State Loan

428

Dependent Care

433

Total Unemployment Ins Owed

500

Medicare Deficiency

501

Social Security Deficiency

608

ERS Arrears Before Tax

609

ERS Arrears After Tax

610

ERS Loans

GARNSH

Garnishments

HIATRG

Regular After Tax Health

HIATSP

Special After Tax Health Adj

HIBTRG

Regular Before Tax Health

HIBTSP

Special Before Tax Health Adj

As time permits, OSC will work with deduction agents and modify payroll deduction processing as appropriate.

Undeliverable Checks

All eligible Inactive employees may be eligible for a payment as a result of the salary adjustment. If the agency has made an effort to deliver the check to the employee but the check has been returned and is undeliverable, the agency should forward the check to the NYS Department of Tax and Finance, Division of Treasury per instructions in Payroll Bulletin No. 456.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P) and a Report of Check Exchange (Form AC 1476-P). Agencies may refer to Payroll Bulletin Nos. 609 and 610 for instructions on obtaining these forms.

For recipients of a previously deceased employee's payroll checks where a Next of Kin Affidavit and Report of Check Exchange forms have been submitted, OSC will accept a photocopy of these forms to process the exchange of the M/C retroactive Performance Advance payment.

Questions

Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.