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Date: February 28, 2006 Bulletin Number: 623
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Subject

April 2006 PS&T Longevity Lump Sum Payment (LLS)

Purpose

To inform agencies of OSC’s automatic processing of the LLS and to provide instructions for payments not processed automatically.

Affected Employees

Longevity-eligible employees in BU05 with an Increment Code of 1976 - 2001 or 0010.

Background

Chapter 419 of the Laws of 2004, which implements the negotiated agreement between the State and the Public Employees Federation (PEF), provides for a Longevity Lump Sum payment of $1,250 or $2,500.

Effective Dates

Payment will be processed in a separate check dated April 19, 2006 (Administration) and April 27, 2006 (Institution). There will be no direct deposit for this payment.

Eligible PEF Employees

Employees in graded positions (Grades 001-037) and NS (Grade 600) positions which are equated to grade, are eligible for the payment if the employee:

  • Is on the payroll on March 31, 2006 (Active or on Leave with Partial Pay or on Workers’ Compensation or Military Leave) in a position in the PS&T bargaining unit; and
  • Has five (5) or more or ten (10) or more years of continuous service* at a salary equal to or above the job rate, or the maximum of the grade of their position on March 31, 2006; and
  • Did not receive an “Unsatisfactory” rating during the rating period ending between January 1 and December 31, 2005. Employees who were not rated during the period will receive the payment.

*Continuous service, as used in determining eligibility for the Longevity Lump Sum payment, is paid service (including part-time annual-salaried service and Sick Leave at Half Pay) or time on Workers’ Compensation Leave or Military Leave without Pay.

The following will become eligible for the LLS payment upon processing of Performance Advances in Pay Period #1L 2006 (Institution) and Pay Period #26L 2006 (Administration):

An employee occupying a position that has been reallocated in recent years, whose salary was equal to or above the job rate of the lower grade, and whose salary, upon application of the April 1, 2006 Performance Advance, reaches the job rate of the reallocated grade, is entitled to the job rate credit of the lower grade. Such an employee has an increment Code 0001; OSC will automatically update the Increment Code to 2006. The employee will not receive an automatic payment; therefore, the agency must submit a transaction in Pay Period 2L (Institution) or Pay Period 1L (Administration) to make the payment and update the increment code. For instructions, see the section below entitled “Agency Actions – Payments to Employees Not Paid Automatically.”

The following will become eligible for the LLS payment during 2006-2007:

  • Employees who otherwise qualify but are on an approved leave of absence without pay or employees on the Military Stipend or on a preferred list on March 31, 2006 and who return from such leave between April 1, 2006 and March 31, 2007 are eligible for the payment. There is no minimum service requirement following the employee’s return to Active payroll status.

  • An employee who is not eligible for the payment becomes eligible if the employee returns to a lower graded position between April 1, 2006 and March 31, 2007, provided the employee otherwise would have been eligible if the employee had been in the lower graded position on March 31, 2006 and remains in the lower graded position for at least six (6) pay periods; and

    • The promotion was temporary and the employee has been reinstated to the employee’s previous position or has been appointed to another lower graded qualifying position; or
    • The promotion was permanent, but the demotion occurred:
      • in lieu of layoff;
      • voluntarily during the probationary period; or
      • as a result of failure of a probationary period.


The agency should request the Longevity Lump Sum payment after the completion of six (6) full pay periods in the lower grade.

An employee demoted as a result of a disciplinary action or who takes a voluntary demotion from a permanent position after the completion of a probationary period in the higher grade is not eligible for a Longevity Lump Sum payment in the lower grade.

OSC Actions - Automatic Processing

OSC will automatically insert a row on the Additional Pay page to make the payment using the Earnings Code LLS. The Longevity Lump Sum payment is $1,250 for five (5) years at the job rate and $2,500 for ten (10) years at job rate or a prorated amount, as described below:

  • Employees who are part-time on March 31, 2006 receive a prorated payment based upon their part-time percentage on March 31, 2006.
  • Part-time employees who are on Leave with Partial Pay, Workers’ Compensation Leave or Military Leave on March 31, 2006 receive a prorated payment based upon their regular part-time percentage prior to the leave.

Employees who are full time on March 31, 2006 or full time employees who are on Leave with Partial Pay, Workers’ Compensation Leave, Military Leave, or employees on a Voluntary Reduction in Work Schedule (VRWS) receive the full payment.

Note: For employees under the Voluntary Reduction Program, the agency must verify that the Full/Part Time Indicator on Job Data 2 is “Voluntary.”

The Additional Pay Page will be populated for eligible employees with the following:

Earnings Code LLS
Effective Date 04/01/06
OT Effective Date 04/01/06
Annual Additional Earnings Payment Amount
Earn End Date 03/31/07

Agency Actions- Payments to Employees Not Paid Automatically

To pay an employee after the automatic payment has been processed, use the Additional Pay page as follows:

Earnings Code LLS
Effective Date Enter eligibility date*
OT Effective Date Same as effective date
Annual Additional Earnings Payment Amount
Earn End Date 03/31/07

*If an Institution agency enters a transaction in Pay Period 2L for an employee who returned to the payroll on April 13, 2006, the effective date should be 04/13/06. If an Administration agency enters a transaction in Pay Period 1L for an employee who returned to the payroll on April 6, 2006, the date should be 04/07/06.

If the employee did not receive an automatic Longevity Lump Sum payment because the Increment Code was incorrect, the agency must, in addition to submitting the LLS earnings, request the Action/Reason of DTA/CIC (Data Change/Correct Increment Code) on the Job Action Request page. The appropriate increment code must be entered in the Increment Code field.

Retirement and Overtime Calculation Information

The LLS is a one-time, lump sum payment which is included as salary for retirement purposes and in the calculation of overtime compensation (refer to “Overtime Compensation”, Part III, Page 1 of the OSC Salary Manual). The 2006 Longevity Lump Sum payment will be included in the calculation of overtime earned from April 1, 2006 through March 31, 2007 for all agencies.

Control-D and Preparation for Payment

Prior to the automatic processing, NPAY756, PS&T Longevity Eligibility Listing, will be available for agency review on March 1, 2006. This report is a preliminary listing of employees eligible for the Longevity Lump Sum payment as of March 1, 2006.

Agencies should review this listing carefully, paying particular attention to employees who are ineligible due to an “Unsatisfactory” rating between January 1 and December 31, 2005.

Corrections to the preliminary listing should be submitted on the Correction Sheet which is linked to this Bulletin. (The form may be duplicated if additional copies are needed.) This form must be used to add employees who do not appear on the listing, to delete employees who should not appear on the listing, and to change incorrect information pertaining to an employee appearing on the listing. Do not add employees whose eligibility will change due to a transaction that will be processed prior to Pay Period 26, 2006 (Administration) or Pay Period 1, 2006 (Institution).

The Correction Sheet should also be used to add eligible employees in NS positions that are equated to grades. If the equated grade is not listed on the Budget Certificate, agencies must submit documentation of the salary equation along with the Correction Sheet.

Corrections should be submitted as soon as possible and must be received no later than March 24, 2006. Please fax corrections to the Salary Determination Unit at (518) 474-2601.

After the automatic processing, NPAY770, One Time Payment Report, will identify all employees receiving the automatic payment.

Deductions & Withholding Taxes

Deductions will be taken for Federal, State, New York City and Yonkers City taxes, Social Security/Medicare, retirement normal contributions, garnishees and Federal levies. There will be no special tax calculations. For employees receiving the payment who have an additional tax amount in their record, the additional tax will also be included in the tax calculation for this payment.

Payroll Register and Employee’s Paycheck

The Earnings Code LLS and the amount will be displayed on the payroll register. The earnings description, PS&T Longevity LSP, and the amount will be printed on the employee’s paycheck.

This payment will be made in a separate check regardless of when paid. There will be no direct deposit for this payment. The separate check will be issued along with the employee’s regular paycheck or direct deposit advice for the check date submitted.

Questions

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