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Date: February 10, 2010

Bulletin Number: 969

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Subject

Executive Voluntary Severance Program Payments – Second Installment

Purpose

To provide agencies with instructions for processing the second installment of the Voluntary Severance Program payment.

Affected Employees

Selected full time CSEA, PEF or M/C employees in Executive Branch agencies who elected to receive the Voluntary Severance Program payment in two installments.

Background

Pursuant to Budget Bulletin D-1125, the Executive Voluntary Severance Program was created to achieve recurring savings to the State Financial Plan.  The program was available to CSEA and PEF employees and employees in Management/Confidential positions.

The program offered a $20,000 incentive payment.  Employees participating in the program elected to receive the payment in one $20,000 or two equal $10,000 installments.  This bulletin covers the payment of the second installment.

Effective Date(s)

Payments will be made in separate checks dated 5/6/2010 (Institution) or 5/12/2010 (Administration).

Eligibility

In order to receive the second installment of $10,000 for the Voluntary Severance Payment program the employee must have met all of the criteria listed in Payroll Bulletin 925 and elected to receive the Voluntary Severance Program payment in two installments.

Agency Actions

Agencies must enter the following information on the Time Entry page to pay the second installment of the Voluntary Severance Program Payment.

Earn Code:

VSP

Earnings Begin Date:

Enter the date of the day after the Termination or Retirement effective date.

Earnings End Date:

Enter the same date as the Earnings Begin Date.

Amount:

$10,000

Agencies must enter a Time Entry comment indicating that they are paying the second installment of the VSP payment.

Overpayment Recovery

For any employee who, at the time of payment, has an overpayment set up in Additional Pay that has a Goal Amount and Goal Balance that are not equal, the system will recover as much of the overpayment as possible from the VSP payment.

Miscellaneous Payment Information

There is no direct deposit for this payment.


Deduction and Tax Withholding Information

The employee’s VSP payment is subject to taxes, garnishments and Federal levies.  Taxes will be calculated using the withholding information currently in the employee’s tax Data pages.

Questions

Questions about processing transactions may be directed to the Payroll Audit mailbox.

Questions about deductions may be directed to the Payroll Deduction mailbox.