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Date: November 8, 2011

Bulletin Number: 1101

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Subject

2011-2012 Deficit Reduction Plan for Employees Represented by the Public Employees Federation (PEF)

Purpose

To inform agencies of new earnings codes and procedures for processing the 2011-2012 PEF Deficit Reduction Plan.

Affected Employees

Employees in bargaining unit 05 – Professional, Scientific and Technical Services Unit (PS&T)

Excludes employees with an hourly rate less than $7.57.

Background

Pursuant to Section 7 of Part A of Chapter 491 of the Laws of 2011 and the Division of the Budget Bulletin B-1196 issued November 8, 2011, a plan has been established to reduce the compensation of any employee within the purview of the agreement between the State of New York and the Public Employees Federation.

Effective
Date(s)

The 2011-2012 PEF Deficit Reduction Plan will commence Institution Pay Period 15L/16C and Administration Pay Period 16L/17C and will continue through Institution Pay Period 24L/25C and Administration Pay Period 25L/26C.

Attachment A provides a breakdown of the PEF Deficit Reduction Plan period by check date and includes the pay period number, pay period begin date and pay period end date for each pay type.

New Earnings
Codes

OSC has created new earnings codes to process the PEF Deficit Reduction Plan.

Additional Pay
Earnings Codes


Description

   

D1P

11-12 PEF DRP -4.198%
(Retro Code – R1P)

D1T

11-12 PEF 21P DRP -3.381%
(Retro Code – R1T)


Time Entry
Earnings Codes

 

Description

   

D2P

11-12 PEF DRP Oth -4.198%

D2T

11-12 PEF 21P DRP Oth -3.381%

Automatic Set up
of the D1P/D1T Additional Pay
Record - OSC

In Institution Pay Period 15L/16C and Administration Pay Period 16L/17C, OSC will insert a row on the Additional Pay page for employees who meet ALL of the following criteria:

  • Employee is in an eligible bargaining unit as defined above on the last day of the above pay period.
  • Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on the last day of the above pay period.
  • Employee was not in an ineligible bargaining unit (one not defined above) with an Employee Status of Active or Leave with Pay any time during the above pay period.

Exception:  The Additional Pay record will not be created automatically for employees in a composite position (identified by Increment Code 2222) since the system cannot determine if the hidden position is in an eligible bargaining unit.

The inserted row on the Additional Pay page will be set up as follows:

Earnings Code:

D1P – if the employee’s Pay Basis Code is other than 21P on the last day of the above pay period

 

D1T – if the employee’s Pay Basis Code is 21P on the last day of the above pay period

Effective Date:

First day the employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay in the above pay period; otherwise, first day the employee is in an eligible bargaining unit with an Employee Status of Leave of Absence in the above pay period

Earnings:

The field will be left blank; the system will calculate the D1P/D1T amount based on the eligible earnings

End Date:

Pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C

Manual Set up
of the D1P/D1T Additional Pay
Record - Agency

Employees Not Meeting Automatic Set Up Criteria

Agencies are responsible for creating the Additional Pay record for those employees who do not meet the criteria in the Automatic Set Up section but who are in an eligible bargaining unit with an Employee Status of Active or Leave with Pay any time during Institution Pay Period 15L/16C or Administration Pay Period 16L/17C.

The Additional Pay record should be set up as follows:

Earnings Code:

D1P – if the employee’s Pay Basis Code is other than 21P

 

D1T – if the employee’s Pay Basis Code is 21P

Effective Date:

First day the employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay in the above pay period

Earnings:

The field must be left blank; the system will calculate the D1P/D1T amount based on the eligible earnings

End Date:

Last day the employee is in an eligible bargaining unit; if employee remains in an eligible bargaining unit at the end of the above pay period, use the pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C

Newly Eligible Employees

Agencies are also responsible for creating the Additional Pay record for employees who are hired, rehired, concurrently hired or transferred into an eligible bargaining unit with an Employee Status of Active or Leave with Pay after the initial pay period through Institution Pay Period 24L/25C or Administration Pay Period 25L/26C.  Agencies must also create or restart the Additional Pay record if an employee returns from a Leave of Absence to an eligible bargaining unit with an Employee Status of Active or Leave with Pay during the PEF Deficit Reduction Plan period.

The Additional Pay record should be set up as follows:

Earnings Code:

D1P – if the employee’s Pay Basis Code is other than 21P

 

D1T – if the employee’s Pay Basis Code is 21P

Effective Date:

Date of the hire, rehire, concurrent hire, transfer or return from leave transaction into an eligible bargaining unit with an Employee Status of Active or Leave with Pay within the PEF Deficit Reduction Plan period

Earnings:

The field must be left blank; the system will calculate the D1P/D1T amount based on the eligible earnings

End Date:

Pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C

Note:  An Additional Pay record using Earnings Code D1P/D1T should only be created for an employee in a composite position (identified by Increment Code 2222) if the bargaining unit of each position making up the composite position is eligible as defined above.  Otherwise, the agency should submit the deficit reduction amount each pay period using the Time Entry deficit reduction code (see Processing Adjustments section).

Calculating the Deficit Reduction Amount – D1P/D1T
(Additional Pay)

Each pay period, the system will calculate the deficit reduction amount for employees with a D1P/D1T record that was active any time during the pay period being processed regardless of whether the employee was in an eligible bargaining unit.  The system will total all monies for the following earnings codes where the earnings end date falls within the pay period dates being processed and multiply the result by the percentage associated with the active PEF Deficit Reduction Plan Additional Pay record(s).

Earnings Code

Description

CON

Contract Pay Regular Earnings

FEE

Fee

FRC

Fee – Retirement Credit

GEO

Geographic Pay

IPF

Inconvenience Pay – Full

IPP

Inconvenience Pay – Part

LEP

Non-Taxable Lieu of Expense

LMH

Location Mid-Hudson

LOC

Location Pay

LOM

Location Pay – Other Amount

MSP

Military Stipend Payment

RGH

Regular Pay Hourly Employee

RGO

Regular Pay Override

RGS

Regular Pay Salary Employee

SCO

Salary Withholding Override

SDF

Shift Differential

SWB

Salary Withholding Biwkly/Hrly

SWC

Salary Withholding Contract Pa

SWO

Salary Withholding Override

SWP

Salary Withholding Program

TSP

Military Training Stipend

As with other Additional Pay Earnings Codes, it may be necessary to submit an adjustment in order to calculate the correct deficit reduction amount.

Employees
No Longer Subject
to the PEF Deficit Reduction Plan

If an employee transfers into a bargaining unit that is not subject to the PEF Deficit Reduction Plan, the agency must insert a row on the Additional Pay page for Earnings Code D1P/D1T and insert an End Date equal to the last date the employee is in an eligible bargaining unit.

Processing Adjustments – D2P/D2T
(Time Entry)

If an employee is in both an eligible and ineligible bargaining unit during a pay period and has a D1P/D1T record active any time during the same pay period, the system will calculate the deficit reduction amount on all eligible earnings where the earnings end date falls within the pay period dates being processed.  It is the agency’s responsibility to determine the monies that should not have been included in the deficit reduction amount, calculate the adjustment amount and submit a positive adjustment using Earnings Code D2P/D2T.

In addition, the system will not include any monies paid using one of the eligible earnings codes listed above for earnings in an eligible bargaining unit where the earnings end date is prior to the pay period begin date for the pay period being processed.  It is the agency’s responsibility to determine those monies that should have been included in the deficit reduction amount and submit a negative adjustment using Earnings Code D2P/D2T.

As mentioned above, an Additional Pay record using Earnings Code D1P/D1T should not be created for an employee in a composite position (identified by Increment Code 2222) if the bargaining unit of each position making up the composite position is not eligible as defined above.  Therefore, it is the agency’s responsibility to total the portion of monies paid each pay period for any of the eligible earnings codes listed above that are earned during the deficit reduction period in an eligible bargaining unit, calculate the deficit reduction amount and submit a transaction using Earnings Code D2P/D2T.

A Time Entry transaction should be submitted as follows:

Earnings Begin Date:

First earnings begin date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed

Earnings End Date:

Last earnings end date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed

Earn Code:

D2P – if the monies were earned while the Additional Pay Earnings code D1P was active

 

D2T – if the monies were earned while the Additional Pay Earnings Code D1T was active

Amount:

Total the earnings for all of the earnings codes listed above earned during the deficit reduction period that are included in the pay period being processed and multiply by the appropriate percentage

Control-D Report NPAY729

In order to assist agencies in identifying monies that should be included in the adjustment calculation, OSC created Control-D report NPAY729 (Earnings Requiring an Adjustment to the Deficit Reduction Calculation).  This report identifies employees who have earnings in Paycheck Data for one or more of the earnings codes listed above provided:

  • The earnings end date is less than the pay period begin date associated with the check date on the report; and
  • The earnings end date falls within the deficit reduction period; and
  • The employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay on the earnings end date for the specified earnings code.

The report is available the Thursday after the payroll period is confirmed.

The report is sorted by Employee Name and then by Earnings Begin Date and Earnings Code.  Fields on the report include Emplid, Employee Record Number, Employee Name, Earnings Code, Earnings Begin Date, Earnings End Date, Hours, Earnings Amount and Addl DRP and Description.

Processing Deficit Reduction –
D2P/D2T
(Time Entry)

Monies earned during the PEF Deficit Reduction Period while in an eligible bargaining unit using any of the earnings codes listed below are also subject to the deficit reduction but will not be calculated automatically.

Earnings Code

Description

ACN

Adjustmt for Contract Earning

AGP

Adj Geographic Pay

AIF

Adj Inconvenience Pay Full

AIP

Adj Inconvenience Pay Part

ALP

Adj Location Pay

AMS

Adjust Military Stipend

AS5

Addtl Sft Comp – Hourly

ASD

Adj Shift Diff

BAL

Balance of Contract

BSA

Back Salary Award

EC1

Extra Serv Clin Teacher Multi

EC2

Extra Serv Clin Teacher Single

EH1

Extra Serv Physician 76 Multi

EH2

Extra Serv Physician 76 Single

EP1

Extra Serv Physician Multi

EP2

Extra Serv Physician Single

ER1

Extra Serv Multi 7.5 HR

ER2

Extra Serv Multi 8 Hr

ER3

Extra Serv Multi OT

ER4

Extra Serv Single 7.5 HR

ER5

Extra Serv Single 8 HR

ER6

Extra Serv Single OT

ES1

Extra Service Hourly

ES2

Extra Service Amount

EXO

Extra Time Override

EXT

Extra Time

II1

Intermittent Inc & Shift 1

II2

Intermit Inc and Shift Evening

II3

Intermit Inc and Shift Night

IIF

Intermittent Inc Pay PEF

IIO

Intermittent Inc/Shift Overrid

IM1

Intermittent Inc Pay PEF-4 day

IP1

Intermittent Inc Pay-4Day

IP2

Intermittent Inc Pay-3Day

IP9

Intermittent Inc Pay PEF-3 day

IPS

Inc Pay Seasonal HRY

IS1

Intermittent Shift 1

IS2

Intermit Shift Diff Evening

IS3

Intermit Shift Diff Night

ISO

Intermittent Shift Override

IWO

Intermit Week-end Shift Ovr

LCA

Seasonal Loc Pay – 8 hour

LCB

Seas Loc Over 1520 – 8 hr.

LCC

Seasonal Loc Pay – 7.5 hrs.

LCD

Seas Loc Over 1425 – 7.5 hr.

LCE

Seas Loc Pay Mid Hudson-8 hr.

LCF

Seas LOC Mid Hud over 1520 8hr

LCG

Seasonal LOC Mid Hud – 7.5 hr.

LCH

Sea LOC Mid Hud ovr 1425-7.5hr

NHE

Nurses Evening Shift

NHN

Nurses Night Shift

NRO

Nurses Shift Override

RCN

Retro Contract Pay Adjustment

S3G

Step 3 Out-of-Title Grievance

SES

Summer Session

SSH

Summer School Hours

WPS

WC 60% Sup

WSP

Award/Supp Program Supplement

Therefore, it is the agency’s responsibility to total monies paid each pay period for any of these earnings codes that are earned during the deficit reduction period while in an eligible bargaining unit, calculate the deficit reduction amount and submit a Time Entry transaction as follows:

Earnings Begin Date:

First earnings begin date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed

Earnings End Date:

Last earnings end date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed

Earn Code:

D2P – if the monies were earned while the Additional Pay Earnings code D1P was active

 

D2T – if the monies were earned while the Additional Pay Earnings Code D1T was active

Amount:

Total the earnings for all of the earnings codes listed above earned during the deficit reduction period that are included in the pay period being processed and multiply by the appropriate percentage

If the agency subsequently reduces the monies earned for any of the earnings codes listed above during the deficit reduction period, a corresponding Deficit Reduction Time Entry transaction should also be submitted to reduce the deficit reduction amount.  The amount would be calculated by multiplying the adjustment to the earnings amount by the appropriate positive percentage.

Note:  Monies earned using Earnings Code BSA or S3G, monies earned using one of the adjustment codes and monies paid retroactively or as the result of a correction, should be handled on a case by case basis depending on whether the monies were earned during the deficit reduction period.

Control-D Report NPAY726

In order to assist agencies in identifying monies that should be included in the Deficit Reduction Time Entry calculation, OSC created Control-D report NPAY726 (Earnings Requiring a Manual Deficit Reduction Calculation).  This report identifies employees who have earnings in Paycheck Data for one or more of the earnings codes listed above provided:

  • The earnings end date falls within the deficit reduction period; and
  • The employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay on the earnings end date for the specified earnings code.

 The report is available the Thursday after the payroll period is confirmed.

The report is sorted by Employee Name and then by Earnings Begin Date and Earnings Code.  Fields on the report include Emplid, Employee Record Number, Employee Name, Earnings Code, Earnings Begin Date, Earnings End Date, Hours, Earnings Amount and Addl DRP and Description.

Earnings
Not Subject
to the Deficit Reduction

Monies earned during the deficit reduction period while in an eligible bargaining unit in any of the following categories are not subject to the deficit reduction.

Bonus Pay

Blind and Deaf Licensure Premium

Dual Certification Premium

Firearm Differential

Fringe Benefits

Hazardous Duty Pay

Holiday Pay

Longevity Payments

Lost Time

Lump Sum Payments for Accruals

Mentoring Premium Deaf and Blind

Overtime Pay

Overtime Meals

OGS Employee Recognition Award

Over 40 Cash Out

Recall Pay

Safety Incentive Differential Pay

Special Assignment to Duty Pay

Standby Pay

Statutory Workers’ Compensation Benefits

Unpaid Leave

Veterans’ Incentive Pay

Summary of
Agency Actions

Agencies are responsible for the following actions:

  • Create the D1P/D1T record for employees who do not meet the criteria in the Automatic Set Up section
  • Create the D1P/D1T record for newly eligible employees after the initial pay period
  • Create the D1P/D1T record for employees in a composite position where the bargaining unit of each position making up the composite position is eligible
  • Calculate and submit an D2P/D2T transaction for employees in a composite position where the bargaining unit of at least one position making up the composite position is not eligible
  • Calculate and submit a positive D2P/D2T transaction when monies earned in an ineligible position are included in the D1P/D1T calculation
  • Calculate and submit a negative D2P/D2T transaction when eligible monies are paid outside of the pay period being processed
  • Calculate and submit a negative D2P/D2T transaction for eligible monies paid using those earnings codes in the Processing Deficit Reduction – D2P/D2T section
  • Calculate and submit a positive D2P/D2T transaction when a reduction of the eligible monies included in the original D2P/D2T transaction occurs

Payroll Register
and Employee’s Paycheck/Advice

Where appropriate, the following earnings codes and the associated amounts will be displayed on the payroll register.  The earnings code description and amount will be displayed on the employee’s paycheck stub and/or direct deposit advice.

Earnings Code

Description

D1P

11-12 PEF DRP -4.198%

R1P

11-12 PEF Retro DRP -4.198%

D2P

11-12 PEF DRP Oth -4.198%

D1T

11-12 PEF 21P DRP -3.381%

R1T

11-12 PEF 21P RetroDRP -3.381%

D2T

11-12 PEF 21P DRP Oth -3.381%

Additional Information

Additional information and clarification may be provided in a subsequent payroll bulletin or posted on the PayServ Bulletin Board as it becomes available.

Questions

Questions regarding the PEF Deficit Reduction Plan should be directed to the applicable budget examiner at the Division of the Budget.

Questions regarding the accumulation and use of time as it relates to the PEF Deficit Reduction Plan should be directed to the Division of Staffing Services at the Department of Civil Service.

Questions regarding the Payroll processing of the PEF Deficit Reduction Plan should be directed to the Payroll Earnings mailbox.

Questions regarding the impact on taxes or deductions as it relates to the PEF Deficit Reduction Plan should be directed to the Payroll Deductions mailbox.