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Date: December 20, 2011 - AMENDED

Bulletin Number: 1109

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Subject

April 2011 Management Confidential (M/C) Longevity Lump Sum Payments (LLS)

Purpose

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

Background

Chapter 491 of the Laws of 2011 and Division of the Budget Bulletin B-1197 provide for Longevity Lump Sum payments effective April 2011 in the amount of $1,250 or $2,500 based on the eligibility criteria below.

Affected Employees

Longevity eligible employees with an increment code of 1976 – 2006 in Bargaining Units 06, 46, 66, and 79.

Effective Date(s) and Payment Date(s)

Payment is effective April 1, 2011 and will be processed in a separate check dated December 15, 2011 (Institution Pay Period 17L) or December 21, 2011 (Administration Pay Period 18L).  There will be no direct deposit for this payment.


Eligibility

An employee meeting the  following criteria is eligible for payment:

  • Is on the payroll March 31, 2011 (Active, on Paid Leave of Absence, or a Military Stipend Leave) in a graded or NS equated to grade (603-617) position in an eligible bargaining unit; and
  • As of March 31, 2011, has five (5) or more or ten (10) or more years of continuous service* at a base annual salary equal to or greater than the Job Rate for the employee’s current grade; and
  • A withhold was not approved by the Division of the Budget; and
  • Is in an annual position in an eligible bargaining unit and Active, on Paid Leave of Absence, or a Military Stipend Leave or Workers Compensation at the time of payment [the last day of Institution Pay Period 17L (11/30/11) or Administration 18L (12/7/11)].

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

Employees are not eligible to receive more than one payment in a fiscal year.

Withholds
If the agency determines that an M/C employee’s automatic Longevity Lump Sum payment should be withheld, the agency must request approval through the Division of the Budget per Bulletin B-1197.  Agencies may submit a Job Action Request using the Action/Reason code of DTA/PWH (Data Change/ Performance Advance Withheld) and enter Increment Code 7777 to withhold a Longevity Lump Sum payment.  If the agency does not submit a transaction to withhold the payment, OSC will enter the transaction.

The following employees will become eligible for the LLS payment upon processing of Performance Advances effective Pay Period 1L:

An employee occupying a position that has been previously reallocated, whose salary was equal to or greater than the Job rate of the lower grade and whose salary upon application of the April 2011 Performance Advance reaches the Job Rate of the reallocated grade is entitled to the Job Rate Credit of the lower grade.

  • The Increment Code of an employee receiving the April 2011 Performance Advance will be automatically updated from 0001 to 2011.
  • These employees will not receive an automatic LLS payment; therefore, the agency must submit the transactions to make the payments and update the increment codes after the Performance Advances are processed.  For instructions, see the section below entitled “Agency Actions – Payments to Employees Not Paid Automatically.”

The following employees will become eligible for the LLS payment during 2011-2012:

  • An employee who otherwise qualifies but is on an approved Leave of Absence without Pay including Workers’ Compensation Leave or on a preferred list on March 31, 2011 and who returns from such leave to an eligible position between April 1, 2011 and March 31, 2012 is eligible for the payment.  There is no minimum service requirement following the employee’s return to active payroll status.  The effective date of payment is the effective date the employee returns to the payroll.
  • An employee who otherwise qualifies but is terminated on or before the time of payment [the last day of Institution Pay Period 17L (11/30/11) or Administration 18L (12/7/11)] and is rehired in an eligible position between Institution Pay Period 18L (12/1/11) or Administration 19L (12/8/11) and March 31, 2012.
  • Demotion after March 31, 2011 – An employee who is not eligible for the payment becomes eligible if the employee returns to a lower graded position between April 1, 2011 and March 31, 2012, provided the employee otherwise would have been eligible if the employee had been in the lower graded position on March 31, 2011 and remained in the lower graded position for at least six (6) pay periods; and
  • The promotion was temporary and the employee has been reinstated to their 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; or
    • Voluntarily during the probationary period; or
    • As a result of failure of a probationary period.

The agency should request the LLS payment after the completion of six (6) full pay periods in the lower grade using the same effective date as the demotion.

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 an LLS payment in the lower grade.

OSC Actions

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

  • Employees who are full-time on March 31, 2011 or full-time employees who are on a Paid Leave of Absence, Military Stipend Leave or on a Voluntary Reduction in Work Schedule (VRWS) receive the full payment amount.

Note:  For employees on the Voluntary Reduction in Work Schedule program, the agency must verify that the Full/Part Time Indicator on the Job Data/Job Information page is “Voluntary.”

  • Employees who are part-time on March 31, 2011 receive a prorated payment based on the employee’s part-time percentage on March 31, 2011.
  • Part-time employees who are on a Paid Leave of Absence or Military Stipend Leave on March 31, 2011 receive a prorated amount based on the employee’s regular part-time percentage prior to the leave.

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

Earnings Code:                               LLS 
Effective Date:                                4/01/2011
OT Effective Date:                           4/01/2011
Annual Additional Earnings:             Payment Amount
Earn End Date:                               3/31/2012

Agency Actions – Payments to Employees Not Paid Automatically

To pay an employee after the automatic payment has been processed, enter the following information on the Additional Pay page:

Earnings Code:                                  LLS 
Effective Date:                                   Enter eligibility date*
OT Effective Date:                              Same as effective date           
Annual Additional Earnings:             Payment Amount
Earn End Date:                                  3/31/2012

*For example:  If an Institution agency enters a transaction in Pay Period 20L for an employee who returned to the payroll on December 29, 2011, the effective date is 12/29/2011.  If an Administration agency enters a transaction in Pay Period 21L for an employee who returned to the payroll on January 5, 2012, the effective dated is 1/05/2012,

Note:  Since this payment is retroactive, the above instruction includes any employee who did not meet the eligibility criteria on 03/31/2011 but who has become eligible, for any reason as described in the Eligibility Criteria section, effective 4/01/2011 through automatic processing (Institution Pay Period 17L or Administration Pay Period18L). 

To Correct an Increment Code
If the employee did not receive an automatic LLS payment because the increment code was incorrect, the agency must, in addition to submitting the LLS payment, submit a Job Action Request using the Action/Reason code of DTA/CIC (Data Change/Correct Increment Code).  The appropriate increment code must be entered in the Increment Code field.

Employee Becomes Eligible for Payment Due to Demotion
If an employee was ineligible on 3/31/2011 and becomes eligible in 2011-2012 due to demotion as explained above, the agency should enter a comment on the General Comments page verifying the employees is eligible for LLS based on the reason the demotion occurred.

Automatic Retroactive Processing

Overtime

The LLS payment is included in the calculation of overtime compensation effective 4/01/2011-3/31/2012.  OSC will automatically calculate retroactive adjustments to overtime for overtime worked between 4/01/2011 through automatic processing (Institution Pay Period 17L or Administration Pay Period 18L). 

Undeliverable Checks

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).

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 check.


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 2011 Longevity Lump Sum payment will be included in the calculation of overtime earned from April 1, 2011 through March 31, 2012.

Control-D Reports and Preparation for Payment

Prior to the automatic processing, the following report will be available:

NPAY756 Longevity Lump Sum (LLS) Eligibility Listing
This report is a preliminary listing of employees eligible for the LLS payment based on the information in effect on 3/31/2011 as of the date the report is run.  It is possible there are employees on the eligibility listing who are not eligible to receive payment because they did not meet the criteria on the last day of Institution Pay Period 17L (11/30/11) or Administration Pay Period 18L(12/7/11) as described above.  The report will be available November 16, 2011.

Corrections to the preliminary listing should be submitted on the Correction Sheet.  The form may be duplicated if additional copies are needed.)  This form must be used to:

  • Delete employees who should not appear on the listing
    • Employees who may appear on agency recommended withholding submitted to the Division of the Budget.  Note: Requires their approval in order for OSC to take action.
  • Add employees who do not appear on the listing, such as:
    • Eligible employees in NS positions where the equated grade does not appear on the Position Data page.  Agencies must submit documentation of the salary equation with the Correction Sheet.
    • Eligible employees who are in composite positions (identified by Increment Code 2222).
    • Employees whose positions were downward reallocated and were eligible based on the prior grade (identified by Increment Code 0069).
  • Change incorrect information pertaining to an employee appearing on the listing.

Corrections should be submitted as soon as possible and must be received no later than November 29, 2011.  Please fax corrections to (518) 474-2601 or (518) 402-4949 and send an email to the Payroll Earnings mailbox to inform the Earnings Section that a correction has been faxed.

After the automatic processing is completed, the following report will be available:

NPAY770 One Time Payment Report

This report identifies all employees who received the automatic LLS payment.


Taxes and Deductions

This payment is subject to income and employment withholding taxes. If there is an additional tax amount in the employee’s tax data record, the additional tax will be deducted from both the regular paycheck and the separate paycheck.

Deductions will be taken for retirement normal contributions, garnishments and Federal levies.

Payroll Register and Employee’s Paycheck

The Earnings Code LLS and the amount will be displayed on the payroll register.  The earnings description, 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 about the LLS payment may be directed to the Payroll Earnings mailbox.

Questions about Deductions may be directed to the Payroll Deductions mailbox.