logo

Date: March 9, 2012

Bulletin Number: 1136

line

Subject

April 2012 Civil Service Employees Association (CSEA) 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.

Affected Employees

Longevity-eligible employees with an increment code of 1976-2007 in the following bargaining units:

  • Administrative Services
  • Operational Services
  • Institutional Services
  • Division of Military & Naval Affairs

BU02
BU03
BU04
BU47

Background

Chapter 491 of the Laws of 2011 implemented the agreement between the State and Civil Service Employees Association (CSEA) and provides for a Longevity Lump Sum payment effective April 2012.  The Longevity Lump Sum payment will be in the amount of $1,250 or $2,500 based on the eligibility criteria below.

Effective Date(s)

Payment will be processed in a separate check dated April 19, 2012 (Institution) and April 25, 2012 (Administration). There will be no direct deposit for this payment.

Eligibility – CSEA Employees

Employees in graded positions (Grades 001-025) and NS (Grade 600) positions which are equated to grade are eligible for the payment provided the employee:

  • Is on the payroll March 31, 2012 (Active, on Paid Leave of Absence, or a Military Stipend Leave) in a BU02, BU03, BU04 or BU47 position; and
  • As of March 31, 2012, 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
  • Did not receive an “Unsatisfactory” evaluation on their last rating date.  Employees who were not rated or not reported as “Unsatisfactory” during the period will receive the payment.

*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.

An employee who meets the continuous service eligibility requirement for payment in April 2012, but who receives an “Unsatisfactory” rating, will not receive a payment in April 2012 but will remain on the April payment cycle.

Once an employee meets the initial five year continuous service eligibility in April, they will stay on the April cycle.

The following employees will become eligible for the LLS payment upon processing of Performance Advances in 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 October 2011 or April 2012 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 who received the October 2011 Performance Advance was updated to 1110.
  • The Increment Code of an employee receiving the April 2012 Performance Advance will be automatically updated from 0001 to 2012.
  • These employees will not receive an automatic LLS payment; therefore, the agency must submit transactions in Pay Period 2L to make the payments and update the increment codes.  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 2012-2013:

  • 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, 2012 and who returns from such leave between April 1, 2012 and March 31, 2013 is eligible for the payment.  There is no minimum service requirement following the employee’s return to active payroll status.  The agency should request the LLS payment in the same pay period the employee returns to active payroll status.
  • Demotion after March 31, 2012 - An employee who is not eligible for the payment becomes eligible if the employee returns to a lower graded position between April 1, 2012 and March 31, 2013, provided the employee otherwise would have been eligible if the employee had been in the lower graded position on March 31, 2012 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- Automatic Processing

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, 2012 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, 2012 receive a prorated payment based on the employee's part-time percentage on March 31, 2012.
  • Part-time employees who are on a Paid Leave of Absence or Military Stipend Leave on March 31, 2012 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:

4/1/12

OT Effective Date:

4/1/12

Annual Additional Earnings:

Payment Amount

Earn End Date:

3/31/13


Agency Actions – Payments to Employees Not Paid Automatically

Payment will not be processed automatically for the following eligible employees:

  • Increment Code 0069 - Employees whose current position was previously downward reallocated.
  • Increment Code 2222 - Employees who are in a composite position.
  • Employees whose status as of the eligibility date is leave without pay (except Military Stipend Leave).

Payment Processing in Pay Period 26 (Institution) and Pay Period 1 (Administration)

Agencies should pay eligible employees with Increment Code 0069 or 2222 in Pay Period 26 (Institution) and Pay Period 1 (Administration).  Agencies must also update the General Comments page for employees in composite positions.

Payment Processing in Pay Period 1 (Institution) and Pay Period 2 (Administration) and later

Agencies should pay eligible employees who return to the payroll in the pay period the return from leave is processed.  The effective date of the return to payroll will determine the effective date of the payment.For example:  If an Institution agency enters a transaction in Pay Period 2L for an employee who returned to the payroll on April 20, 2012, the effective date is 4/20/12.  If an Administration agency enters a transaction in Pay Period 2L for an employee who returned to the payroll on April 13, 2012, the effective date is 4/13/12.

To Make A Payment

To pay an employee not processed automatically, 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:

3/31/13

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 March 31, 2012 and becomes eligible in 2012-2013 due to demotion as explained above, the agency should enter a comment on the General Comments page verifying the employee is eligible for LLS based on the reason the demotion occurred.

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 2012 Longevity Lump Sum payment will be included in the calculation of overtime earned from April 1, 2012 through March 31, 2013.

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 as of the date the report is run. The report was run on March 1, 2012 and will be available on March 9, 2012.

Agencies should review this listing carefully with particular attention to employees who are ineligible due to an “Unsatisfactory” evaluation on their last rating date.

Agencies should review the effective date (month and year) and amount of the employee’s last LLS payment, if applicable, to verify the employee did not previously receive an LLS payment on the October 2011 cycle. 

An employee on the April cycle with a prior LLS payment effective date other than April 1, 2011 may indicate the following:

  • Employee is on the October payment cycle or
  • Eligibility due to demotion to prior grade or return from leave effective after the April 2011 LLS processing

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:

  • 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).
  • Delete employees who should not appear on the listing.
    • Employees with an unsatisfactory rating on their last rating date.
    • For employees with an “Unsatisfactory” evaluation as stated above, the agency must submit a Job Action Request using the Action/Reason code of DTA/USP (Data Change/Unsat Perf) and update the increment code to 7777.
  • Change incorrect information pertaining to an employee appearing on the listing.

Do not add employees whose eligibility will change due to transactions that will be processed prior to Pay Period 26 (Institution) or Pay Period 1 (Administration).

Correction Sheets are required for employees with Increment Code 0069 or 2222 even though the agency is responsible for entering payment.  Corrections should be submitted as soon as possible and must be received no later than March 29, 2012.  Please fax corrections to (518) 474-2601 or (518) 402-4949 and send an email to the Payroll Earnings mailbox to inform Payroll Earnings 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 effective 4/1/12.

Withholding Taxes

This payment is subject to Federal, State, and Local income taxes and Social Security and Medicare employment taxes.  Income taxes will be calculated using the Marital Status and Withholding allowances in effect in PayServ at the time of the payment.

Deductions

Deductions will be taken for retirement normal contributions, garnishments, salary overpayments 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 pay period in which payment is processed.

Questions

Questions related to eligibility and payment may be directed to the Payroll Earnings mailbox.

Questions related to Deductions may be directed to the Payroll Deduction mailbox.

Questions related to withholding taxes may be directed to the Tax and Compliance mailbox.