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Date: February 26, 2014

Bulletin Number: 1302

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Subject

April 2013 Management and Confidential (M/C) Longevity Lump Sum (LLS) Payment

Purpose

To inform agencies of OSC’s automatic processing of the April 2013 M/C LLS payment and provide instructions for payments not processed automatically.

Affected Employees

Employees designated management or confidential in BU06, BU46, BU66 and BU79 with an increment code of 1976-2008 who meet the eligibility criteria.

Background

Civil Service Law, Section 130 and the Division of the Budget Bulletin D-1128 provide for payment of the 2013-2014 Longevity Payment effective April 2013 as a one-time, lump sum payment in the amount of $1,250 or $2,500.

Effective Date(s)

Payment is effective 04/01/13 and will be processed in a separate check dated 03/20/14 (Institution) or 03/26/14 (Administration).  There is no direct deposit for this payment.

Eligibility Criteria

Employees in graded positions (Grade 603-617) and NS positions (Grade 600) which are equated to a grade (Grade 603-617) are eligible for the April 2013 M/C LLS payment provided the employee:

  • Is Active, on a Leave With Pay or on an Unpaid Military Stipend Leave in a BU06, BU46, BU66 or BU79 position on 03/31/13; and
  • Has a Pay Basis Code of ANN or BIW (only If the employee is on a Paid Military Stipend Leave) on 03/31/13; and
  • Has five (5) or more years or ten (10) or more years of continuous service* at a base annual salary equal to or greater than the Job Rate of the employee’s grade as of 03/31/13 based on the 04/01/11 Salary Schedule; and
  • Did not have a withholding recommendation approved by the Division of the Budget; and
  • Is Active or on a Leave With Pay on 03/05/14 (Institution) or 03/12/14 (Administration) or is on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and returns to the payroll on or before 03/31/14.

Note:  Employees who are Terminated, Retired or Deceased on 03/05/14 (Institution) or 03/12/14 (Administration) are not eligible for the April 2013 M/C LLS payment regardless of their subsequent status.

*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 Unpaid Military Leave.

Withholding Recommendation

If the agency determines the full or partial value of the April 2013 M/C LLS payment should be withheld from an employee, the agency must request approval from the Division of the Budget as explained in Budget Bulletin D-1128.  The agency should submit a Data Chg on the Job Action Requests page using the Reason code PWH (Perf Withheld) and an increment code of 7777 in the Incr. Code field.  (The prior increment code will be restored after the April 2013 M/C LLS processing is complete.)  These transactions should be submitted as soon as possible following approval but prior to or as part of processing for Institution Pay Period 24L or Administration Pay Period 25L.  If the agency does not submit the transaction to withhold the April 2013 M/C LLS payment, the transaction will be entered by OSC based on information received from the Division of the Budget.

The following employees will become eligible for the April 2013 M/C LLS payment upon processing of the April 2013 M/C Performance Advances:

Upward Reallocation:  An employee occupying a position on 03/31/13 that was previously upward reallocated, whose salary at the time of the reallocation was equal to or greater than the Job Rate of the lower grade and whose salary upon application of the April 2013 M/C Performance Advance reaches the Job Rate of the reallocated grade (based on the 04/01/11 Salary Schedule) is entitled to the job rate credit of the lower grade.

  • The increment code of an employee receiving the April 2013 M/C Performance Advance that results in a salary equal to the Job Rate of the reallocated grade will be automatically updated from 0001 to 2013.
  • These employees will not receive an automatic April 2013 M/C LLS payment; the agency must submit a transaction after the performance advances are processed to make the payment.  In addition, the agency must submit a Data Chg on the Job Action Requests page using the same effective date as the performance advance, the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal) and an increment code reflecting the job rate credit of the lower grade in the Incr. Code field.

The following employees became eligible for the April 2013 M/C LLS payment during 2013-2014:

  • Leave of Absence/Preferred List on 03/31/13:  An employee who otherwise qualified for the April 2013 M/C LLS payment but was on an approved Leave of Absence (including Workers’ Compensation Leave or Unpaid Military Leave) or was on a preferred list on 03/31/13 and who returns to the payroll between 04/01/13 and 03/31/14 is eligible for the payment provided the employee:
    • Is Active or on a Leave With Pay on 03/05/14 (Institution) or 03/12/14 (Administration) or is on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and returns to the payroll on or before 03/31/14.

There is no minimum service requirement following the employee’s return to active payroll status.  The agency should submit a transaction to make the LLS payment as soon as practicable.

  • Demotions after 03/31/13:  An employee who was not eligible for the April 2013 M/C LLS payment on 03/31/13 became eligible if the employee returned to a lower graded position between 04/01/13 and 03/31/14, provided the employee otherwise would have been eligible if the employee had been in the lower graded position on 03/31/13, 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 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 the probationary period; and
    • The employee is Active or on a Leave With Pay on 03/05/14 (Institution) or 03/12/14 (Administration) or is on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and returns to the payroll on or before 03/31/14.

The agency should submit a transaction to make the LLS payment after the completion of six (6) full pay periods in the lower grade using the same effective date as the demotion.
Note:  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.

For instructions on submitting transactions to make the April 2013 M/C LLS payment, see Agency Actions – Payments Not Processed Automatically.

Control-D Report Available Prior to Processing

Prior to the automatic processing of the April 2013 M/C LLS payment, the following Control-D report will be available for agency use.

NPAY756 – Longevity Lump Sum (LLS) Eligibility Listing

This report is a preliminary listing of employees who appear eligible for the April 2013 M/C LLS payment based on information in effect on 03/31/13.  It does not exclude employees based on status on 03/05/14 (Institution) or 03/12/14 (Administration).  The report was run on 02/20/14 and is now available.

The following corrections to the preliminary listing should be submitted on the Correction Sheet. The form may be duplicated if additional copies are needed.

  • 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 supporting the salary equation with the Correction Sheet.
    • Eligible employees who are in a composite position (identified by Increment Code 2222) even though the agency must submit a transaction to make the payment.
    • Employees whose positions were downward reallocated and were eligible based on the prior grade (identified by Increment Code 0069) even though the agency must submit a transaction to make the payment.
  • Delete employees who should not appear on the listing, such as:
    • Employees who had a withholding recommendation submitted to the Division of the Budget; requires DOB approval in order for OSC to take action.  In addition, once the withhold is approved, the agency should submit a Data Chg on the Job Action Requests page using the Reason code PWH (Perf Withheld) and an increment code of 7777 in the Incr. Code field.
  • Identify employees appearing on the listing who have incorrect information appearing in PayServ affecting their eligibility for the LLS payment.  In addition, the agency must submit the appropriate transaction to correct the information.

Correction Sheets should be submitted as soon as practicable but must be received no later than 03/03/14.  Please fax completed Correction Sheets to (518) 402-4949 and send an email to the Payroll Earnings mailbox stating that a Correction Sheet has been faxed; please include the Deptid and ‘LLS Correction Sheet’ in the Subject line.

OSC Actions - Automatic Processing

OSC will process the April 2013 M/C LLS payment for those employees who meet the eligibility criteria by inserting a row on the employee’s Additional Pay page as shown below.  The payment amount is $1,250 for employees with five (5) or more years of continuous service (identified by Increment Code 2004-2008) or $2,500 for employees with ten (10) or more years of continuous service (identified by Increment Code 1976-2003), or a prorated amount.

  • Employees who are on a Voluntary Reduction in Work Schedule (VRWS) on 03/31/13 receive the full LLS payment amount based on the employee’s increment code.  Agencies must verify that the Full/Part field on the Job Data/Job Information page is ‘Voluntary’.
  • Employees who are on a Leave With Pay with an Action/Reason code of Paid Leave of Absence/SKL (Sick Lv) on 03/31/13 receive an amount based on the employee’s increment code and percentage.  The full LLS payment amount based on the employee’s increment code is multiplied by the employee’s Empl Work Percent on the Job Data/Job Information page prior to the leave.
  • All other employees (including employees on a Leave With Pay, Paid Military Stipend Leave and Unpaid Military Stipend Leave) receive an amount based on the employee’s increment code and percentage in effect on 03/31/13.  The full LLS payment amount based on the employee’s increment code is multiplied by the employee’s Empl Work Percent on the Job Data/Job Information page in effect on 03/31/13.

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

Earnings Code:

LLS

Effective Date:

04/01/13

OT Eff Date:

04/01/13

Annual Addl Earnings:

$1250 or prorated amount (Increment Codes 2004-2008)
$2500 or prorated amount (Increment Codes 1976-2003)

End Date:

03/31/14

 

Agency Actions – Payments Not Processed Automatically

Agencies must submit transactions to make the April 2013 M/C LLS payment to the following employees:

  • Eligible on 03/31/13 and on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration):  Agencies must submit transactions for employees who meet the eligibility criteria on 03/31/13 but who are on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and return to the payroll on or before 03/31/14.  Transactions should be submitted in the same pay period the employee returns to active payroll status; the effective date of the LLS payment should be 04/01/2013.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing.
  • Leave of Absence on 03/31/13:  Agencies must submit transactions for employees who were otherwise eligible on 03/31/13 to receive the payment but whose Payroll Status was Leave of Absence (except those on Unpaid Military Stipend Leave) and who returned from such leave between 04/01/13 and 03/31/14.
    • If the employee is Active or on a Leave With Pay on 03/05/14 (Institution) or 03/12/14 (Administration), the transaction may be submitted beginning in Institution Pay Period 24L or Administration Pay Period 25L.  The effective date of the LLS payment should be the same as the return from leave effective date that occurred in 2013-2014.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing.
    • If the employee is on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and returns to the payroll on or before 03/31/14, the transaction should be submitted in the pay period the return from this leave is processed.  The effective date of the LLS payment should be the same as the return from leave effective date that occurred in 2013-2014.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing.
    • Note:  The employee’s increment code may need to be adjusted as a result of the leave of absence on 03/31/13 and could impact the employee’s April 2013 M/C LLS eligibility.
  • Increment Code 0069 on 03/31/13:  Agencies must submit transactions for eligible employees whose position on 03/31/13 was previously downward reallocated.  Transactions may be submitted beginning in Institution Pay Period 24L or Administration Pay Period 25L; the effective date of the LLS payment should be 04/01/13.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s job rate credit in the grade prior to the reallocation.
  • Increment Code 2222 on 03/31/13:  Agencies must submit transactions for eligible employees who were in a composite position on 03/31/13.  Transactions may be submitted beginning in Institution Pay Period 24L or Administration Pay Period 25L; the effective date of the LLS payment should be 04/01/13.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the increment code of the employee’s qualifying position (noted in General Comments) and the percentage attributed to such position on 03/31/13.  Information regarding the composite position must be included on the General Comments page.
  • Upward Reallocation:  Agencies must submit transactions for employees whose position on 03/31/13 was previously upward reallocated and whose salary as a result of the April 2013 M/C Performance Advance is equal to the Job Rate of the reallocated grade as explained above based on the 04/01/11 Salary Schedule.  Transactions may be submitted beginning in Institution Pay Period 25L or Administration Pay Period 26L; the effective date of the LLS payment should be 04/01/13.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s increment code updated as a result of the performance advance.
  • Preferred List on 03/31/13:  Agencies must submit transactions for employees who were otherwise eligible on 03/31/13 to receive the payment but who were on a preferred list and who returned to active payroll status between 04/01/13 and 03/31/14.
    • If the employee is Active or on a Leave With Pay on 03/05/14 (Institution) or 03/12/14 (Administration), the transaction may be submitted beginning in Institution Pay Period 24L or Administration Pay Period 25L.  The effective date of the LLS payment should be the same as the return from leave effective date that occurred in 2013-2014.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing.
    • If the employee is on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and returns to the payroll on or before 03/31/14, the transaction should be submitted in the pay period the return from this leave is processed.  The effective date of the LLS payment should be the same as the return from leave effective date that occurred in 2013-2014.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing.
    • Note:  The employee’s increment code may need to be adjusted as a result of time off the payroll and could impact the employee’s April 2013 M/C LLS eligibility.
  • Demotions after 03/31/13:  Agencies must submit transactions for employees who were ineligible for the payment on 03/31/13 but became eligible in 2013-2014 due to a demotion as explained above.
    • If the employee is Active or on a Leave With Pay on 03/05/14 (Institution) or 03/12/14 (Administration), the transaction may be submitted beginning in Institution Pay Period 24L or Administration Pay Period 25L, provided the employee has completed six (6) full pay periods in the lower grade.  The effective date of the LLS payment should be the same as the effective date of the demotion.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on information on the date of demotion.  Information regarding the reason the demotion occurred must be included on the General Comments page.
    • If the employee is on a Leave of Absence on 03/05/14 (Institution) or 03/12/14 (Administration) and returns to the payroll on or before 03/31/14, the transaction should be submitted following the employee’s return from leave provided the employee has completed six (6) full pay periods in the lower grade.  The effective date of the LLS payment should be the same as the effective date of the demotion.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on information on the date of demotion.  Information regarding the reason the demotion occurred must be included on the General Comments page.

Submitting Payment

To make the April 2013 M/C LLS payment to eligible employees who were not processed automatically, agencies must submit the following information on the Additional Pay page using Earnings Code LLS.

Earnings Code:

LLS

Effective Date:

As defined above

OT Eff Date:

Same as Effective Date

Annual Addl Earnings:

$1250 or prorated amount
$2500 or prorated amount

End Date:

03/31/14 OR the last date the employee is in an eligible position (see the section entitled “Overtime Calculation Information”

Increment Code Correction

If the employee did not receive an automatic April 2013 M/C LLS payment due to an incorrect increment code, in addition to submitting the LLS payment, the agency must submit a Data Chg on the Job Action Requests page using the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal) and the appropriate increment code in the Incr. Code field.

Control-D Report Available After Processing

After the automatic processing of the April 2013 M/C LLS payments is completed, the following Control-D report will be available for agency use.

NPAY770 – One Time Payment Report

This report identifies all employees who received the April 2013 M/C LLS payment effective 04/01/13.

Overtime Calculation Information

The LLS payment is included in the calculation of overtime compensation (refer to the Online Payroll Manual accessed through PayServ – Earnings Manual > Payments\Withholdings > Overtime Compensation).  The April 2013 M/C LLS payment will be included in the calculation of overtime earned from the OT Eff Date through the End Date on the employee’s Additional Pay page for Earnings Code LLS.

If an employee is appointed to a position after the effective date of the April 2013 M/C LLS payment which results in a salary below the Job Rate of the grade of the new position, the LLS payment cannot be included in the compensation calculation of any overtime earned after the date of the appointment.  Therefore, OSC will update the End Date of those transactions processed automatically to reflect the last date the employee was in an eligible position.  Agencies are responsible for entering the correct End Date on all agency submitted transactions.

Retroactive Adjustment

OSC will automatically calculate retroactive adjustments for overtime earned on or after the OT Eff Date associated with the April 2013 M/C LLS payment and paid prior to the automatic processing of the April 2013 M/C LLS payment.

Retirement and Deduction Information

The LLS payment is included as salary for retirement purposes.  Deductions will be taken from the LLS payment for normal retirement contributions, garnishments and federal levies.

Tax Information

The LLS payment is taxable income, will be included in the employee’s taxable gross and is subject to all employment taxes and income taxes.  If the employee has any additional tax amount on the Update Employee Tax Data page, the additional amount will be deducted from both the employee’s regular paycheck and the separate paycheck.

Payroll Register and Employee’s Paycheck/Advice

The Earnings Code LLS and the amount paid will be displayed on the Payroll Register.  The Earnings Description Longevity LSP and the amount paid will appear on the employee’s paycheck stub or direct deposit advice.

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

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. 908.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (From AC 934-P) and a Report of Check Exchange (Form AC 1476-P).  If a Next of Kin Affidavit has been previously submitted for a deceased employee’s payroll check, OSC will accept a photocopy of this form along with a new Report of Check Exchange.

Questions

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

Questions regarding deductions and retirement may be directed to the Payroll Deductions mailbox.

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