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Date: December 17, 2004 Bulletin Number: UCS-81
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Subject

2004 Year End Adjustment for Judges

Purpose
To explain the automatic processing and agency procedures concerning the 2004 Year End Adjustment that will ensure judges receive the full or prorated share of their statutory salary for calendar year 2004.

Affected Employees
Judges who served at any time during the period January 01, 2004 through December 31, 2004 and have a Pay Basis Code of CAL.

Effective Date(s)
Payment will be included in the regular paycheck, dated December 29, 2004.
Definitions
Statutory Salary: The salary approved on Job Data Record on the Compensation page.
Regular Salaried Earnings: All earnings in the Earn Codes RGS and RRS (only dates on or after January 1, 2004).
Prorated Salary: The prorated salary for judges who were hired and/or had a salary change and/or had a status change after January 1, 2004 must be determined as follows using the applicable salary rate:
    1. Determine the number of calendar days served. If more than one salary rate is earned, determine the number of days served at each salary rate. A separate amount must be calculated for each salary rate.
    2. Divide the number of days at each salary rate (Step #1 above) by the number of days between January 1 and December 31, 2004 (366) and round to seven (7) places.
    3. Multiply the result (Step #2 above) by the salary for that period and round to two (2) places.
    4. If more than one salary rate is applicable, add the results for each salary rate.
Background

Based on an agreement between the Office of Court Administration and the Office of the State Comptroller, a new method for paying judges will take effect in calendar year 2004. The total amount of regular earnings actually paid to a judge during the calendar year of 2004 will equal the judge’s statutory salary rate, or prorated share of the judge’s statutory salary or composite rate, whichever is applicable.

Because calendar year 2004 is a leap year, the prorated amount of statutory salary is calculated by dividing the number of days served by 366 and then multiplying the result by the applicable statutory salary rate. Calendar year 2004 began on January 1 and, after 26 pay periods are paid, there are two (2) days (12/30 and 12/31) that would previously have been paid in the first paycheck in 2005. However, in accordance with the new method of payment, these two days will be paid in 2004 in the final check of the year.

For judges who served the entire year, their W-2 wages for 2004 will reflect their statutory salary (or composition of statutory salaries) after accounting for the following:

  • The adjustment for 2003 earnings;
  • Any earnings from other jobs or retroactive payments from prior years;
  • Any other non-statutory salary earnings, such as reassignment pay, health care reimbursement, taxable expense, fringe benefit, etc;
  • Any amounts excluded from wages (e.g., deferred compensation contributions, etc.).

For judges who were appointed after January 1, 2004, their W-2 wages for 2004 will reflect the prorated share of statutory salary, after adjusting for any other non-salary earnings and amounts excluded for wages.

Information on the payment of judges’ salaries in 2005 will be provided in a forthcoming bulletin.


Automatic Adjustment of Regular Earnings by OSC
OSC will automatically calculate the adjustment of regular earnings for 2004 for judges whose Pay Basis Code is CAL (except as identified on the following page) and who served at any time during the period January 1 through December 31, 2004. The amount of the adjustment will be determined as follows:
    1. For judges who served continuously from January 1, 2004 through December 31, 2004 and did not have a status change or change in salary, the adjustment will be calculated by determining the difference between what was paid as regular wages through December 15, 2004 and their statutory salary as reported on the Compensation page. The adjustment will be paid using the Earn Code RGS.
    2. For judges who served continuously from January 1, 2004 through December 31, 2004 and did not have a status change, but did have a salary change, the prorated salary will be calculated as stated in the ‘Definitions’ section of this bulletin. The adjustment will be calculated by determining the difference between the prorated salary calculation and the judge’s regular wages paid through the pay period ending December 15, 2004. The adjustment will be paid using the Earn Code RGS.
    3. For newly appointed judges (action of New Hire or Concurrent Hire) after January 1, 2004 with no subsequent status change and who are still active December 31, 2004 with the same or different salary rate, the prorated salary will be calculated as stated in the ‘Definitions’ section of this bulletin. The prorated wages due for 2004 will be based on the number of days served and the applicable salary rate. The adjustment will be calculated by determining the difference between the prorated salary calculation and the judge’s regular wages paid through the pay period ending December 15, 2004. The adjustment will be paid using the Earn Code RGS.
Exceptions to the Automatic Adjustment of Regular Earnings by OSC
Judges who meet one or more of the following exception criteria will not have their adjustment calculated automatically by OSC:
  • Judges with RRS or OVP balances for 2004.
  • Judges with RGS earnings paid in 2004, but earned in 2003.
  • Judges who were terminated, retired, deceased or placed on a leave of absence in 2004.
  • Non-judicial employees who were transferred into a judicial position in 2004.
  • Judges who have the action of Rehire or Return from Leave on their Job Data record and the effective date is other than January 1, 2004
  • Judges who were on a paid leave of absence at any time in 2004.
OSC Responsibility for the Automatic Adjustment of Regular Earnings
OSC will produce exception listings for the Office of Court Administration at various points during preparations for the automatic adjustment. These listings will be e-mailed to Kelly Flanigan.
  • Listings will be produced on December 9, 2004 (after the checks for December 15, 2004 are confirmed) to identify judges who will not receive an automatic year-end adjustment, based on the exception criteria stated above.
  • Listings will also be produced on December 9, 2004 to identify judges who are tentatively scheduled to receive the automatic adjustment. The listings will include department, emplid, employee record number, name, 2004 salary entitlement, RGS paid thru 12/15/04, and RGS Balance Due (amount to be paid in Pay Period 19C).
  • Final listings identifying the judges who received an automatic adjustment will be produced on December 22, 2004 after the automatic payment is processed. The listings report will include department, emplID, employee record number, name, 2004 salary entitlement, RGS paid thru 12/15/04, and RGS Balance Due.
Agency Responsibility for Judges Identified on Exception Listings

The agency must calculate and report the Additional regular earnings for judges identified on the exception listings, if applicable.

The adjustment must be calculated and reported as follows:

  1. Determine the amount of salary entitlement for calendar year 2004 using the formula contained under the Definitions Section on page 1 of this bulletin.
  2. Determine the amount of regular earnings paid in calendar year 2004 for earnings earned in 2004, including the amount of regular earnings (RGS) to be paid 12/16/04 through 12/29/04.
  3. Subtract the amount paid, as determined in Step #2 above, from the amount of salary entitlement, as determined in Step #1 above.
  4. Enter the resulting adjustment as determined in Step #3 above, into the Time Entry page using the new Earn Code JYA (Judges Year End Adjustment).

The Earn Code JYA must be entered into the Time Entry page as follows:

Earnings Begin Date: Enter 12/16/04
Earnings End Date: Enter 12/29/04
Earn Code: Enter JYA
Amount: Enter the amount of the year-end adjustments
Comments: Enter “Refer to General Comments”

General Comments Page
An explanation of the JYA calculation must be provided on the General Comments page.

Agency Responsibility for Judges Who Had AC230s Processed in Calendar Year 2004

The agency must identify judges, if any, for whom an AC230 was processed in calendar year 2004 and will have a year-end adjustment automatically calculated by OSC.

For these judges, the agency must determine if the year-end adjustment calculated by OSC is correct. If the automatic year-end adjustment is incorrect, the agency must report the Earn Code JYA in the Time Entry page to adjust the amount of the system-generated RGS. A General Comment must be entered to explain the adjusted amount.

Agency Responsibility for Reporting Actions in Pay Period 20C
Agencies must refer to the Attachment for procedures for reporting actions in Pay Period 20C.
Payroll Register and Employee’s Paycheck or Advice

The amount of the automatic payment will be included in the employee’s regular earnings, Earn Code RGS, that is displayed on the payroll register and the employee’s pay stub or advice.

If the Earn Code JYA is reported, this Earn Code will be displayed on the payroll register and the employee’s pay stub or advice, in addition to the Earn Code RGS.

If the Earn Code RGO is reported, this Earn Code will replace Earn Code RGS and will be displayed on the payroll register and the employee’s pay stub or advice.

Reporting Actions for Period 20C
Agencies must not report any actions for Pay Period 20C until after the 12/29/04 checks have been processed. Instructions for these actions and changes for calendar year 2005 will be provided in a forthcoming bulletin.

Questions

Questions regarding this bulletin may be directed to the Payroll Audit mailbox.