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Date: May 31, 2017

Bulletin Number: Other-34

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Subject April 2017 State University Construction Fund (SCF) Management and Confidential (M/C) Longevity Lump Sum (LLS) Payment

Purpose To provide the State University Construction Fund instructions for processing the April 2017 SCF M/C LLS payment.

Affected Employees Employees in Bargaining Unit 96 in the State University Construction Fund with an increment code of 1976-2012 who meet the eligibility criteria.

Background The Division of the Budget Bulletin D-1135 provide for payment of the 2017-2018 Longevity Payment effective April 2017 as a one-time lump sum payment in the amount of $1,250 or $2,500.

The State University Construction Fund’s Board Resolution provides for payment of the 2017-2018 Longevity Payment in April 2017 as a one-time, lump sum payment in the amount of $1,250 or $2,500.

Effective Date(s) Payment is effective 04/01/17 and may be submitted beginning in Administration Pay Period 4L.  The payment will be processed in a separate check; there is no direct deposit for this payment.

Eligibility Criteria Employees in NS positions (Grade 600) which are equated to a grade (Grade 603-617) are eligible for the April 2017 SCF M/C LLS payment provided the employee:
  • Is Active, on a Leave With Pay or on an Unpaid Military Stipend Leave in a BU96 position on 03/31/17; and
  • Has a Pay Basis Code of ANN or BIW (only if the employee is on a Paid Military Stipend Leave) on 03/31/17; 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 (based on the 4/1/16 Salary Schedule) as of 03/31/17; and
  • Did not have a withholding recommendation approved by the Division of the Budget.

*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.

The following employees may become eligible for the April 2017 SCF M/C LLS payment upon processing of the April 2017 SCF M/C Performance Advance which results in Job Rate:

Lateral Position Change from a Non-M/C Position Where the Employee’s Salary was Equal to or Greater Than Job Rate to an M/C Position with a Higher Job Rate:  An employee with a salary equal to or greater than the Job Rate of their salary grade, who had a lateral position change to an M/C position with a higher Job Rate, and whose salary upon application of the April 2017 SCF M/C Performance Advance is equal to the Job Rate in the M/C position is entitled to job rate credit for service in the non-M/C position.

  • The agency must enter the increment code reflecting the combined job rate credit  in the Incr. Code field when submitting the Pay Change on the Job Action Requests page to pay the performance advance.
  • These employees may be eligible for but will not receive an automatic April 2017 SCF M/C LLS payment.  If the employee’s combined job rate credit equals five (5) or more years or ten (10) or more years, the agency must submit a transaction to make the LLS payment. 

The following employees will become eligible for the April 2017 SCF M/C LLS payment during 2017-2018:

Leave of Absence on 03/31/16:  An employee who otherwise qualified for the April 2017 SCF M/C LLS payment but was on an approved Leave of Absence (including Workers’ Compensation Leave or Unpaid Military Leave) on 03/31/17 becomes eligible if they return to the payroll or are appointed to an eligible position between 04/01/17 and 03/31/18.  There is no minimum service requirement following the employee’s return to active payroll status.

Demotions after 03/31/17:  An employee who was not eligible for the April 2017 SCF M/C LLS payment on 03/31/17 becomes eligible if the employee returns to a lower graded position between 04/01/17 and 03/31/18, provided the employee:

  • Otherwise would have been eligible if the employee had been in the lower graded position on 03/31/17 and remains in the lower graded position for at least six (6) full 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.

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 the 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 2017 SCF M/C LLS payment, see Agency Actions.

Control-D Report Available Prior to Processing The following Control-D report is currently available for agency review.

NPAY756 – Longevity Lump Sum (LLS) Eligibility Listing

This report is a preliminary listing of employees who appear eligible for the April 2017 LLS payment based on information available as of the date the report is produced.  The report was run on 03/02/17 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.  The agency must submit documentation supporting the salary equation with the Correction Sheet even though the agency must submit a transaction to make the payment.
    • 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.
  • Delete employees who should not appear on the listing, such as:
    • Employees who had a withholding recommendation submitted to the Division of the Budget for the full value of the LLS payment; 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 an effective date of 03/31/17, 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.

Do not add or delete employees whose eligibility will change due to transactions that will be processed prior to or in Administration Pay Period 4L.

Correction Sheets should be submitted as soon as possible but must be received no later than 05/29/2017.  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 Department ID and ‘LLS Correction Sheet’ in the Subject line.

Agency Actions The agency must submit transactions to make the April 2017 SCF M/C LLS payment to 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 2008-2012) or $2,500 for employees with ten (10) or more years of continuous service (identified by Increment Code 1976-2007), or a prorated amount.

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

Earnings Code:

LLS

Effective Date:

04/01/17

OT Eff Date:

04/01/17

Annual Addl Earnings:

$1250 or prorated amount (Increment Codes 2008-2012)
$2500 or prorated amount
(Increment Codes 1976-2007)

End Date:

03/31/18*

*If an employee is eligible for the April SCF M/C 2017 LLS payment but has moved to an ineligible position between 4/1/17 and when payment is processed in pay period 4L (Administration), the End Date should reflect the last date the employee was in the eligible position.  For instructions, see Overtime Calculation Information.

Overtime Calculation Information The LLS payment is included in the calculation of overtime compensation (refer to the Online Payroll Manual accessed from the PayServ Bulletin Board – Payroll Manual > Earnings Manual > Time Entry Payments > Overtime Compensation).  The April 2017 SCF 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 an ineligible position (including a position which results in a salary below the Job Rate of the grade of the new position) after the effective date of the April SCF M/C LLS payment, the payment cannot be included in the compensation calculation of any overtime earned after the date of the appointment.

Therefore, if an eligible employee is appointed to an ineligible position prior to or in Administration Pay Period 4L, the agency must use the last date the employee was in an eligible position when submitting the transaction to pay the LLS in pay period 4L.  Beginning in pay period 5L (Administration) or later, if an employee moves to an ineligible position, agencies are responsible for inserting a row on the Additional Pay page at the Effective Date level of Earnings Code LLS and entering the following information.  The transaction should be submitted in the pay period the position change is processed.

Effective Date:

Last date in eligible position (date prior to appointment)

OT Eff Date:

Same as original OT Eff Date

Annual Addl Earnings:

Same as original amount (populates automatically)

End Date:

Same as Effective Date

Goal Balance:

Same as Annual Addl Earnings (to prevent making another payment)

Agency Actions-Retroactive Processing Reporting Retroactive Adjustments

Time Entry earnings codes that are submitted with an amount will not be adjusted automatically.  Therefore, beginning in Administration Pay Period 4L, agencies must report the adjustment amount for earnings codes such as Extra Time Override (EXO) and Regular Salary Override (RGO).

Correcting an Automatic Retroactive Adjustment

When certain conditions exist in an employee’s record, the automatic retroactive adjustment may be incorrect.  Therefore, the agency is responsible for identifying employees who meet the following conditions and, if necessary, submitting the necessary adjustment.

  • If an employee has a check returned or exchanged on an AC-230 for dates on or after the effective date of the payment, the payroll system does not consider the AC-230 when calculating the automatic retroactive adjustment.
  • If earnings were previously reported using Earnings Code RGS and a date range that exceeded the number of days reported, the system will calculate the adjustment of earnings based on the number of workdays within the range.
  • Adjustments for earnings that are calculated automatically, such as OT for Annuals (OTA), will be calculated incorrectly if the dates previously reported as a single entry on the Time Entry page overlap the effective date of the payment.  The system will calculate an adjustment for all earnings reported in a single entry based on the salary in effect on the Earnings End Date.
  • For employees who had a change reported on the Job Data page, since the effective date of the payment and the action resulted in an overpayment of earnings, the automatic negative retroactive adjustment may not have been processed because the overpayment was either not recoverable or was recovered using an overpayment earnings code or an AC-230.  In this case, the negative retroactive adjustment may be re-generated when the payment is processed.  OSC will turn off (not process) the automatic negative adjustment for these employees since in most cases these overpayments were either not recoverable or recovered using another method.

If an overpayment of earnings is identified after the automatic payment is processed but before the paycheck is received by the employee, the employee must be notified of the overpayment and the adjustment that will be reported in a subsequent pay period.

Submitting an Adjustment

To process a retroactive adjustment or correct an automatic retroactive adjustment, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code AJR.

Earnings Begin Date:

The first date included in the adjustment

Earnings End Date:

The last date included in the adjustment

Earn Code:

AJR

Amount:

Amount to be adjusted

Comments:

An explanation of the adjustment

Tax Information The LLS payment is supplemental taxable income, will be included in the employee’s taxable gross and is subject to all employment taxes and income taxes.

Federal and State tax withholding will be calculated using the Supplemental Aggregate method. New York City tax withholding will be calculated using the Supplemental Flat-rate method (4.25%).

More information about Supplemental wages will be provided in a separate bulletin.

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 and direct deposit advice (if applicable).

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 Taxation 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 (Form AC 934-P), original Death Certificate 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 Deduction mailbox.

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