Purpose

To inform agencies of new earnings codes and procedures for processing the 2011-2012 and 2012-2013 SSPU BU91 Deficit Reduction Plan.

Affected Employees

Employees in Bargaining Unit 91 – Security Supervisors Unit (SSPU)

The 2011-2012 SSPU BU91 Deficit Reduction Plan excludes employees with an hourly rate less than $7.39.  The 2012-2013 SSPU BU91 Deficit Reduction Plan excludes employees with an hourly rate less than $7.36.

Background

Pursuant to Section 7 of Part A of Chapter 491 of the Laws of 2011 and the Division of the Budget Bulletin B-1201 issued June 22, 2012, a plan has been established to reduce the compensation of and provide additional leave time to any employee within the purview of the Agreement between the State of New York and Council 82.

Effective Date(s)

Both the 2011-2012 and 2012-2013 SSPU BU91 Deficit Reduction Plans will be processed in Institution Pay Period 9L, checks dated 08/23/2012 and Administration Pay Period 10L, checks dated 08/29/2012.

Attachment A provides a breakdown of the 2011-2012 SSPU BU91 Deficit Reduction Plan Period.

Attachment B provides a breakdown of the 2012-2013 SSPU BU91 Deficit Reduction Plan Period.

New Earnings Codes

OSC has created new earnings codes to process the SSPU BU91 Deficit Reduction Plan.

2011-2012 SSPU BU91 Deficit Reduction Plan

2012-2013 SSPU BU91 Deficit Reduction Plan

Automatic Creation of the 2011-2012 D1K Time Entry Record - OSC

Pay Basis Code = ANN and Employee Status = Active or Leave with Pay on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or Greater (Institution and Administration)

In Institution Pay Period 9L or Administration Pay Period 10L, OSC will create a D1K Time Entry record for employees who are in Bargaining Unit 91 and meet the following criteria:

• Employee has a Pay Basis Code equal to ANN, and
• Employee has an Employee Status of Active or Leave with Pay on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or greater (Institution and Administration)

The D1K Time Entry record will be created as follows:

Calculating the 2011-2012 D1K Amount

The 2011-2012 SSPU BU91 Deficit Reduction Amount for employees with a D1K record will be calculated based on the employee’s increased annual salary plus the increased annual value of the following additional pay earnings codes in effect on the appropriate Earnings End Date multiplied by -.01923 and then by the value in the Hours/Units field.

Automatic Creation of the 2011-2012 D2K Transaction in Paycheck Data - OSC

Pay Basis Code = ANN and Employee is Subject to the 2011-2012 DRP But Does Not Have a D1K Time Entry Record

In Institution Pay Period 9L and Administration Pay Period 10L, OSC will create a D2K transaction in Paycheck Data for employees who are in Bargaining Unit 91 and meet the following criteria:

• Employee has a Pay Basis Code equal to ANN, and
• Employee has an Employee Status of Active or Leave with Pay on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND has an Employee Status of Leave of Absence but no instance of an Employee Status of Active or Leave with Pay on 05/03/2012 or greater (Institution and Administration), or
• Employee has an Employee Status of Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND has an Employee Status of Active, Leave with Pay or Leave of Absence on 05/03/2012 or greater (Institution and Administration)

The D2K transaction will be created as follows:

Pay Basis Code = HRY and Employee Status = Active, Leave with Pay or Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or Greater (Institution and Administration)

In Institution Pay Period 9L or Administration Pay Period 10L, OSC will also create a D2K transaction in Paycheck Data for employees who are in Bargaining Unit 91 and meet the following criteria:

• Employee has a Pay Basis Code equal to HRY, and
• Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or greater (Institution and Administration)

Exception: The D2K transaction will not be created for employees with an hourly rate less than $7.39.

The D2K transaction will be created as follows:

Manual Set Up of the 2011-2012 D2K Time Entry Record - Agency

Monies earned during the 2011-2012 SSPU Deficit Reduction Period while in Bargaining Unit 91 using any of the earnings codes listed below are also subject to the deficit reduction but will not be calculated automatically. Therefore, it is the agency’s responsibility to total all of the monies paid using the codes below and multiply the result by -.01923.

A D2K Time Entry transaction should be submitted as follows:

If the agency subsequently reduces the monies earned for any of the earnings codes listed above during the deficit reduction period, a corresponding D2K transaction should also be submitted to reduce the deficit reduction amount. The amount would be calculated by multiplying the adjustment to the earnings amount by +.01923.

Note: Monies earned using Earnings Codes BSA or S3G should be handled on a case by case basis depending on whether the monies were earned during the 2011-2012 SSPU BU91 Deficit Reduction Period.

Automatic Creation of the 2012-2013 D4K Additional Pay Record - OSC

Pay Basis Code = ANN and Employee Status = Active, Leave with Pay or Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or Greater (Institution and Administration) OR Employee Status = Active, Leave with Pay or Leave of Absence on 08/08/2012 (Institution Lag) or 08/15/2012 (Administration Lag)

In Institution Pay Period 9L or Administration Pay Period 10L, OSC will create a D4K Additional Pay record for employees who are in Bargaining Unit 91 and meet the following criteria:

• Employee has a Pay Basis Code equal to ANN, and
• Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or greater (Institution and Administration), or
• Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on 08/08/2012 (Institution Lag) or 08/15/2012 (Administration Lag)

The D4K Additional Pay record will be created as follows:

Calculating the 2012-2013 D4K Amount

The 2012-2013 SSPU BU91 Deficit Reduction Amount for employees with a D4K record will be calculated based on the employee’s increased annual salary plus the increased annual value of the following additional pay earnings codes in effect on the appropriate End Date multiplied by -.01538 and then by the Employee’s Work Percent in effect on the End Date.

Automatic Creation of the 2012-2013 D5K Transaction in Paycheck Data - OSC

Pay Basis Code = HRY and Employee Status = Active, Leave with Pay or Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND on 05/03/2012 or Greater (Institution and Administration) OR Employee Status = Active, Leave with Pay or Leave of Absence 08/08/2012 (Institution Lag) or 08/15/2012 (Administration Lag)

In Institution Pay Period 9L and Administration Pay Period 10L, OSC will create a D5K transaction in Paycheck Data for employees who are in Bargaining Unit 91 and meet the following criteria:

• Employee has a Pay Basis Code equal to HRY, and
• Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on 03/07/2012 (Institution) or 03/14/2012 (Administration) AND 05/03/2012 or greater (Institution and Administration), or
• Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on 08/08/2012 (Institution Lag) or 08/15/2012 (Administration Lag)

Exception: The D5K transaction will not be created for employees with an hourly rate less than $7.36.

The D5K transaction will be created as follows:

Manual Set Up of the 2012-2013 D5K Time Entry Record - Agency

Monies earned during the 2012-2013 SSPU Deficit Reduction Period while in Bargaining Unit 91 using any of the earnings codes listed below are also subject to the deficit reduction but will not be calculated automatically. Therefore, it is the agency’s responsibility to total all monies paid using the codes below and multiply the result by -.01538.

A D5K Time Entry transaction should be submitted as follows:

If the agency subsequently reduces the monies earned for any of the earnings codes listed above during the deficit reduction period, a corresponding D5K transaction should also be submitted to reduce the deficit reduction amount. The amount would be calculated by multiplying the adjustment to the earnings amount by +.01538.

Note: Monies earned using Earnings Codes BSA or S3G should be handled on a case by case basis depending on whether the monies were earned during the 2012-2013 SSPU BU91 Deficit Reduction Period.

Deficit Reduction Monies That Exceed Retroactive Payments

The total value of the 2011-2012 and 2012-2013 deficit reduction monies calculated in Institution Pay Period 9L or Administration Pay Period 10L cannot exceed the total value of the employee’s retroactive adjustments minus the retroactive health insurance adjustment. If the deficit reduction monies exceed the retroactive adjustments, the overage will be entered directly on Paycheck Data as a positive amount using Earnings Code D2K and/or Earnings Code D5K. In addition, this amount will be reported to the employee’s current agency. The agency is responsible for calculating fifteen equal installments and collecting over the remainder of the 2012-2013 SSPU BU91 Deficit Reduction Period using Earnings Code D2K and/or D5K. Such installments will begin in Institution Pay Period 10L or Administration Pay Period 11L.

Manual Set Up of the 2012-2013 D8K Additional Pay Record - Agency

Newly Eligible Employees

Agencies are responsible for creating the D8K Additional Pay record for employees who are hired, rehired, concurrently hired or transferred into Bargaining Unit 91 with an Employee Status of Active or Leave with Pay beginning in Institution Pay Period 10L or Administration Pay Period 11L through Institution Pay Period 24L or Administration Pay Period 25L provided the deficit reduction was not taken automatically in Institution Pay Period 9L or Administration Pay Period 10L. Agencies must also restart an existing D8K Additional Pay record if an employee goes on a Leave of Absence and subsequently returns to the payroll in Bargaining Unit 91 with an Employee Status of Active or Leave with Pay during the 2012-2013 SSPU BU91 Deficit Reduction Period.

FEE Employees

Since employees with a Pay Basis Code of FEE do not receive automatic retroactive increases, these employees are not subject to the 2011-2012 BU91 Deficit Reduction Plan. However, agencies are responsible for creating the D8K Additional Pay record for the 2012-2013 Deficit Reduction Plan beginning in Institution Pay Period 10L or Administration Pay Period 11L.

The D8K Additional Pay record should be set up as follows:

Calculating the 2012-2013 D8K Amount

Each pay period, the system will calculate the deficit reduction amount for employees with a D8K record that was active any time during the pay period being processed regardless of whether the employee was in Bargaining Unit 91. The system will total all monies for the following earnings codes where the earnings end date falls within the pay period dates being processed and multiply the result by -.01538.

As with other Additional Pay Earnings Codes, it may be necessary to submit an adjustment in order to calculate the correct deficit reduction amount.

Employees No Longer Subject to the Deficit Reduction

If an employee transfers into a bargaining unit that is not subject to the SSPU BU91 Deficit Reduction Plan, the agency must insert a row on the Additional Pay page for Earnings Code D8K and insert an Effective Date and End Date equal to the last date the employee is in Bargaining Unit 91.

Processing Adjustments – D5K (Time Entry)

If an employee is in both an eligible and ineligible bargaining unit during a pay period and has a D8K record active any time during the same pay period, the system will calculate the deficit reduction amount on all eligible earnings where the earnings end date falls within the pay period dates being processed. It is the agency’s responsibility to determine the monies that should not have been included in the deficit reduction amount, calculate the adjustment amount, and submit a positive adjustment using Earnings Code D5K.

In addition, the system will not include any monies paid using one of the eligible earnings codes listed above for earnings in an eligible bargaining unit where the earnings end date is prior to the pay period begin date for the pay period being processed. It is the agency’s responsibility to determine those monies that should have been included in the deficit reduction amount and submit a negative adjustment using Earnings Code D5K.

A D5K Time Entry transaction should be submitted as follows:

Control-D Report NPAY729

In order to assist agencies in identifying monies that should be included in the adjustment calculation, OSC created Control-D report NPAY729 (Earnings Requiring an Adjustment to the Deficit Reduction Calculation). This report identifies employees who have earnings in Paycheck Data for one or more of the earnings codes listed above in the Calculating the 2012-2013 D8K Amount section provided:

• The earnings end date is less than the pay period begin date associated with the check date on the report; and
• The earnings end date falls within the deficit reduction period; and
• The employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay on the earnings end date for the specified earnings code.

Since the 2011-2012 BU91 Deficit Reduction Amount was calculated on an employee’s annual monies, no adjustments are necessary for this period. Therefore, monies for this period will not appear on the report.

In addition, only employees with Pay Basis Code of FEE or employees hired, rehired, concurrently hired or who transferred into Bargaining Unit 91 with an effective date equal to or greater than the pay period begin date for Institution Pay Period 10L or Administration Pay Period 11L will appear on the report for the 2012-2013 BU91 Deficit Reduction Period. If an agency retroactively hires an employee with an effective date prior to the pay period begin date for Institution Pay Period 10L or Administration Pay Period 11L, the employee will not appear on the report. It is the agency’s responsibility to identify these monies, calculate the deficit reduction and submit the appropriate transaction. Agencies must also confirm that the deficit reduction was not taken automatically in Institution Pay Period 9L or Administration Pay Period 10L before submitting adjustments.

The report is available the Thursday after the payroll period is confirmed.

The report is sorted by Employee Name and then by Earnings Begin Date and Earnings Code. Fields on the report include Emplid, Employee Record Number, Employee Name, Earnings Code, Earnings Begin Date, Earnings End Date, Hours, Earnings Amount and Addl DRP and Description.

Control-D Report NPAY726

In order to assist agencies in identifying monies that should be included in the D2K or D5K Time Entry calculation, OSC created Control-D report NPAY726 (Earnings Requiring a Manual Deficit Reduction Calculation). This report identifies employees who have earnings in Paycheck Data for one or more of the earnings codes listed above in the Manual Set Up of the D2K/D5K Time Entry Record sections provided:

• The earnings end date falls within the deficit reduction period; and
• The employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay on the earnings end date for the specified earnings code.

Since the NPAY726 only reports current pay period information, monies paid using one or more of these earnings codes in a pay period prior to Institution Pay Period 10L or Administration Pay Period 11L, will not appear on the report. It is the agency’s responsibility to identify these monies, calculate the deficit reduction and submit the appropriate transaction.

In addition, if an employee appears on the NPAY726 with Earnings Code(s) ABT, ACC, AED, AFS, AHZ, AIF, AIP, ALP or AMS and the employee’s deficit reduction was taken automatically in Institution Pay Period 9L or Administration Pay Period 10L, no additional deficit reduction should be taken.

The report is available the Thursday after the payroll period is confirmed.

The report is sorted by Employee Name and then by Earnings Begin Date and Earnings Code.  Fields on the report include Emplid, Employee Record Number, Employee Name, Earnings Code, Earnings Begin Date, Earnings End Date, Hours, Earnings Amount and Addl DRP and Description.

Earnings Not Subject to the Deficit Reduction

Monies earned during the SSPU Deficit Reduction Period while in Bargaining Unit 91 in any of the following categories are not subject to the deficit reduction.

• Bonus Pay
• Fringe Benefits
• Health Insurance Opt-Out
• Holiday Pay
• Lost Time
• Lump Sum Payments for Accruals
• Overtime Pay
• Overtime Meals
• Pre-Shift Briefing
• Recall Pay
• Standby Pay
• Statutory Workers’ Compensation Benefits
• Unpaid Leave

Retirement Days Worked

OSC will reduce the days worked reported to the Employee’s Retirement System in accordance with the 2011-2012 Deficit Reduction Plan for Bargaining Unit 91.

OSC will reduce 5 days worked for employees identified as eligible for the deficit reduction for the paychecks dated March 22, 2012 and March 28, 2012. These employees will appear on Control-D report NBEN713 (ERS_DAYS_WRK_ADJ).

Agencies must review the NBEN713 and submit any required days worked adjustments to the Retirement System utilizing RS2050 – Adjustment Report.

Based on the crediting rules that apply to the various tiers, employees should not be impacted by the DRL, as long as there is no other reduction in days worked (i.e. lost time).

Summary of Agency Actions

Agencies are responsible for the following actions:

• Calculate and submit a negative D2K transaction for eligible monies earned during the 2011-2012 SSPU BU91 Deficit Reduction Period and paid using those earnings codes not calculated automatically (monies paid prior to Institution Pay Period 10L or Administration Pay Period 11L will not appear on the NPAY726)
• Calculate and submit a positive D2K transaction when a reduction of the eligible monies included in the original D2K transaction occurs
• Calculate and submit a negative D5K transaction for eligible monies earned during the 2012-2013 SSPU BU91 Deficit Reduction Period and paid using those earnings codes not calculated automatically (monies paid prior to Institution Pay Period 10L or Administration Pay Period 11L will not appear on the NPAY726)
• Calculate and submit a positive D5K transaction when a reduction of the eligible monies included in the original D5K transaction occurs
• Calculate and submit in equal installments those monies provided by OSC that exceed an employee’s retroactive adjustments using D2K and/or D5K
• Create a D8K Additional Pay record for employees hired, rehired, concurrently hired or transferred into Bargaining Unit 91 with an Employee Status of Active or Leave with Pay and an Effective Date equal to or greater than the Institution Pay Period 10L or Administration Pay Period 11L begin date (employees retroactively hired effective prior to Institution Pay Period 10L or Administration Pay Period 11L will not appear on the NPAY729)
• Create a D8K Additional Pay record for employees with a Pay Basis Code equal to FEE beginning in Institution Pay Period 10L or Administration Pay Period 11L
• Restart an existing D8K Additional Pay record if an employee goes on a Leave of Absence and subsequently returns to the payroll
• Calculate and submit a negative D5K transaction when eligible monies are paid outside of the pay period being processed for those employees with a D8K Additional Pay record
• Calculate and submit a positive D5K transaction when an employee is in both Bargaining Unit 91 and another bargaining unit during a pay period and the D8K is calculated on all eligible earnings during the entire pay period
• Insert a row on the Additional Pay page to end date D8K if an employee is no longer in Bargaining Unit 91

Payroll Register and Employee’s Paycheck / Advice

Where appropriate, the following earnings codes and the associated amounts will be displayed on the payroll register. The earnings code description and amount will be displayed on the employee’s paycheck stub or direct deposit advice.

Questions

Questions regarding the SSPU BU91 Deficit Reduction Plan should be directed to the applicable budget examiner at the Division of the Budget.

Questions regarding the accumulation and use of time as it relates to the SSPU BU91 Deficit Reduction Plan should be directed to the Division of Staffing Services at the Department of Civil Service.

Questions regarding the Payroll processing of the SSPU BU91 Deficit Reduction Plan should be directed to the Payroll Earnings mailbox.

Questions regarding the impact on deductions as it relates to the SSPU BU91 Deficit Reduction Plan should be directed to the Payroll Deductions mailbox.

Questions regarding the impact on taxes as it relates to the SSPU BU91 Deficit Reduction Plan should be directed to the Tax and Compliance mailbox.