Purpose

To inform agencies of OSC's automatic processing of the April 2016 PEF LLS payment for newly eligible employees and to provide instructions for payments not processed automatically.

Affected Employees

Employees in the Professional, Scientific and Technical Services Unit – BU 05 with an Increment Code of 0510, 2006, 1010 or 2011 who meet the eligibility criteria.

Background

Due to the expiration of the previous contract, Longevity Lump Sum payments were not paid in April 2016 to PEF employees who became eligible for a five (5) or ten (10) year payment for the first time on or after March 31, 2016. Per Chapter 233 of the Laws of 2016 which implemented the 2015-2016 Agreement between the State of New York and the Public Employees Federation (PEF), these employees now will be eligible to receive the 2016 Longevity Lump Sum (LLS) payment.

Effective Date(s)

Payments will be processed in a separate check dated 08/24/2016 (Administration Pay Period 9L) and 09/01/2016 (Institution Pay Period 10L). There is no direct deposit for this payment.

Eligibility Criteria

Employees in graded positions (Grades 001-037) and NS positions (Grade 600) which are equated to grade (Grades 001-037) are eligible for the April 2016 PEF LLS payment provided the employee:

• Is Active, on a Leave With Pay or on an Unpaid Military Stipend Leave, in a BU05 position; and
• Had a Pay Basis Code of ANN, CAL, 21P or BIW (only if the employee is on a Paid Military Stipend Leave) on 03/31/2016; and
• As of March 31, 2016, had five (5) or more or ten (10) or more years of continuous service* at an annual salary equal to or greater than the Job Rate of the employee’s current grade; and
• Did not receive an "Unsatisfactory" evaluation during the rating period January 1 to December 31, 2015. Employees who were not rated during this 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.

Please refer to Payroll Bulletin No. 1475 for further information and guidance for determining eligibility for the April 2016 LLS payment for employees in the following scenarios.

• Employees who may become eligible for the April 2016 PEF LLS payment upon processing of the October 2015 or April 2016 PEF Performance Advance which resulted in Job Rate:
  • Upward Reallocation
  • Lateral position change from a Non-PEF position where the employee’s salary was equal to or greater than job rate to a PEF position with a higher job rate.

• Employees who will become eligible for the April 2016 PEF LLS payment during 2016-2017:
  • Leave of Absence/Preferred List on 03/31/2016
  • Demotions after 03/31/2016

Control-D Report Available Prior to and After Processing

Prior to the automatic processing of the April 2016 PEF LLS payment for newly eligible employees, the following report was made available on 07/22/2016 for agency use:

NPAY756 PS&T Longevity Eligibility Listing

This reportis a preliminary listing of employees who appear eligible for the five (5) year or ten (10) year LLS payment as of March 31, 2016.

Agencies should review this listing carefully, paying particular attention to employees who are ineligible due to an “Unsatisfactory” evaluation between January 1 and December 31, 2015.

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).
  • Eligible employees who received a downward reallocation (identified by Increment Code 0069).
• Delete employees who should not appear on the listing, such as:
  • Employees with an “Unsatisfactory” evaluation during the period stated above. In addition, in order to prevent the payment, the agency must submit a Data Chg on the Job Action Requests page using the employee’s last rating date as the effective date, the Reason code USP (Unsat Perf) 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.

• Corrections should be submitted as soon as possible and must be received no later than 08/08/2016.  Please fax corrections to (518) 474-2601 and send an email to the Payroll Earnings mailbox ([email protected]) including the Department ID and ‘LLS Correction Sheet’ in the Subject line to inform OSC that a correction has been faxed.

OSC Actions- Automatic Processing

For employees with an Increment Code of 2011 or 1010

OSC will process the April 2016 PEF LLS payment for those employees who meet the eligibility criteria by inserting a row on the employee’s Additional Pay page to make the payment using the Earnings Code LLS provided the employee did not already receive a 2016 LLS payment. The payment amount is $1,250 or a prorated amount, as described below:

• Employees who were on a Voluntary Reduction in Work Schedule (VRWS) on 03/31/2016 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 were on a Leave With Pay with an Action/Reason code of Paid Leave of Absence/SKL (Sick Lv) on 03/31/2016 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 03/31/2016. 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 03/31/2016.

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

For employees with an Increment Code of 2006 or 0510

If a 2016 LLS row already exists on the employee’s Additional Pay page and the amount in the Annual Additional Earnings field is less than or equal to $1,250, OSC will automatically double the earnings amount and pay the difference between the new Annual Additional Earnings and the existing Goal Balance.

The existing Additional Pay page will be updated for eligible employees with the following:

OSC Actions- Post Payment

After processing this payment, OSC will review the salaries of affected employees who are promoted on or after April 1, 2016 to determine if a salary correction is needed.

Agency Actions- Payments Not Paid Automatically

After the automatic payment has been processed, agencies must enter the following information into the Additional Pay page to pay an eligible employee who has not received a 2016 LLS payment. Transactions should be submitted beginning in Administration Pay Period 10L or Institution Pay Period 11L.

• Increment Code 0069 on 03/31/2016:  Agencies must submit transactions for eligible employees whose position on 03/31/2016 was previously downward reallocated. The effective date of the LLS payment should be 04/01/2016. 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 03/31/2016: Agencies must submit transactions for eligible employees who are in a composite position on 03/31/2016. The effective date of the LLS payment should be 04/01/2016. 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 03/31/2016. Information regarding the composite position must be included on the General Comments page.
• Upward Reallocation: Agencies must submit transactions for eligible employees whose position on 03/31/2016 was previously upward reallocated and whose salary upon application of the October 2015 or April 2016 PEF Performance Advance is equal to the Job Rate of the reallocated position as explained above. The effective date of the LLS payment should be 04/01/2016. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s adjusted increment code indicating job rate credit.
• Lateral Position Change: Agencies must submit transactions for eligible employees with a salary equal to or greater than the Job Rate in a non-PEF position, who had a lateral position change to a PEF position with a higher Job Rate and whose salary upon application of the October 2015 or April 2016 PEF Performance Advance is equal to the Job Rate in the PEF position as explained above. The effective date of the LLS payment should be 04/01/2016. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s adjusted increment code indicating job rate credit.
• Leave of Absence on 03/31/16: Agencies must submit transactions for employees who are otherwise eligible on 03/31/2016 to receive the payment but whose Payroll Status is Leave of Absence (except those on Unpaid Military Stipend Leave) and who return from such leave between 04/01/2016 and 03/31/2017 as explained above.Transactions should be submitted in the pay period the return from leave is processed or in Administration Pay Period 10L or Institution Pay Period 11L if the employee has already returned; the effective date of the LLS payment should be the same as the return from leave effective date. 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 in effect on 03/31/2016 and could impact the employee’s April 2016 PEF LLS eligibility.

• Preferred List on 03/31/2016: Agencies must submit transactions for employees who are otherwise eligible on 03/31/2016 to receive the payment but who are on a preferred list and who are appointed to an eligible position between 04/01/2016 and 03/31/2017 as explained above. Transactions should be submitted in the pay period the appointment is processed or in Administration or Institution Pay Period 10L if the employee has already been appointed; the effective date of the LLS payment should be the same as the appointment effective date. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the percentage associated with the eligible position.

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 2016 PEF LLS eligibility.

• Demotions after 03/31/2016: Agencies must submit transactions for employees who are ineligible for the payment on 03/31/2016 but become eligible on or before 03/31/2017 due to a demotion as explained above. Transactions should be submitted after the employee completes 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 the demotion. Information regarding the reason the demotion occurred must be included on the General Comments page.

To Correct an Increment Code

If the employee did not receive an automatic LLS payment or the payment amount was incorrect 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.

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 > Payments\Withholdings > Overtime Compensation). The April 2016 PEF 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 PEF 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 was appointed to an ineligible position prior to or in Administration Pay Period 9L or Institution Pay Period 10L, OSC will update the End Date of those transactions processed automatically to reflect the last date the employee was in an eligible position. If the appointment was made after Administration Pay Period 9L or Institution Pay Period 10L, 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.

Retroactive Adjustment

OSC will automatically calculate retroactive adjustments for overtime earned on or after the OT Eff Date associated with the April 2016 PEF LLS payment and paid prior to the automatic processing of the April 2016 PEF LLS payment.

Agency Actions- Retroactive Processing

Time Entry earnings codes that are submitted with an amount will not be adjusted automatically. Therefore, beginning in Institution or Administration Pay Period 10L, 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.

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 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.