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State Agencies Bulletin No. 1947

Subject
April 2019, April 2020, and April 2021 Public Employees Federation (PEF) Retroactive Salary Increases
Date Issued
October 6, 2021

Purpose

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the April 2019, April 2020, and April 2021 PEF Retroactive Salary Increases and provide instructions for payments not processed automatically.

Affected Employees

Employees in the Professional, Scientific, and Technical Services Unit – BU05 who meet the eligibility criteria are affected.

Background

Chapter 150 of the Laws of 2021, which implemented the 2019-2023 Agreement between the State of New York and PEF, provides for a salary increase of two percent (2.00%) for fiscal years 2019-2020, 2020-2021, and 2021-2022 and includes April 1, 2019 PEF Salary Schedule, April 1, 2020 PEF Salary Schedule, and April 1, 2021 PEF Salary Schedule.

Per the PEF Agreement, seasonal hourly employees who received an increase to minimum wage are eligible to receive the retroactive 2% salary increases provided the increases to minimum wage did not result in a wage increase higher than the negotiated increase. These employees will require additional agency review.

Effective Dates

The April 2019, April 2020, and April 2021 PEF Retroactive Salary Increases will be paid using the following effective dates and check dates:

Pay Cycle/Pay Period Type 2019 Payment Effective Date 2020 Payment Effective Date 2021 Payment Effective Date Check Date
Institution/15 Lag 03/28/2019 03/26/2020 03/25/2021 11/04/2021
Institution/14 Xtra Lag 04/04/2019 04/02/2020 04/01/2021 11/04/2021
Administration/15 Lag 04/04/2019 04/02/2020 04/01/2021 11/10/2021
Administration/15 Xtra Lag 03/28/2019 03/26/2020 03/25/2021 11/10/2021

Eligibility Criteria

The following employees are eligible to receive the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases:

  • Employees with a Comp Rate Code of ANN, 21P or CAL who are in a traineeship (Grade 800)
  • Employees with a Comp Rate Code of ANN, 21P or CAL who are in an NS position (Grade 600)
  • Employees with a Comp Rate Code of ANN, 21P or CAL who are in an NS position (Grade 600) which is equated to a grade (Grade 001-038)
  • Employees with a Comp Rate Code of ANN, 21P or CAL who are in a graded position (Grade 001-038)
  • *Employees with a Comp Rate Code of HRY (Grade 600 or 800)

*Note: The Payroll System is unable to differentiate between seasonal and non-seasonal hourly positions. Hourly employees with an hourly rate that is equal to or less than $15.00 on or after the payment effective date will not be processed automatically and will require agency review to determine payment eligibility.

If an employee is in a seasonal hourly position and the hourly rate is equal to one of the minimum wage rates in effect on the effective date of the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases (See Effective Dates listed above), then the employee may not be eligible to receive the increase. Seasonal employees who receive an increase to minimum wage are eligible to receive the salary increase provided the increase to minimum wage did not result in a wage increase higher than the negotiated increase.

Hourly employees who are not in seasonal hourly positions are eligible for the increases but will not be processed automatically if their hourly rate is equal to or less than $15.00.

Agencies must determine eligibility and submit appropriate Pay Rate Changes for eligible employees with hourly rates equal to or less than $15.00. See Control D Report Available Prior to Processing and Agency Actions – Beginning Institution or Administration Pay Period 16L.

Employees with a Comp Rate Code of FEE are not eligible for the salary increase unless the employee is budgeted as per diem but is paid using FEE.

Control-D Report Available Prior to Processing

The following Control-D report will be available for agency use on 10/07/2021 (Institution) and 10/14/2021 (Administration). This will give agencies time to correct employees’ records, if necessary, prior to the automatic processing of the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases. The report will be sorted by Department ID, then by employee name in alphabetical order.

NHRP709 – Mass Salary Increase Exception Report

This report is a preliminary listing of employees who appear ineligible to receive the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases based on information available as of the date the report is produced. Included on the report is one or more of the following messages which identifies the reason(s) the employee’s record will not be updated:

  • NYS Position Has Both Equated Grade and NTE – If the employee’s Grade on the Position Data page (based on the NYS Position Number) is equal to 600 and a value exists in both the Equated to Grade field and the Approved Salary Rate field.
  • Position and Job Do Not Match - If the Position Number equals the NYS Position Number on the employee’s Job Data page but the Bargaining Unit, Salary Administration Plan or Grade on the Job Data page and the Position Data page are not equal.
  • Increment Code Missing – If the Grade on the Position Data page (based on the NYS Position Number) is equal to 001-037 or 600 with a value of 001-037 in the Equated to Grade field, and the Comp Rate Code is ANN, CAL or 21P and the increment code on the employee’s Job Data page is blank or ‘0000.’
  • *Increment Code Invalid – If the Grade on the Position Data page (based on the NYS Position Number) is equal to 001-037 or 600 with a value of 001-037 in the Equated to Grade field, and the Comp Rate Code is ANN, CAL or 21P and the increment code on the employee’s Job Data page is other than 0001, 0003, 0004, 1001, 1003, 1004, 2222, 7777, 19XX, 20XX, or XX10.

*Note: Increment Code 0069 is now considered invalid since the new process was implement in January 2020 to indicate an employee’s position was downward reallocated (refer to Payroll Bulletin 1811). Employees with this Increment Code will be included on the Exception Report but will receive the 2% increase. (See OSC Actions)

  • Increment Code Requires Manual Calculation – If the increment code on the employee’s Job Data page is 2222.
  • Sal Below Hiring Rate – If the Grade on the Position Data page (based on the NYS Position Number) is equal to 001-037 or 600 with a value of 001-037 in the Equated to Grade field, and the Comp Rate Code is ANN, CAL or 21P and the employee’s salary on any of the Job Data rows being evaluated is less than the Hiring Rate for the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule.
  • Empl Req Review to Determine if Elig for Incr – If hourly employee’s compensation rate is <= $15.00.

If an employee appears on this report but is due a salary increase, the agency must take the following action:

  • Submit the appropriate transaction(s) on the Job Action Requests page to correct the information on the Job Data row(s).
    • If the row(s) is corrected prior to Administration Pay Period 15L or Institution Pay Period 15L (except for hourly compensation rate that is <= $15.00 (see Agency Actions Beginning Administration or Institution Pay Period 16L), the automatic salary increase will be processed.
  • Submit a Position Change Request to the Position Management Unit if the position information is incorrect on the Position Data page in PayServ but is correct in NYSTEP.
    • The position will be updated to reflect the change and the automatic salary increase will be processed provided the agency’s position request contains the same information as the position information in NYSTEP.

OSC Actions

OSC will process the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases for the following employees:

  • If the employee meets the eligibility criteria and has a Payroll Status of Active, Leave With Pay or Leave of Absence due to a Workers’ Compensation Leave (Action/Reason code of Leave of Absence/WCL, WDL, WPS or WSP) on the payment effective date, OSC will automatically insert a row on the employee’s Job Data page using the Action/Reason Code of Pay Rate Change/SAC (Mass Salary Increase) using the following effective dates:
    • 2019 2% Increase: Effective 03/28/2019 (Institution) or 04/04/2019 (Administration)
    • 2020 2% Increase: Effective 03/26/2020 (Institution) or 04/02/2020 (Administration)
    • 2021 2% Increase: Effective 03/25/2021 (Institution) or 04/01/2021 (Administration)
  • If the employee meets the eligibility criteria but has a Payroll Status of Terminated, Retired, or Leave of Absence (not related to a Workers’ Compensation Leave) on the payment effective date and returns to Active status in an eligible position, OSC will automatically insert a row on the employee’s Job Data page using:
    • Action/Reason code of Pay Rate Change/CSL () if the Comp Rate Code is ANN, 21P, or CAL
    • Action/Reason Code of Pay Rate Change/CRT (Chg Rate) if the Comp Rate Code is HRY.

The row will be inserted using the effective date of the Rehire or Return from Leave action.

  • If the employee is newly hired or transfers into an eligible position after the payment effective date, OSC will automatically insert a row on the employee’s Job Data page using:
    • Action/Reason Code of Pay Rate Change/CSL (Cor Sal) if the Comp Rate Code is ANN, 21P or CAL
    • Action/Reason Code of Pay Rate Change/CRT (Chg Rate) if the Comp Rate Code is HRY.

The row will be inserted using the effective date of the Hire, Position Change or Transfer action.

  • OSC will automatically insert a row on the employee’s Job Data page using:
    • Action/Reason Code of Pay Rate Change/CSL (Cor Sal) if the Comp Rate Code is ANN, 21P or CAL or
    • Action/Reason Code of Pay Rate Change/CRT (Chg Rate) if the Comp Rate Code is HRY for all subsequent rows provided the employee remains in an eligible position.

Calculating the New Compensation Rate

The salary on each inserted row will be calculated as follows:

2019 Retroactive 2% Increase Processing

  • If the employee has a Comp Rate Code of HRY and a Grade equal to 600 or 800 and the hourly rate in effect is greater than $15.00, OSC will automatically increase the salary by applying 2.00% rounded to the nearest cent.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL and a Grade equal to 038, 600 (not equated to a grade) or 800, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL and a Grade equal to 600 with an equated grade equal to 038, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037 and Increment Code 0069, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 001-037 and Increment Code 0069, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2019 Salary Schedule.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will process as follows:
    • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2019 Salary Schedule, OSC will reduce the salary to the Job Rate.
    • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2019 Salary Schedule, whichever is greater.
  • If the employee has a Comp Rate Code of ANN, 21P or CAL, a Grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2019 Salary Schedule.
  • If the employee has a Comp Rate Code of ANN, 21P or CAL, a Grade equal to 001-037 and an increment code other than 0069 or 2222 and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will process as follows:
    • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2019 Salary Schedule, OSC will reduce the salary to the Job Rate.
    • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2018 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2019 Salary Schedule, whichever is greater.

2020 Retroactive 2% Increase Processing

  • If the employee has a Comp Rate Code of HRY, a Grade equal to 600 or 800, and the hourly rate in effect is greater than $15.00, OSC will automatically increase the salary by applying 2.00% rounded to the nearest cent.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL and a Grade equal to 038, 600 (not equated to a grade) or 800, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL and a Grade equal to 600 with an equated grade equal to 038, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037 and Increment Code 0069, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 001-037, and Increment Code 0069, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P or CAL, a Grade equal to 600 with an equated grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2020 Salary Schedule.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will process as follows:
    • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2020 Salary Schedule, OSC will reduce the salary to the Job Rate.
    • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2020 Salary Schedule, whichever is greater.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2020 Salary Schedule.
  • If the employee has a Comp Rate Code of ANN, 21P or CAL, a Grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will process as follows:
    • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2020 Salary Schedule, OSC will reduce the salary to the Job Rate.
    • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2019 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2020 Salary Schedule, whichever is greater.

2021 Retroactive 2% Increase Processing

  • If the employee has a Comp Rate Code of HRY and a Grade equal to 600 or 800 and the hourly rate in effect is greater than $15.00, OSC will automatically increase the salary by applying 2.00% rounded to the nearest cent.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL and a Grade equal to 038, 600 (not equated to a grade), or 800, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL and a Grade equal to 600 with an equated grade equal to 038, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037, and Increment Code 0069, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 001-037, and Increment Code 0069, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2021 Salary Schedule.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 600 with an equated grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will process as follows:
    • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2021 Salary Schedule, OSC will reduce the salary to the Job Rate.
    • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2021 Salary Schedule, whichever is greater.
  • If the employee has a Comp Rate Code of ANN, 21P or CAL, a Grade equal to 001-037 and an increment code other than 0069 or 2222 and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2021 Salary Schedule.
  • If the employee has a Comp Rate Code of ANN, 21P, or CAL, a Grade equal to 001-037, an increment code other than 0069 or 2222, and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will process as follows:
    • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2021 Salary Schedule, OSC will reduce the salary to the Job Rate.
    • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2020 Salary Schedule, OSC will automatically increase the salary by applying 2.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2021 Salary Schedule, whichever is greater.

Exceptions

Employees in an hourly position (Grade 600) with an hourly rate in effect that is equal to or less than $15.00 on or after the payment effective date will not be processed automatically.

Employees in a composite position (identified by Increment Code 2222) will not be processed automatically.

Employees Who Switch Cycles

Employees who are on the Institution cycle on the payment effective date but are on the Administration cycle on the processing date will be processed as follows:

  • Effective dated rows on the Institution cycle will be updated when the program runs for the Institution cycle.
  • Effective dated rows on the Administration cycle will be updated when the program runs for the Administration cycle.
  • All retroactive adjustments will be paid in the Administration check dated 11/10/2021.

Employees who are on the Administration cycle on the payment effective date but are on the Institution cycle on the processing date will be processed as follows:

  • Effective dated rows on the Administration cycle will be updated when the program runs for the Administration cycle. The retroactive adjustment will be paid in the Institution check dated 11/18/2021.
  • Effective date rows on the Institution cycle will be updated when the program runs for the Institution cycle. The retroactive adjustment will be paid in the Institution check dates 11/04/2021.

Control-D Reports Available After Processing

The following Control-D reports will be available for agency review after the automatic increases have been processed. All reports will be sorted by Department ID, then by employee name in alphabetical order.

NHRP704 – Mass Salary Increase Report

This report identifies all employees who received the automatic April 2019, April 2020, or April 2021 PEF Retroactive Salary Increases and includes all employees’ salaries that were increased in an eligible bargaining unit.

NHRP709 – Mass Salary Increase Exception Report

This report identifies employees who did not receive the automatic April 2019, April 2020, or April 2021 Retroactive Salary Increases. Included on the report is one or more of the following messages which identifies the reason(s) the employee’s record was not updated:

  • NYS Position Has Both Equated Grade and NTE
  • Position and Job Do Not Match
  • Increment Code Missing
  • Increment Code Invalid
  • Inc Code Req Review
  • Sal Below Hiring Rate
  • Empl Req Review to Determine if Elig for Incr

See Control-D Report Available Prior to Processing for an explanation of these messages.

Agency Actions – Beginning in Institution or Administration Pay Period 15L

The following procedures must be used by the agency when submitting transactions in Institution Pay Period or Administration Pay Period 15L:

For pay changes, positions changes and transfers requested on the Job Action Requests or Transfer Requests page with an effective date on or after 03/28/2019 (Institution) or 04/04/2019 (Administration):

  • The agency must not include the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases in the salary reported in the Pay Rate field. The salary must be calculated using the 04/01/2018 Salary Schedule.

Exception: Agencies may submit transactions in Institution or Administration Pay Period 15L to pay the following employee retroactive salary increase(s):

  • Employees in a composite position (identified by Increment Code 2222).

Composite Positions

Beginning Institution or Administration Pay Period 15L, agencies must review employees in composite positions (identified by Increment Code 2222) and submit a Pay Change on the Job Action Requests page using the appropriate Reason Code (see below) to pay salary increase. Information regarding the composite position must be included on the General Comments page.

To Process Payment Manually

The following Action/Reason Code(s) must be used to pay the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases to eligible employees not processed automatically:

  • Reason Code SAC (Mass Salary Increase) – For transactions effective:
    • 2019 Increase –effective on 03/28/2019 (Institution) or 04/04/2019 (Administration)
    • 2020 Increase –effective on 03/26/2020 (Institution) or 04/02/2020 (Administration)
    • 2021 Increase – effective on 03/25/2021 (Institution) or 04/01/2021 (Administration).
  • Reason Code CSL (Cor Sal) for ANN Comp Rate or CRT (Chg Rate) for HRY Comp Rate – For transactions effective other than the effective dates of salary increases :
    • 2019 Increase –effective on 03/28/2019 (Institution) or 04/04/2019 (Administration)
    • 2020 Increase –effective on 03/26/2020 (Institution) or 04/02/2020 (Administration)
    • 2021 Increase – effective on 03/25/2021 (Institution) or 04/01/2021 (Administration).

Administration Agencies Only

New Hire transactions submitted in Administration Pay Period 15L must use the Hiring Rate of the employee’s grade on the effective date from the 04/01/2018 PEF Salary Schedule. The 04/01/2019, 04/01/2020, and 04/01/2021 PEF Salary Schedules are loaded in PayServ as part of processing for the Institution cycle, and the agency will receive the automatic validation salary warning message, “Requested salary rate must be at the hiring rate when Action of PAY and Reason of NEW is used”. Please ignore this warning message.

Agency Actions – Beginning in Institution or Administration Pay Period 16L

Employees Who Receive an Increased Hiring Rate Effective On or After Payment Effective Date

Employees who receive an Increased Hiring Rate effective on or after the payment effective date (03/28/2019, 03/26/2020, or 03/25/2021 (Institution) or 04/04/2019, 04/02/2020, or 04/01/2021 (Administration)) may not be entitled to have the increase applied to their entire salary. OSC will manually update salaries after the automatic increase is applied. If any additional corrections are needed, agencies must submit transactions as soon as possible to avoid an overpayment to employee.

Employees Who Appeared on the NHRP709 – Mass Salary Increase Exception Report

Employees who appeared on the NHRP709 Mass Salary Increase Exception Report, made available after processing, did not automatically receive the April 2019, April 2020, or April 2021 PEF Retroactive Salary Increases. Agencies must submit appropriate transactions to correct employee’s record and submit a Pay Change on the Job Action Requests page using appropriate Reason Code to pay salary increase beginning in Institution or Administration Pay Period 16L.

Employees with a Compensation Rate Equal To or Less Than $15/hr

Beginning in Institution or Administration Pay Period 16L, agencies must review records of employees with an hourly rate in effect equal to or less than $15.00 at any time on or after the payment effective date of the salary increase to determine if employee is seasonal and their compensation represents minimum wage in effect for their location.

For each effective dated row where employee’s rate in effect is other than minimum wage, agencies must submit a Pay Change on the Job Action Requests page using the appropriate Reason code (see below) to pay the salary increase.

Note: Agencies must not submit transactions to pay retroactive salary increases for effective dates with a compensation rate greater than $15.00/hr. These effective dated rows will be processed automatically by OSC.

Process Payment Manually

See Agency Actions –Institution or Administration Pay Period 15L for instructions on submitting pay changes.

Geographic Pay Differential (GEO) and/or Occupational Pay Differential (OPD)

Agencies must review employees receiving GEO and/or OPD to determine if employees’ GEO and/or OPD pay needs to be updated as a result of the April 2019, April 2020, or April 2021 PEF Retroactive Salary Increases. Agencies must insert a new row on the Additional Pay page using the appropriate effective date (as listed in Effective Dates above) and the new GEO and/or OPD amount.

Automatic Retroactive Processing

OSC will automatically calculate retroactive adjustments for regular and Time Entry earnings calculated by the system based on annual salary, such as OT for Annuals (OTA) and Holiday Pay (HPA), resulting from payment of the April 2019, April 2020, and/or April 2021 PEF Retroactive Salary Increases.

If an employee receives a payment and has worked in more than one agency, but has been paid by all agencies in the same Employee Record Number since the effective date of the payment, all retroactive adjustments will be paid in the most current agency.

If an employee receives a payment, has worked in more than one agency, and has been paid in more than one Employee Record Number since the effective date of the payment, the retroactive adjustments will be paid in the most current agency of the Employee Record Number to which the payment was made.

Agency Actions- Retroactive Processing

Reporting Retroactive Adjustments

Time Entry earnings codes submitted with an amount will not be adjusted automatically. Therefore, beginning in Institution or Administration Pay Period 16L, 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, 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 payment, the payroll system does not consider the AC-230 when calculating 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 2080 (OCS), 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 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 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 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

When an adjustment is needed for COVID-19 overtime such as CVO, ARC must be used. When an adjustment is needed for non-COVID-19 related overtime or recall such as OTT, ARO must be entered. Please refer to Payroll Bulletin No. 1893 for more information. Agencies must continue to use AJR for all other override Time Entry Earnings Codes requiring a manual adjustment as a result of a retro salary increase.

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, ARC, or ARO:

Earnings Begin Date: The first date included in the adjustment
Earnings End Date: The last date included in the adjustment
Earn Code: AJR, ARC, or ARO
Amount: Amount to be adjusted
Comments: An explanation of the adjustment

Military Stipend Leave

OSC will recalculate the military stipend amount for employees placed on a Paid or Unpaid Military Stipend Leave on or after the effective date of the payment as the result of new military orders.

  • If the employee received a stipend, OSC will insert a row on the employee’s Job Data page, effective the date the employee is entitled to the increase, using the Action/Reason Code of Pay Rate Change/MSC (Military Stipend Change) and will increase the employee’s biweekly stipend amount. In addition, updates will be made to all subsequent rows requiring an increased biweekly stipend amount.
  • If the employee did not receive a stipend but becomes eligible for a stipend as a result of the payment, OSC will insert the following in PayServ:
    • A row on the employee’s Job Data page, effective the date the employee is entitled to a stipend, using the Action/Reason Code of Paid Leave of Absence/MLS (Mil Stip) and the new biweekly stipend amount.
    • A row on the employee’s Job Data page for each affected subsequent row using the Action/Reason Code of Pay Rate Change/MSC (Military Stipend Change) and the new biweekly stipend amount.
    • A row on the Time Entry page using the Earnings Code MSP (Military Stipend Payment) to pay the stipend for each pay period the employee is eligible.
    • Any additional adjustment required due to the increased biweekly stipend amount, that will not be calculated automatically, will be reported by OSC on the Time Entry page using the Earnings Code AMS (Adjust Military Stipend).

General Deductions

All general deductions for employees with Payroll Status of Terminated, Retired, or Deceased will be automatically canceled by OSC with the exception of percentage based dues and the following:

Code Description
406 PEF Strike/Discip Fine
410 Health Care Spending Account
416 Deferred Comp
420 NY Dependent Care Contribution
425 Repay State Loans/Debt
426 Higher Ed Repay State Loan
428 Dependent Care
433 Total Unemployment Ins Owed
442 Pre-Tax Adoption
500 Medicare Deficiency
501 Social Security Deficiency
502 NYS SS/Medicare Deficiency
GARNSH Garnishments
HIATRG Regular After Tax Health
HIATSP Special After Tax Health Adj
HIBTRG Regular Before Tax Health
HIBTSP Special Before Tax Health Adj

Tax Information

These monies are taxable income subject to all employment taxes and income taxes, will be included in the employee’s taxable gross, and reported on the employee’s Form W-2.

The adjustments (AJR, ARC, ARO, and Retro (RXX)) are supplemental taxable income and will be included in the employee’s taxable gross subject to all employment and income taxes.

Federal, State, and New York City income tax withholding will be calculated using the Aggregate method. Yonkers income tax withholding will be calculated using the Flat Rate method (2.30815% for Yonkers residents and 0.50% for Yonkers non-residents).

Special Wage Payments for Individuals Who Filed for Retirement Social Security Benefits

Per Internal Revenue Service Publication 9857, OSC will report to the Social Security Administration (SSA) all retro payments made to individuals who have filed for Social Security benefits.

Since PayServ does not include this information, OSC will mail a Request for Special Wage Payment Report to inactive individuals who are 62 or older in the calendar year and active employees with the New York Retiree Indicator checked in Modify a Person who receive the retroactive payment. Recipients of this mailing will be asked to fill out and return this request to OSC for inclusion on the Special Wage Payment report to SSA. This report will be submitted to SSA after the close of the 2021 tax year.

It is important that agencies ensure the New York Retiree Indicator box is checked for rehired retirees. Please see Payroll Bulletin No. 1728 for further details on the New York Retiree Indicator box.

Payroll Register and Employee’s Paycheck/Advice

All retroactive adjustments will be displayed on the Payroll Register using the appropriate Earnings Code and amount paid. Retroactive adjustments will also be displayed on employees’ paycheck stub or direct deposit advice using the appropriate Earnings Description and amount paid, unless the number of Earnings Codes exceed 13. Agencies should utilize Locked Query LQ_PCD_PAYCHECK_EARNINGS_BY_ID to identify a complete list of regular earnings and retroactive adjustments if there are more than 13 Earnings Codes.

Undeliverable Checks

When a valid payroll check is undeliverable due to the agency’s inability to locate the employee, the agency should follow the Agency Actions identified in Payroll Bulletin No. 1786.

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 this bulletin may be directed to the Payroll Earnings mailbox.

Questions regarding position change requests may be directed to the Position Management mailbox.

Questions regarding military information may be directed to the Military Stipend mailbox.

Questions regarding general deductions may be directed to the Payroll Deduction mailbox.