State Agencies Bulletin No. 248

Cash Merit Awards For Management/Confidential Employees
Date Issued
April 6, 2001


To provide guidelines and processing procedures for Merit Awards for the 2001/2002 fiscal year.

Affected Employees

Employees working full or part-time in annual salaried positions designated Management/Confidential (NU06), employees of Public Employment Relations Board in NU66, and employees of the Division of Military and Naval Affairs in NU46, except elected officials and employees covered by Section 169 of the Executive Law.

Effective Date



Budget Bulletin D-1105, dated March 27, 2001, entitled '2001-2002 Performance Advances, Merit Awards and Longevity Payments'.

Budget Policy and reporting Manual Item D-280, dated 6/26/99, entitled "Performance Advances and Merit Awards for Managerial or Confidential Employees".

Federal Fair Labor Standards Act, 29 U.S.C. Section 207 (e)(3)(a); 29 C.F.R. Section 778.211, "Payments That May Be Excluded From the 'Regular Rate'".

Cash Merit Award Guidelines

The Cash Merit Award is a lump sum payment which is not added to the employee's basic annual salary.

Employees must have been paid from an M/C position during the current or prior fiscal year in order to be eligible for a cash Merit Award.

Eligible employees may receive cash Merit Awards at any time during the fiscal year.

An individual employee may receive more than one cash Merit Award during this fiscal year assuming the cumulative value does not exceed 3.5% of the employee's basic annual salary.

Merit Awards to full or part-time employees are pro-rated based on the percentage of time worked at the time of eligibility.

Merit Awards to employees on voluntary reduction in work schedule (VRWS) are not pro-rated.

Merit Awards to employees on sick leave at half pay are based on the percentage of time worked prior to sick leave at half pay.

Employees on leave without pay and employees who have separated from the agency are eligible for cash Merit Awards at the discretion of the agency.

Cash Merit Awards are not included in the calculation of overtime.

Computing Award Limits

The cumulative value of cash Merit Award payments cannot exceed 3.5% of the employee's basic annual salary at the close of the fiscal year (2001-2002).

Processing Instructions

Submit transactions for Merit Award payments for eligible employees through the Time Entry panel:

Earnings Begin Date: Enter the date of eligibility in the M/C position
Earnings End Date: Enter the same date as the Begin Date
Earn Code: MER
Amount: Enter payment amount (not to exceed 3.5% of base annual salary)
Comment: If applicable

Payroll Register and Employee Paycheck

The earn code MRT AWD MC and the amount will be displayed on the payroll register and the employee's check or direct deposit advice.

Reveal Report

A Reveal Report, M/C Cash Merit Award Report (NPAY747), is issued monthly. This report will identify all employees who have received a Merit Award (MER Earnings Code) in the fiscal year.


Questions regarding the Merit Award payments may be directed to the Payroll Audit mailbox.

Questions regarding the Reveal Report may be directed to the Payroll Deductions mailbox.