State Agencies Bulletin No. 815

Cash Merit Awards for Management/Confidential Employees
Date Issued
April 17, 2008


To provide guidelines and processing procedures for Cash Merit Awards for Fiscal Year 2008-09.

Affected Employees

Employees working full-time or part-time in an annual salaried position who are designated:

Management Confidential (M/C) BU06
Management/Confidential SUNY BU13
Division of State Police BU18
Environmental Facilities Corporation BU34
College of Ceramics at Alfred University BU40
Division of Military and Naval Affairs BU46
Temporary Commission of Investigation BU52
Public Employment Relations Board BU66
Legislative Commissions BU79
State University Construction Fund BU96
IOLA (Interest On Lawyer Account) Fund BU98

Elected officials and employees covered by Section 169 of the Executive Law are ineligible for Cash Merit Awards.

Effective Date(s)



Payment of Cash Merit Awards for Management/Confidential employees may be made pursuant to Division of the Budget Bulletin D-1122 dated March 20, 2008 and guidelines provided by Budget Policy and Reporting Manual (BPRM) Section D-280.

Cash Merit Award Guidelines

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

The eligibility period for Cash Merit Awards is 4/1/07 to 3/31/09.  An employee may receive more than one (1) Cash Merit Award during Fiscal Year 2008-09. The cumulative value of all Cash Merit Award payments earned in the eligibility period and paid in Fiscal Year 2008-09 may not exceed 5% of the employee’s basic annual salary for Fiscal Year 2008-09.

Cash Merit Awards to part-time employees are prorated based on the percentage of time worked at the time of eligibility.

Cash Merit Awards to employees on Voluntary Reduction in Work Schedule (VRWS) are not prorated.

Cash Merit Awards to employees on Sick Leave at Half Pay are based on the percentage of time worked prior to the leave.

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.

For eligible employees separated from service prior to 4/1/08, the agency must enter the last date eligible as the Earnings Begin Date.

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

Cash Merit Awards are pensionable.

Computing Award Limits

The cumulative value of Cash Merit Award payments cannot exceed 5% of the employee’s base annual salary at the close of Fiscal Year 2008-09 for awards earned during the current eligibility period.  The payroll system will calculate the award limit at the time of payment based on the salary in effect on the Pay End Date of the pay period submitted, in addition to all payments made from 4/1/08 to 3/31/09.

Agency Actions

Agencies must submit transactions for Cash Merit Award payments for eligible employees through the Time Entry page as follows:

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 5% of the base annual salary)
Comment: If applicable

Control-D Report

The Control-D report, M/C Cash Merit Award Report (NPAY747), is issued monthly. This report identifies all employees who have received a Cash Merit Award (MER) in the current fiscal year.

Payroll Register and Employee’s Paycheck/ Advice

The Earn Code MER and the amount will be displayed on the payroll register. The earnings description, Merit Award M/C, and the amount will be displayed on the employee’s paycheck stub or direct deposit advice.


Questions regarding this bulletin may be directed to the Payroll Audit mailbox