State Agencies Bulletin No. 482

Subject
Cash Merit Awards for Management/Confidential Employees
Date Issued
May 11, 2004

Purpose

To provide guidelines and processing procedures for Cash Merit Awards for the 2003-2004 and 2004-2005 Fiscal Years.

Affected Employees

Employees working full-time or part-time in an annual salaried position designated Management/Confidential (BU-06), as well as employees of:

  • Division of State Police (BU-18)
  • Environmental Facilities Corporation (BU-34)
  • Division of Military and Naval Affairs (BU-46)
  • Temporary Commission of Investigation (BU-52)
  • Public Employment Relations Board (BU-66)
  • Legislative Commissions (BU-79)
  • State University Construction Fund (BU-96)

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

Effective Date(s)

Immediately

Background

Payment of Cash Merit Awards for Management/Confidential employees may be made pursuant to Division of the Budget Bulletin D-1111 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 4/01/03 to 3/31/05 . An employee may receive more than one Cash Merit Award during Fiscal Year 4/01/04-3/31/05. The cumulative value of all Cash Merit Award payments earned in the eligibility period must be paid in Fiscal Year 2004-2005 and may not exceed 3.5% of the employee's basic annual salary for Fiscal Year 2004-2005.

Cash Merit Awards to full-time or part-time employees are pro-rated 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 pro-rated.

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 4/01/04 , the agency must enter 4/01/04 as the Earnings Begin Date.

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 base annual salary. 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 4/01/04-3/31/05.

Agency Actions

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

Earnings Begin Date: Enter the date of eligibility in the M/C position (4/01/04 or later)
Earnings End Date: Enter the same date as the Begin date
Earn Code: MER
Amount: Enter payment amount (not to exceed 3.5% of the base annual salary
Comment: If applicable

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 the employee's paycheck or direct deposit advice.

Control D Report

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

Questions

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