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Date: November 9, 2004 Bulletin Number: 514
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Subject

2004 Management/Confidential (M/C) Vacation Exchange Payment

Purpose
To provide agencies with information and procedures regarding the processing of M/C Vacation Exchange payments.
Affected Employees

M/C employees in Bargaining Units 06, 13, 18, 40, 46, 52, 66, 96, and also those employees in Bargaining Unit 79 whose agency has elected to participate in the Vacation Exchange Program.

Officers and employees whose salaries are prescribed by Section 169 of the Executive Law or whose salaries were prescribed prior to the enactment of Chapter 55 of the Laws of 1979 are ineligible for the Vacation Exchange payment.

Effective Date(s)
Vacation Exchange payments will be made in a separate check dated November 24, 2004 for employees in Institution agencies and December 1, 2004 for employees in Administration agencies.

Background

Chapter 103, Section 20 of the Laws of 2004 provides for a cash payment to employees in any of the above named bargaining units who earn and accumulate vacation credits and elect to exchange such credits in units of full days up to a maximum of five (5) days. At the time of such election, the credits must total thirty-five (35) or more days.

The election of the Vacation Exchange must have been made by the last day of the pay period in which August 03, 2004 fell (8/11/04 for Administration agencies and 8/04/04 for Institution agencies).

Eligible employees who were part-time during the filing period and had the appropriate number of prorated vacation credits may have requested to exchange a prorated number of vacation credits, based on the percentage of time worked, in exchange for a Vacation Exchange lump sum payment.

Example: An employee who was 50% during the filing period and who had at least 17.5 days of vacation credits may request a maximum of 2.5 full days of Vacation Exchange.

Eligible employees, who were on Voluntary Reduction at the time the request was filed, are eligible for a maximum of five (5) full days of Vacation Exchange.

Calculation of Payment

The Vacation Exchange payment is based on the salary (including additional salary factors) in effect on 10/1/04 provided the employee is Active on the payroll (including employees who are on a Paid Leave of Absence) and in an M/C bargaining unit on 10/1/04.

If an employee is Inactive, on Leave Without Pay, or in a bargaining unit that is other than M/C on 10/1/04, the Vacation Exchange payment is based on the salary (including additional salary factors) in effect on the last day prior to 10/1/04 that the employee was last paid from an M/C position.

Agency Actions

Effective Pay Periods 16L and 17C for Institution and 17L and 18C for Administration, the agency must use the following procedures when reporting the Vacation Exchange payments. The payment is to be submitted by the agency in which the employee is Active in an M/C position on 10/1/04, with the exception of an employee who had met the eligibility criteria in August and has since left the M/C position. In that instance, the payment is to be submitted by the agency where the employee earned eligibility. The effective date is the last date in the M/C position.

The agency must use the following procedures when reporting the Vacation Exchange on the Time Entry page:

Salaried Employees

Earn Code: VEX (Vacation Exchange)
   
Earnings Begin Date: For employees who are Active on the payroll in an M/C position on 10/1/04, enter 10/1/04. For employees who on 10/1/04 are Inactive, on Leave Without Pay, or in a bargaining unit other than M/C, enter the date prior to 10/1/04 on which the employee was last paid from an M/C position.
   
Earnings End Date: Enter the same date as the Earnings Begin Date.
   
Days: Enter the number of days of Vacation Exchange.

The system will automatically calculate the amount of the Vacation Exchange payment using the salary and additional salary factorsin effect on the date entered in the Earnings Begin Date field.

Hourly Employees and Daily Employees Paid as FEE

Earn Code: VXO (Vacation Exchange Override)
   
Earnings Begin Date: For employees who are Active on the payroll in an M/C position on 10/1/04, enter 10/1/04. For employees who on 10/1/04 are Inactive, on leave without pay, or in a bargaining unit other than M/C, enter the date prior to 10/1/04 on which the employee was last paid from an M/C position.
   
Earnings End Date: Enter the same date as the Earnings Begin Date.
   
Days: Enter the number of days of Vacation Exchange.
   
Amount: Enter the total amount of the Vacation Exchange payment.

Miscellaneous Payment Information

The Vacation Exchange payment is taxable, but non-pensionable, and will be made in a separate check, regardless of whether the earnings are submitted timely or at a later date.

There is no Direct Deposit for this payment.

If an employee’s existing tax record in PayServ reflects an additional tax amount, the additional amount will be withheld from both the regular paycheck and the Vacation Exchange check. In order to avoid an over-withholding of taxes in the pay period the Vacation Exchange payment is processed, agencies may want to review the Tax pages of Active and Inactive M/C employees to determine if an additional tax amount currently on the record requires follow-up action.

Payroll Register and Employee Paycheck
The Earn Codes VEX or VXO will appear on the payroll register. The Earn Code description “Vacation Exchange” or “Vacation Exchange Override” will appear on the employee’s pay stub.
Questions

Questions about this Bulletin may be directed to your OSC Payroll Auditor.