State Agencies Bulletin No. 987

Subject
April 2010 Management Confidential (M/C) Longevity Lump Sum Payments (LLS)
Date Issued
April 13, 2010
Status
AMENDED
Status Date
May 3, 2010

Purpose

To inform agencies of OSC’s automatic processing of the LLS payment and to provide instructions for payments not processed automatically.

Affected Employees

Longevity-eligible employees with an increment code of 1976-2005 in Bargaining Units 06, 46, 66, and 79

Background

Chapter 10 of the Laws of 2008 implemented the agreement between the State and various bargaining units and employees designated M/C and provides for a new Longevity Lump Sum payment beginning April 2010.The Longevity Lump Sum payment will be in the amount of $1,250 or $2,500 based on the eligibility criteria below.

Effective Date(s)

Payment will be processed in a separate check dated May 20, 2010 (Institution) and May 26, 2010 (Administration).There will be no direct deposit for this payment.

Eligibility

Employees in graded and equated to grade (603-617) positions are eligible for the payment provided the employee:

  • Is on the payroll March 31, 2010 (Active, on Paid Leave of Absence, or a Military Stipend Leave) in qualifying BU 06, 46, 66 or 79 position; and
  • As of March 31, 2010, has five (5) or more or ten (10) or more years of continuous service* at a base annual salary equal to or greater than the Job Rate for the employee’s current grade; and
  • A withhold was not approved by the Division of the Budget.

*Continuous service, as used in determining eligibility for the LLS payment, is paid service (including part-time annual-salaried service, paid Military Leave and Sick Leave at Half Pay) or time on Workers’ Compensation Leave or Military Leave without Pay. Employees are not eligible to receive more than one payment in a fiscal year.

Withholds

If the agency determines that an M/C employee’s automatic Longevity Lump Sum payment should be withheld, the agency must request approval through the Division of the Budget per Bulletin D-1127. Agencies may submit a Job Action Request using the Action/Reason code of DTA/PWH (Data Change/ Performance Advance Withheld) and enter Increment Code 7777 to withhold a Longevity Lump Sum payment. If the agency does not submit a transaction to withhold the payment, OSC will enter the transaction.

The following employees will become eligible for the LLS payment upon processing of Performance Advances effective Pay Period 1L:

An employee occupying a position that has been previously reallocated, whose salary was equal to or greater than the Job Rate of the lower grade and whose salary upon application of the April 2010 Performance Advance reaches the Job Rate of the reallocated grade is entitled to the Job Rate credit of the lower grade.

  • The Increment Code of an employee receiving the April 2010 Performance Advance will be automatically updated from 0001 to 2010.
  • These employees will not receive an automatic LLS payment; therefore, the agency must submit the transactions to make the payments and update the increment codes after the Performance Advances are processed. For instructions, see the section below entitled “Agency Actions – Payments to Employees Not Paid Automatically.”
The following employees will become eligible for the LLS payment during 2010-2011:
  • An employee who otherwise qualifies but is on an approved Leave of Absence without Pay including Workers’ Compensation Leave or on a preferred list on March 31, 2010 and who returns from such leave between April 1, 2010 and March 31, 2011 is eligible for the payment.  There is no minimum service requirement following the employee’s return to active payroll status.  The agency should request the LLS payment in the same pay period the employee returns to active payroll status.
  • Demotion after March 31, 2010 - An employee who is not eligible for the payment becomes eligible if the employee returns to a lower graded position between April 1, 2010 and March 31, 2011, provided the employee otherwise would have been eligible if the employee had been in the lower graded position on March 31, 2010 and remained in the lower graded position for at least six (6) pay periods; and
  • The promotion was temporary and the employee has been reinstated to their previous position or has been appointed to another lower graded qualifying position; or
  • The promotion was permanent, but the demotion occurred:
    • in lieu of layoff; or
    • voluntarily during the probationary period; or
    • as a result of failure of a probationary period.

The agency should request the LLS payment after the completion of six (6) full pay periods in the lower grade using the same effective date as the demotion.

An employee demoted as a result of a disciplinary action or who takes a voluntary demotion from a permanent position after the completion of a probationary period in the higher grade is not eligible for an LLS payment in the lower grade.

OSC Actions

OSC will automatically insert a row on the employee’s Additional Pay page using the Earnings Code LLS to make the payment.  The payment amount is $1,250 for five (5) or more years and $2,500 for ten (10) or more years or a prorated amount, as described below:

  • Employees who are full-time on March 31, 2010 or full-time employees who are on a Paid Leave of Absence, Military Stipend Leave or on a Voluntary Reduction in Work Schedule (VRWS) receive the full payment amount.

Note: For employees on the Voluntary Reduction in Work Schedule program, the agency must verify that the Full/Part Time Indicator on the Job Data/Job Information page is “Voluntary.”

  • Employees who are part-time on March 31, 2010 receive a prorated payment based on the employee's part-time percentage on March 31, 2010.
  • Part-time employees who are on a Paid Leave of Absence or Military Stipend Leave on March 31, 2010 receive a prorated amount based on the employee's regular part-time percentage prior to the leave.

The Additional Pay page will be populated for eligible employees with the following:

Earnings Code: Effective Date: OT Effective Date: Annual Additional Earnings: Earn End Date: LLS 4/1/10 4/1/10 Payment Amount 3/31/11

Agency Actions - Payments to Employees Not Paid Automatically

To pay an employee after the automatic payment has been processed, enter the following information on the Additional Pay page:

Earnings Code: LLS
Effective Date: Enter eligibility date*
OT Effective Date: Same as effective date
Annual Additional Earnings: Payment Amount
Earn End Date: 3/31/11

*For example: If an Institution agency enters a transaction in Pay Period 5L for an employee who returned to the payroll on June 1, 2010, the effective date is 6/1/10. If an Administration agency enters a transaction in Pay Period 6L for an employee who returned to the payroll on June 10, 2010, the effective date is 6/10/10.

To Correct an Increment Code

If the employee did not receive an automatic LLS payment because the increment code was incorrect, the agency must, in addition to submitting the LLS payment, submit a Job Action Request using the Action/Reason code of DTA/CIC (Data Change/Correct Increment Code). The appropriate increment code must be entered in the Increment Code field.

Employee Becomes Eligible for Payment Due to Demotion

If an employee was ineligible on 3/31/10 and becomes eligible in 2010-2011 due to demotion as explained above, the agency should enter a comment on the General Comments page verifying the employee is eligible for LLS based on the reason the demotion occurred.

Automatic Retroactive Processing

Overtime

The LLS payment is included in the calculation of overtime compensation effective 4/1/10-3/31/11. OSC will automatically calculate retroactive adjustments to overtime for overtime worked between 4/1/10 through Pay Period 2.

Inactive Employees with Outstanding Overpayment

For employees who are Inactive at the time of payment, the LLS payment will be applied to any Overpayment (OVP) set up in Additional Pay that has a Goal Amount and Goal Balance that are not equal.  The payroll system will determine the difference between the Goal Balance and Goal Amount and will deduct the difference from the employee’s check and update the Goal Balance.  If the amount of the positive earnings is not sufficient to deduct the entire overpayment, the system will deduct the amount of positive earnings possible and update the OVP Goal Balance accordingly.

Undeliverable Checks

Inactive employees may be eligible for a payment.  If the agency has made an effort to deliver the check to the employee but the check has been returned and is undeliverable, the agency should forward the check to the NYS Department of Tax and Finance, Division of Treasury, per instructions in Payroll Bulletin No. 456.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P) and a Report of Check Exchange (Form AC 1476-P).

For recipients of a previously deceased employee's payroll checks where a Next of Kin Affidavit and Report of Check Exchange forms have been submitted, OSC will accept a photocopy of these forms to process the exchange of the check.

Retirement and Overtime Calculation Information

The LLS is a one-time, lump sum payment which is included as salary for retirement purposes and in the calculation of overtime compensation (refer to “Overtime Compensation,” Part III, Page 1 of the OSC Salary Manual). The 2010 Longevity Lump Sum payment will be included in the calculation of overtime earned from April 1, 2010 through March 31, 2011.

Control-D Reports and Preparation for Payment

Prior to the automatic processing, the following report will be available:

NPAY756 Longevity Lump Sum (LLS) Eligibility Listing

This report is a preliminary listing of employees eligible for the LLS payment as of the date the report is run (approximately April 19, 2010).  It will be available the week of April 19, 2010. Corrections to the preliminary listing should be submitted on the Correction Sheet.  (The form may be duplicated if additional copies are needed.)  This form must be used to:

  • Delete employees who should not appear on the listing
    • Employees who may appear on agency recommended withholding submitted to the Division of the Budget. Note: Requires their approval in order for OSC to take action.
  • Add employees who do not appear on the listing, such as:
    • Eligible employees in NS positions where the equated grade does not appear on the Position Data page. Agencies must submit documentation of the salary equation with the Correction Sheet.
    • Eligible employees who are in composite positions (identified by Increment Code 2222).
    • Employees whose positions were downward reallocated and were eligible based on the prior grade (identified by Increment Code 0069)
  • Change incorrect information pertaining to an employee appearing on the listing.

Corrections should be submitted as soon as possible and must be received no later than May 3, 2010.  Please fax corrections to (518) 474-2601 or (518) 402-4949 and send an email to the Salary Determination mailbox to inform the Salary Determination Unit that a correction has been faxed.

After the automatic processing is completed, the following report will be available:

NPAY770 One Time Payment Report

This report identifies all employees who received the automatic LLS payment.

Taxes and Deductions

This payment is subject to Federal, State, and local income taxes and Social Security/Medicare employment taxes.  Deductions will be taken for retirement normal contributions, garnishments and Federal levies.

Payroll Register and Employee’s Paycheck

The Earnings Code LLS and the amount will be displayed on the payroll register. The earnings description, Longevity LSP, and the amount will be printed on the employee’s paycheck.

This payment will be made in a separate check regardless of when paid. There will be no direct deposit for this payment. The separate check will be issued along with the employee’s regular paycheck or direct deposit advice for the check date submitted.

Questions

Questions about the LLS payment may be directed to the Salary Determination mailbox.

Questions about Deductions may be directed to the Payroll Deductions mailbox.

All other questions may be directed to the Payroll Audit Mailbox.