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Date: May 2, 2016

Bulletin Number: 1482

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Subject April 2016 Management and Confidential (M/C) Longevity Lump Sum (LLS) Payment

Purpose To inform agencies of OSC’s automatic processing of the April 2016 M/C LLS payment and provide instructions for payments not processed automatically.

Affected Employees Employees designated management or confidential in the following bargaining units who meet the eligibility criteria:

  • Management Confidential

BU06

  • Division of Military and Naval Affairs

BU46

  • Public Employment Relations Board

BU66

  • Legislative Commissions

BU79


Background Civil Service Law, Section 130 and the Division of the Budget Bulletin D-1133 provide for payment of the 2016-2017 Longevity Payment effective April 2016 as a one-time, lump sum payment in the amount of $1,250 or $2,500.

Effective Date(s) Payment is effective 04/01/16 and will be processed in a separate check dated 05/26/2016 (Institution Pay Period 3L) or 06/01/2016 (Administration Pay Period 3L). There is no direct deposit for this payment.

Eligibility Criteria Employees in graded positions (Grade 603-617) and NS positions (Grade 600) which are equated to a grade (Grade 603-617) are eligible for the April 2016 M/C LLS payment provided the employee:
  • Is Active, on a Leave With Pay or on an Unpaid Military Stipend Leave in a BU06, BU46, BU66 or BU79 position on 03/31/16; and
  • Has a Pay Basis Code of ANN or BIW (only if the employee is on a Paid Military Stipend Leave) on 03/31/16; and
  • Has five (5) or more years or ten (10) or more years of continuous service* at a base annual salary equal to or greater than the Job Rate of the employee’s grade (based on the 07/01/15 Salary Schedule) as of 03/31/16; and
  • Did not have a withholding recommendation 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 Unpaid Military Leave.

Withholding Recommendation

If the agency determines the full or partial value of the April 2016 M/C LLS payment should be withheld from an employee, the agency must request approval from the Division of the Budget as explained in Budget Bulletin D-1133.  If the full value is withheld, the agency should submit a Data Chg on the Job Action Requests page using an effective date of 03/31/16, the Reason code PWH (Perf Withheld) and an increment code of 7777 in the Incr. Code field.  (The prior increment code will be restored after the April 2016 M/C LLS processing is complete.)  These transactions should be submitted as soon as possible following approval but prior to, or as part of, processing for Institution or Administration Pay Period 3L.  If the agency does not submit the transaction to withhold the full value of the April 2016 M/C LLS payment or if the agency chooses to withhold a partial, the transaction will be entered or updated by OSC based on information received from the Division of the Budget.

The following employees may become eligible for the April 2016 M/C LLS payment upon processing of the April 2016 M/C Performance Advance which results in Job Rate:

Upward Reallocation:  An employee occupying a position on 03/31/16 that was previously upward reallocated, whose salary at the time of the reallocation was equal to or greater than the Job Rate of the lower graded position and whose salary upon application of the April 2016 M/C Performance Advance is equal to the Job Rate of the reallocated position is entitled to the job rate credit for service in the lower grade.

  • The increment code of an employee receiving the April 2016 M/C Performance Advance that results in a salary equal to the Job Rate of the reallocated position will be automatically updated from 0001 to 2016.
  • The agency must evaluate the employee’s Payroll Status beginning from the time of reallocation through the date of the performance advance to determine if the increment code must be updated.
    • If the Payroll Status remained Active, Leave With Pay or Leave of Absence due to a Workers’ Compensation Leave or Military Leave during this period, the employee is entitled to have the increment code of the lower grade reinstated.
    • If the Payroll Status was Leave of Absence not related to a Workers’ Compensation Leave or Military Leave any time during this period, the increment code of the lower grade must be evaluated to determine the appropriate increment code adjustment.
    • If the increment code must be updated, the agency must submit a Data Chg on the Job Action Requests page using the same effective date as the performance advance, the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal) and an increment code reflecting the appropriate job rate credit.
  • If the employee’s combined job rate credit equals five (5) or more years or ten (10) or more years, the employee is eligible for the April 2016 M/C LLS payment.  This payment will not be processed automatically; the agency must submit a transaction to make the LLS payment.

Lateral Position Change from a Non-M/C Position Where the Employee’s Salary was Equal to or Greater Than Job Rate to an M/C Position with a Higher Job Rate:  An employee with a salary equal to or greater than the Job Rate of their salary grade, who had a lateral position change to an M/C position with a higher Job Rate, and whose salary upon application of the April 2016 M/C Performance Advance is equal to the Job Rate in the M/C position is entitled to job rate credit for service in the non-M/C position.

  • The increment code of an employee receiving the April 2016 M/C Performance Advance that results in a salary equal to the Job Rate will be automatically updated from 0001 to 2016.
  • These employees may be eligible for but will not receive an automatic April 2016 M/C LLS payment.  If the employee’s combined job rate credit equals five (5) or more years or ten (10) or more years, the agency must submit a transaction to make the LLS payment.  In addition, the agency must submit a Data Chg on the Job Action Requests page using the same effective date as the performance advance, the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal) and an increment code reflecting the combined job rate credit in the Incr. Code field.

The following employees will become eligible for the April 2016 M/C LLS payment during 2016-2017:

Leave of Absence/Preferred List on 03/31/16:  An employee who otherwise qualified for the April 2016 M/C LLS payment but was on an approved Leave of Absence (including Workers’ Compensation Leave or Unpaid Military Leave) or on a preferred list on 03/31/16 becomes eligible if they return to the payroll or are appointed to an eligible position between 04/01/16 and 03/31/17.  There is no minimum service requirement following the employee’s return to active payroll status.

Demotions after 03/31/16:  An employee who was not eligible for the April 2016 M/C LLS payment on 03/31/16 becomes eligible if the employee returns to a lower graded position between 04/01/16 and 03/31/17, provided the employee:

  • Otherwise would have been eligible if the employee had been in the lower graded position on 03/31/16 and remains in the lower graded position for at least six (6) full 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 the probationary period.

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

For instructions on submitting transactions to make the April 2016 M/C LLS payment, see Agency Actions – Payments Not Processed Automatically.

Control-D Report and Agency Actions Prior to Payment Prior to the automatic processing of the April 2016 M/C LLS payment, the following Control-D report will be available for agency use.

NPAY756 – Longevity Lump Sum (LLS) Eligibility Listing

This report is a preliminary listing of employees who appear eligible for the April 2016 LLS payment based on information available as of the date the report was produced (03/03/16 Administration and Institution).

The following corrections to the preliminary listing should be submitted on the Correction Sheet.  The form may be duplicated if additional copies are needed.

  • 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 supporting the salary equation with the Correction Sheet.
    • Eligible employees who are in a composite position (identified by Increment Code 2222) even though the agency must submit a transaction to make the payment.
    • Employees whose positions were downward reallocated and were eligible based on the prior grade (identified by Increment Code 0069) even though the agency must submit a transaction to make the payment.
  • Delete employees who should not appear on the listing, such as:
    • Employees who had a withholding recommendation submitted to the Division of the Budget for the full value of the LLS payment; requires DOB approval in order for OSC to take action.  In addition, once the withhold is approved, the agency should submit a Data Chg on the Job Action Requests page using an effective date of 03/31/16, the Reason code PWH (Perf Withheld) and an increment code of 7777 in the Incr. Code field.
  • Identify employees appearing on the listing who had a withholding recommendation submitted to the Division of the Budget for a partial value of the LLS payment; requires DOB approval in order for OSC to update the value.
  • Identify employees appearing on the listing who have incorrect information appearing in PayServ affecting their eligibility for the LLS payment.  In addition, the agency must submit the appropriate transaction to correct the information.
Correction Sheets should be submitted as soon as possible but must be received no later than 05/13/2016  Please fax completed Correction Sheets to (518) 474-2601 and send an email to the Payroll Earnings mailbox stating that a Correction Sheet has been faxed; please include the Department ID and ‘LLS Correction Sheet’ in the Subject line.

OSC Actions – Automatic Processing OSC will process the April 2016 M/C LLS payment for those employees who meet the eligibility criteria by inserting a row on the employee’s Additional Pay page as shown below.  The payment amount is $1,250 for employees with five (5) or more years of continuous service (identified by Increment Code 2007-2011) or $2,500 for employees with ten (10) or more years of continuous service (identified by Increment Code 1976-2006), or a prorated amount.
  • Employees who are on a Voluntary Reduction in Work Schedule (VRWS) on 03/31/16 receive the full LLS payment amount based on the employee’s increment code.  Agencies must verify that the Full/Part field on the Job Data/Job Information page is ‘Voluntary’.
  • Employees who are on a Leave With Pay with an Action/Reason code of Paid Leave of Absence/SKL (Sick Lv) on 03/31/16 receive an amount based on the employee’s increment code and percentage.  The full LLS payment amount based on the employee’s increment code is multiplied by the employee’s Empl Work Percent on the Job Data/Job Information page prior to the leave.
  • All other employees (including employees on a Leave With Pay, Paid Military Stipend Leave and Unpaid Military Stipend Leave) receive an amount based on the employee’s increment code and percentage in effect on 03/31/16.  The full LLS payment amount based on the employee’s increment code is multiplied by the employee’s Empl Work Percent on the Job Data/Job Information page in effect on 03/31/16.

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

Earnings Code:

LLS

Effective Date:

04/01/16

OT Eff Date:

04/01/16

Annual Addl Earnings:

$1250 or prorated amount (Increment Codes 2007-2011)
$2500 or prorated amount
(Increment Codes 1976-2006)

End Date:

03/31/17


Agency Actions –Payments Not Processed Automatically Agencies must submit transactions to make the April 2016 M/C LLS payment to the following employees.
  • Increment Code 0069 on 03/31/16:  Agencies must submit transactions for eligible employees whose position on 03/31/16 was previously downward reallocated.  Transactions should be submitted beginning in Institution  or Administration Pay Period 3L; the effective date of the LLS payment should be 04/01/16.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s job rate credit in the grade prior to the reallocation.  Information regarding the reallocation must be included on the General Comments page.
  • Increment Code 2222 on 03/31/16:  Agencies must submit transactions for eligible employees who were in a composite position on 03/31/16.  Transactions should be submitted beginning in Institution or Administration Pay Period 3L; the effective date of the LLS payment should be 04/01/16.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the increment code of the employee’s qualifying position (noted in General Comments) and the percentage attributed to such position on 03/31/16.  Information regarding the composite position must be included on the General Comments page.
  • Upward Reallocation:  Agencies must submit transactions for eligible employees whose position on 03/31/16 was previously upward reallocated and whose salary upon application of the April 2016 M/C Performance Advance is equal to the Job Rate of the reallocated position as explained above.  Transactions should be submitted beginning in Institution or Administration Pay Period 4L; the effective date of the LLS payment should be 04/01/16.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s adjusted increment code indicating job rate credit.

●   Lateral Position Change:  Agencies must submit    transactions for eligible employees with a salary equal to or greater than the Job Rate in a non-M/C position, who had a lateral position change to an M/C position with a higher Job Rate and whose salary upon application of the April 2016 M/C Performance Advance is equal to the Job Rate in the M/C position as explained above.  Transactions should be submitted beginning in Institution or Administration Pay Period 4L; the effective date of the LLS payment should be 04/01/16.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s adjusted increment code indicating job rate credit.

  • Leave of Absence on 03/31/16:  Agencies must submit transactions for employees who were otherwise eligible on 03/31/16 to receive the payment but whose Payroll Status was Leave of Absence (except those on Unpaid Military Stipend Leave) and who return from such leave between 04/01/16 and 03/31/16 as explained above.  Transactions should be submitted in the pay period the return from leave is processed or in Institution or Administration Pay Period 3L if the employee has already returned; the effective date of the LLS payment should be the same as the return from leave effective date.  The LLS payment amount should be calculated as explained in the OSC actions – Automatic Processing.

Note: The employee’s increment code may need to be adjusted as a result of the leave of absence in effect on 03/31/16 and could impact the employee’s April 2016 M/C LLS eligibility.

  • Preferred List on 03/31/16:  Agencies must submit transactions for employees who were otherwise eligible on 03/31/16 to receive the payment but who were on a preferred list and who are appointed to an eligible position between 04/01/16 and 03/31/17 as explained above.  Transactions should be submitted in the pay period the appointment is processed; the effective date of the LLS payment should be the same as the preferred list appointment effective date that occurred in 2016-2017.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the percentage associated with the eligible position.

Note:  The employee’s increment code may need to be adjusted as a result of time off the payroll and could impact the employee’s April 2016 M/C LLS eligibility.

  • Demotions after 03/31/16:  Agencies must submit transactions for employees who were ineligible for the payment on 03/31/16 but become eligible on or before 03/31/17 due to a demotion as explained above.  Transactions should be submitted after the employee completes six (6) full pay periods in the lower grade; the effective date of the LLS payment should be the same as the effective date of the demotion.  The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on information on the date of the demotion.  Information regarding the reason the demotion occurred must be included on the General Comments page.

Submitting Payment

To make the April 2016 M/C LLS payment to eligible employees who were not processed automatically, agencies must submit the following information on the Additional Pay page using Earnings Code LLS.

Earnings Code:

LLS

Effective Date:

As defined above

OT Eff Date:

Same as Effective Date

Annual Addl Earnings:

$1250 or prorated amount (Increment Codes 2007-2011)
$2500 or prorated amount (Increment Codes 1976-2006)

End Date:

03/31/17 OR the last date the employee is in an eligible position (see Overtime Calculation Information)


Increment Code Correction

If the employee did not receive an automatic April 2016 M/C LLS payment due to an incorrect increment code, in addition to submitting the LLS payment, the agency must submit a Data Chg on the Job Action Requests page using the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal) and the appropriate increment code in the Incr. Code field.

In addition, if the Division of the Budget approves a withholding recommendation for an employee and the increment code was changed to 7777, the prior increment code must be reinstated after processing of the April 2016 M/C LLS payment is complete.  Beginning in Institution  or Administration Pay Period 4L, the agency must submit a Data Chg on the Job Action Requests page effective 04/01/16, using the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal) and the employee’s prior increment code in the Incr. Code field.

Control-D Report Available After Processing After the automatic processing of the April 2016 M/C LLS payment is completed, the following Control-D report will be available for agency use.

NPAY770 – One Time Payment Report

This report identifies all employees who received the April 2016 M/C LLS payment effective 04/01/16.

Overtime Calculation Information The LLS payment is included in the calculation of overtime compensation (refer to the Online Payroll Manual accessed from the PayServ Bulletin Board – Payroll Manual > Earnings Manual > Payments\Withholdings > Overtime Compensation).  The April 2016 M/C LLS payment will be included in the calculation of overtime earned from the OT Eff Date through the End Date on the employee’s Additional Pay page for Earnings Code LLS.

If an employee is appointed to an ineligible position (including a position which results in a salary below the Job Rate of the grade of the new position) after the effective date of the April M/C LLS payment, the payment cannot be included in the compensation calculation of any overtime earned after the date of the appointment.

Therefore, if an eligible employee is appointed to an ineligible position prior to or in Administration or Institution Pay Period 3L, OSC will update the End Date of those transactions processed automatically to reflect the last date the employee was in an eligible position after Administration or Institution Pay Period 3L, agencies are responsible for inserting a row on the Additional pay page at the Effective Date level of Earnings Code LLS and entering the following information.  The transaction should be submitted in the pay period the position change is processed.

Effective Date:

Last date in eligible position (date prior to appointment)

OT Eff Date:

Same as original OT Eff Date

Annual Addl Earnings:

Same as original amount (populates automatically)

End Date:

Same as Effective Date

Goal Balance:

Same as Annual Addl Earnings (to prevent making another payment)

Retroactive Adjustment

OSC will automatically calculate retroactive adjustments for overtime earned on or after the OT Eff Date associated with the April 2016 M/C LLS payment and paid prior to the automatic processing of the April 2016 M/C LLS payment.

Agency Actions – Retroactive Processing Reporting Retroactive Adjustments

Time Entry earnings codes that are submitted with an amount will not be adjusted automatically.  Therefore, beginning in Institution or Administration Pay Period 3L, agencies must report the adjustment amount for earnings codes such as Extra Time Override (EXO) and Regular Salary Override (RGO).

Correcting an Automatic Retroactive Adjustment

When certain conditions exist in an employee’s record, the automatic retroactive adjustment may be incorrect.  Therefore, the agency is responsible for identifying employees who meet the following conditions and, if necessary, submitting the necessary adjustment.

  • If an employee has a check returned or exchanged on an AC-230 for dates on or after the effective date of the payment, the payroll system does not consider the AC-230 when calculating the automatic retroactive adjustment.
  • If earnings were previously reported using Earnings Code RGS and a date range that exceeded the number of days reported, the system will calculate the adjustment of earnings based on the number of workdays within the range.
  • Adjustments for earnings that are calculated automatically, such as OT for Annuals (OTA), will be calculated incorrectly if the dates previously reported as a single entry on the Time Entry page overlap the effective date of the payment.  The system will calculate an adjustment for all earnings reported in a single entry based on the salary in effect on the Earnings End Date.
  • For employees who had a change reported on the Job Data page, since the effective date of the payment and the action resulted in an overpayment of earnings, the automatic negative retroactive adjustment may not have been processed because the overpayment was either not recoverable or was recovered using an overpayment earnings code or an AC-230.  In this case, the negative retroactive adjustment may be re-generated when the payment is processed.  OSC will turn off (not process) the automatic negative adjustment for these employees since in most cases these overpayments were either not recoverable or recovered using another method.

If an overpayment of earnings is identified after the automatic payment is processed but before the paycheck is received by the employee, the employee must be notified of the overpayment and the adjustment that will be reported in a subsequent pay period.

Submitting an Adjustment

To process a retroactive adjustment or correct an automatic retroactive adjustment, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code AJR.

Earnings Begin Date:

The first date included in the adjustment

Earnings End Date:

The last date included in the adjustment

Earn Code:

AJR

Amount:

Amount to be adjusted

Comments:

An explanation of the adjustment


Tax Information The LLS payment is taxable income, will be included in the employee’s taxable gross and is subject to all employment taxes and income taxes.  If the employee has any additional tax amount on the Update Employee Tax Data page, the additional amount will be deducted from both the employee’s regular paycheck and the separate paycheck.

Payroll Register and Employee’s Paycheck/Advice The Earnings Code LLS and the amount paid will be displayed on the Payroll Register.  The Earnings Description Longevity LSP and the amount paid will appear on the employee’s paycheck stub and direct deposit advice (if applicable).

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

Undeliverable Checks 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 Taxation and Finance, Division of Treasury, per instructions in Payroll Bulletin No. 908.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P), original Death Certificate and a Report of Check Exchange (Form AC 1476-P).  If a Next of Kin Affidavit has been previously submitted for a deceased employee’s payroll check, OSC will accept a photocopy of this form along with a new Report of Check Exchange.

Questions Questions regarding eligibility and payment information may be directed to the Payroll Earnings mailbox.

Questions regarding deductions and retirement may be directed to the Payroll Deduction mailbox.

Questions regarding withholding taxes may be directed to the Tax and Compliance mailbox.