Purpose:

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the PEF 2024 Dental Stipend and to provide agency instructions for payments not processed automatically.

Affected Employees:

Employees in the Professional, Scientific, and Technical Services (PS&T) Unit (BU05) who meet the eligibility criteria are affected.

Background:

Chapter 190 of the Laws of 2023 implemented the 2023-2026 Agreement between the State of New York and PEF which includes a side letter authorizing a $400 lump sum payment to offset out-of-pocket dental expenses for eligible employees. The payment is payable each fiscal year until the State enters into a new dental services contract for eligible NYSHIP enrollees. These monies will not be added to base salary, are not subject to salary increases, and are not pensionable.

Effective Dates:

OSC will automatically process the PEF 2024 Dental Stipend for certain eligible employees using the following effective dates, end dates, and check dates:

Agencies may submit transactions for eligible employees not processed automatically using the above effective dates and end dates beginning in the provided check dates.

Eligibility Criteria:

Employees who meet the following criteria are eligible to receive the PEF 2024 Dental Stipend:

• Are in a PEF BU05 position in PayServ on 04/01/2024.
• Have a Payroll Status of Active, Leave With Pay or Leave of Absence on 04/01/2024.
• Have a Payroll Status of Active, Leave With Pay, Leave of Absence, Terminated, Retired or Deceased at time of payment.
• Are enrolled in the NYSHIP Dental Plan and completed the 28-day waiting period on or before 04/01/2024.

In addition, if the employee has a value of Temporary or Seasonal in the Reg/Temp field on the Position Data page associated with the employee’s NYS Position Number, they must:

• Have completed six (6) months of service in a PEF BU05 position as of 05/01/2024 (Administration Extra-Lag), 05/08/2024 (Administration Lag and Institution Extra-Lag), or 05/15/2024 (Institution Lag) OR 
• Be expected to be employed for at least six (6) months.

The following employees are NOT ELIGIBLE to receive the PEF 2024 Dental Stipend:

• Seasonal employees whose employment is expected to last less than six (6) months.
• Employees in temporary positions of less than six (6) months duration.
• Employees holding appointments otherwise expected to last less than six (6) months.

Control-D Report Available Prior to Processing:

The following Control-D report will be made available for agency review prior to the automatic processing. 

NHRP738 – Excel to Control D Report

Upon opening the NHRP738 report, the description PEF 2024 Dental Stipend (Temporary/Seasonal Employees) appears in the page header. This report identifies all employees whose Reg/Temp field is Temporary or Seasonal on the Position Data page based on the employee’s NYS Position Number on 04/01/2024 and while they meet all remaining eligibility criteria, OSC cannot determine if they met or are expected to meet the six (6) months of service criteria. These employees will not be processed automatically and must be reviewed by the agency to determine eligibility. The report includes the employees’ current Deptid.

OSC Actions:

Automatic Processing

OSC will automatically process the PEF 2024 Dental Stipend for employees who meet the following eligibility criteria:

• Employees whose Reg/Temp field is Regular on the Position Data page based on the employee’s NYS Position Number on 04/01/2024.
• Employees whose Reg/Temp field is Temporary or Seasonal on the Position Data page based on the employee’s NYS Position Number on 04/01/2024 and who have completed six (6) months of service in a PEF BU05 position as of 05/01/2024 (Administration Extra-Lag), 05/08/2024 (Administration Lag and Institution Extra-Lag), or 05/15/2024 (Institution Lag) with the following exceptions:
• Employees with a Comp Rate Code of HRY on 04/01/2024 who have not been paid using Earnings Code RGH with earnings dates that fall within 13 consecutive pay periods as of 05/01/2024 (Administration Extra-Lag), 05/08/2024 (Administration Lag and Institution Extra-Lag), or 05/15/2024 (Institution Lag).
• Employees with a Comp Rate Code of FEE on 04/01/2024 who have not been paid using Earnings Codes FEE, FRC or FNC with earnings dates that fall within 13 consecutive pay periods as of 05/01/2024 (Administration Extra-Lag), 05/08/2024 (Administration Lag and Institution Extra-Lag), or 05/15/2024 (Institution Lag).

Creation of Additional Pay Record

OSC will create an Additional Pay record for employees who meet the eligibility criteria outlined in the OSC Actions – Automatic Processing section as follows:

Control-D Report Available After Processing:

The following Control-D report will be made available for agency review on 05/17/2024 (Administration) and on 05/24/2024 (Institution).

NHRP703 – Mass Salary Additional Pay Report

This report identifies all employees who received a PEF 2024 Dental Stipend using Earnings Code PDS in the Check Dates in the Effective Dates section. 

Agency Actions:

Payments Not Processed Automatically

Agencies must determine for each temporary or seasonal employee appearing on Control-D Report NHRP738 whether their employment is expected to last at least six (6) months. If the employee has been employed for at least six (6) months at time of payment or is expected to be employed for at least six (6) months, the agency must process the PEF 2024 Dental Stipend.

Submitting Payment

To process the PEF 2024 Dental Stipend for eligible employees not processed automatically, agencies must submit the following information on the Additional Pay page or the Automated Interface (NHRP573) beginning in Administration or Institution Pay Period 3L:

Overtime Calculation:

The PEF Dental Stipend must be included in the calculation of overtime compensation.

Annualized Employees

The PEF Dental Stipend for annualized employees will be included automatically 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 PDS.

Hourly Employees

The PEF Dental Stipend for hourly employees will not be included automatically in the calculation of overtime. Therefore, an overtime adjustment is required for all overtime hours earned between the OT Eff Date through the End Date on the employee’s Additional Pay page for Earnings Code PDS.

To pay the overtime adjustment to eligible hourly employees, the agency must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using Earnings Code BO2 (DentalStipOvertimeHRY$400 2080).

Ending Overtime Eligibility

If an employee has received the PEF Dental Stipend and is subsequently appointed to a position which is not eligible to receive the payment, the PEF Dental Stipend cannot be included in the compensation calculation of any overtime earned on or after the date of the appointment. Therefore, the agency must insert a row on the Additional Pay page or the Automated Interface (NHRP573) at the Effective Date level of Earnings Code PDS and enter the following information:

Retirement Information and General Deductions:

The PEF Dental Stipend is not included as salary for members of the New York State and Local Retirement System. Additionally, the payment is not subject to PEF union dues, but deductions will be taken from the payment for garnishments and levies.

General Deductions:

All general deductions for employees with a Payroll Status of Terminated, Retired or Deceased will be automatically cancelled by OSC with the exception of percentage-based dues and the following:

Tax Information:

The PEF Dental Stipend monies are supplemental taxable income subject to all employment taxes and income taxes, will be included in the employee’s taxable gross, and reported on the employee’s Form W-2.

Federal, State, and New York City income tax withholding will be calculated using the Aggregate method. Yonkers income tax withholding will be calculated using the Flat Rate method (1.95975% for Yonkers residents and 0.50% for Yonkers Non-residents).

Special Wage Payments for Individuals Who Filed for Retirement Social Security Benefits:

Per Internal Revenue Service Publication 957, OSC will be reporting retroactive payments made to individuals who have filed for Social Security benefits to the Social Security Administration (SSA).

As PayServ does not include this information, OSC will be mailing a Request for Special Wage Payment Report to inactive individuals who are 62 or older in the calendar year and to active employees with the New York Retiree Indicator checked in Modify a Person who receive the retroactive payment. Recipients of this mailing will be asked to fill out the request and return it to OSC for inclusion on the Special Wage Payment Report to SSA. This report will be submitted to SSA after the close of the 2024 tax year.

It is important that agencies ensure the New York Retiree Indicator box is checked for rehired retirees. Please see Payroll Bulletin No. 1728 – New York Retiree Indicator for further details on the New York Retiree Indicator box.

Payroll Register and Employee’s Paycheck/Advice:

The Earnings Code (PDS, BO2) and the amount paid will be displayed on the Payroll Register. The Earnings Description (PEF Dental Stipend, DentalStipOvertimeHRY$400 2080) and the amount paid will be displayed on the employee’s paycheck stub or direct deposit advice. If the number of earnings codes exceeds 13, agencies should utilize Locked Query LQ_PCD_PAYCHECK_EARNINGS_BY_ID to identify a complete list of earnings.

Undeliverable Checks:

When a valid payroll check is undeliverable due to the agency’s inability to locate the employee, the agency should follow the Agency Actions identified in Payroll Bulletin No. 1786 – Non-Negotiated and/or Undeliverable New York State Payroll Checks.

Checks issued to eligible employees who are now deceased should be submitted as a Stop Payment Request with a reason of Exchange in PayServ. The Report of Check Exchange (AC 1476-P), Next of Kin Affidavit (AC 934-P), and original death certificate should be submitted to the Payroll Reversal and Exchange mailbox at the same time as the Stop Payment Request. 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 an employee’s enrollment in the NYSHIP Dental Plan may be directed to the Department of Civil Service.

Questions regarding eligibility may be directed to the Office of Employee Relations.

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

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