Purpose

To inform agencies of OSC’s automatic processing and to provide instructions for processing adjustments and changes.

Affected Employees

Employees represented by the Public Employees Federation (Bargaining Unit 05).

Background

Chapter 419 of the Laws of 2004 implements the agreement between the State of New York and the Public Employees Federation and provides for the following general salary increases and payments.

Effective Date(s)

Paychecks dated 12/15/04, Administration.
Paychecks dated 12/23/04, Institution.

Contract Provisions and Eligibility Criteria

April 1, 2004 General Salary Increase The legislation provides for a 2.5% Salary Increase for employees who, on or after the effective date of the increase, have a status of Active, Paid Leave, or Leave of Absence due to Workers’ Compensation or Military Leave, and are in graded, NS (SG 600), trainee (SG 800), and hourly positions.

• Payable 3/25/04 Administration and 4/01/04 Institution.
• Revised April 1, 2004 Salary Schedules
• Annual employees receive a 2.5% Increase rounded to the nearest dollar.
• Hourly employees receive a 2.5% Increase rounded to the nearest cent.

Exceptions:

• No Increase for FEE basis employees, except for employees budgeted as per diem with a Pay Basis Code of FEE.
• No Increase for employees who were on a Leave of Absence for a Reason unrelated to Workers’ Compensation or Military Leave on the effective date of the increase until the employee returns from leave.

Inconvenience Pay Increase The legislation provides for an increase in Inconvenience Pay to $550.00 effective 3/25/04 (Administration) and 4/01/04 (Institution).

Location Pay Increase The legislation provides an increase in Location Pay to $1230.00 for employees in NYC, Nassau, Rockland, Suffolk, and Westchester counties, effective 3/25/04 (Administration) and 4/01/04 (Institution).

Exceptions:

• No increase in Location Pay for employees in Department 51210 who are receiving Location Pay and the amount is other than $1200.00.
• The Location Pay for employees in Monroe County remains at $200.00 annually for eligible employees.

New Location Pay Area
The legislation provides for a new area to receive Location Pay. Eligible employees in the Mid-Hudson area of Orange, Dutchess, and Putnam counties will receive Location Pay in the amount of $615.00.

• New Earnings Code - LMH (Location Mid-Hudson)
• Effective 3/25/04 (Administration) and 4/01/04 (Institution)
• Employees must be full-time or on Voluntary Reduction and have a status of Active, Paid Leave of Absence, or Leave of Absence for Workers’ Compensation or Military Stipend.

Hazard Duty Pay Increase The legislation provides for an increase in the Hazardous Duty differential to $.60 an hour, effective 3/25/04 (Administration) and 4/01/04 (Institution).

Automatic Processing of Salary Increases

After payroll processing for Pay Periods 18 (Institution and Administration) is completed, OSC will automatically update Job Records to reflect the April 2004 Salary Increases for employees whose Pay Basis Code is ANN, CAL, 21P, and HRY. The records will be updated as follows:

• For employees who have a status of Active, Paid Leave (except Military Stipend), or Leave of Absence with a Reason Code of Workers’ Compensation on the effective date of the increase, OSC will insert a row in the employee’s Job Data record using the Action/Reason of PAY/SAC (Pay Rate Change/Mass Salary Increase) with an effective date of 3/25/04 (Administration) or 4/01/04 (Institution).
• OSC will insert a row effective 4/1/04 for Administration Extra Lag agencies and 3/25/04 for Institution Extra Lag agencies using the Action/Reason codes of PAY/SAC (Pay Rate Change/Mass Salary Increase).
• For employees who were Inactive or on Leave of Absence Without Pay for reasons unrelated to Workers’ Compensation or on a Paid Military Stipend Leave, the Salary Increase will be applied to the employee’s Job Data record only if the employee was subsequently returned to the payroll in BU 05. Rows will be inserted as of the effective date of the Rehire or the Return from Leave action using the Action/Reason codes of PAY/CSL (Pay Rate Change/Correct Salary).
• For employees who were newly appointed or were moved into a BU 05 position after the effective date of the increase, OSC will insert a row, effective the date of the Hire, Position Change or Transfer action using the Action/Reason codes PAY/CSL (Pay Rate Change/Correct Salary).
• All subsequent rows on the Job Data record will also be updated automatically by inserting additional rows with the Action/Reason codes of PAY/CSL (Pay Rate Change/Correct Salary) provided the employee remained in BU05.

Exceptions:

• If the employee’s status on a Job Row is Paid Leave of Absence with a Reason of Military Stipend, a row will not be automatically inserted. However, employees who went on Military Stipend Leave due to new military orders on or after the effective date of the increase are eligible for a recalculated military stipend based on the salary and Location Pay increases. Eligible employees’ records will be updated manually by OSC to reflect the increase.
• If the employee’s Job Data information does not match the information on Position Data, a row will not be automatically inserted.
• If the employee’s salary on a Job row is less than the hiring rate of the grade on the 2002 Salary Schedule, OSC will not insert a row to increase the employee’s salary.

Inconvenience Pay Full

For employees who are in BU 05 on or after the effective date of the Salary Increase (3/25/04 for Administration and 4/01/04 for Institution) and have an IPF row on the Additional Pay page in the amount of $500.00 that is effective on or after the effective date of the increase, OSC will update the existing IPF row to $550.00.

Inconvenience Pay Partial

For employees who are in BU 05 on or after the effective date of the increase (3/25/04 for Administration and 4/1/04 for Institution) and have an IPP row on the Additional Pay page that is effective on or after the effective date of the increase, OSC will update the existing IPP row as follows:

Current Amount	New Amount
$ 50	$ 55
$100	$110
$150	$165
$200	$220
$250	$275
$300	$330
$350	$385
$400	$440
$450	$495

Location Pay

For employees who are in BU 05 on or after the effective date of the increase (3/25/04 for Administration and 4/01/04 for Institution) and have an existing LOC row in the amount of $1200.00 on the Additional Pay page that is effective on or after the effective date of the increase, OSC will update the existing LOC row to $1230.00.

Employees Receiving Inconvenience and/or Location Pay and Changed Bargaining Units

• If after the effective date of the Location and Inconvenience Pay increases, an employee moved from BU 05 into a bargaining unit that is not eligible for these increases and the employee continued to be eligible to receive Location and/or Inconvenience earnings, OSC will manually insert a row, effective the date of the change in bargaining unit to reflect the reduced Location and/or Inconvenience earnings.
• If the employee was in a bargaining unit that was ineligible to receive the increase in Location and Inconvenience Pay earnings on or after the effective date of the increase and then subsequently had a position change or transfer action into BU 05 and continued to be eligible for Location and/or Inconvenience earnings, OSC will manually insert a row to reflect the increases in Location and/or Inconvenience pay, effective the date of movement into BU 05.

Location Pay - Mid-Hudson Area

OSC will automatically insert rows on the Additional Pay page, effective on or after the effective date of the new earnings (3/25/04 Administration and 4/1/04 Institution) for all employees who, on or after the effective date of the increase, are:

• in BU 05, and
• have a Full/Part-time indicator of F or V, and
• have a status of Active, Paid Leave of Absence (except if reason is MLS) or Workers’ Compensation Leave without pay, and
• are in one of the following agencies, and
• do not already have LOC or LOM earnings.

The Earnings Code LMH (Location Mid-Hudson) will be used and the amount is $615.00.

10050	Fishkill Correctional Facility
10080	Greenhaven Correctional Facility
10240	Downstate Correctional Facility
10280	Mid-Orange Correctional Facility
10290	Otisville Correctional Facility
10340	Beacon Correctional Facility
17080	Department of Transportation Region 8
50060	Hudson River Psychiatric
50100	Middletown Psychiatric
50440	Mid-Hudson Psychiatric

After the LMH rows are automatically inserted for the agencies identified above:

• OSC will manually update the Additional Pay page, as appropriate, to reflect changes in LMH earnings as a result of Job actions reported on the employee’s Job Data page (e.g. PLA, LOA, RFL).
• OSC will manually end LMH earnings on the Additional Pay page if an employee had LMH automatically added and the employee subsequently moved into an ineligible bargaining unit or agency not identified above.
• OSC will manually delete LMH rows for employees who had LMH automatically added and the agency notifies OSC, using the Action Reason of DTA/COR on the Job Action Request page, that the employee is ineligible for the earnings because the employee’s workstation is not located in Orange, Dutchess, or Putnam counties.

Processing of Raises for Employees with Increased Hiring Rates

OSC will automatically apply the Salary Increase to employees who have received an Increased Hiring Rate on or after 3/25/04 (Administration) or 4/01/04 (Institution).

The Salary Determination Unit will review and correct as necessary the salaries of all employees who have received an Increased Hiring Rate on or after the effective date of the increase provided the Earnings Code IHR (Increased Hiring Rate) was reported by the agency.

Agencies must review any transactions that have been processed with an effective date of 3/25/04 (Administration) or 4/01/04 (Institution) or later that included an Increased Hiring Rate in the employee’s salary but was not reported by the agency using Earnings Code IHR.

These salaries may need to be reduced if the Increased Hiring Rate was not eligible to be increased by the percentage increase.

Time Entry Earn Codes Established by Bargaining Unit

OSC has created Time Entry Earn Codes for certain earnings that have new amounts.

On 11/24/04, OSC will add the new Earn Codes stated below to applicable Earnings Programs N05, IT5, CT5, HS5 and SB5 effective 3/25/04. Agencies must use the new codes to report earnings earned on or after the effective date of the increase (3/25/04 Administration and 4/1/04 Institution).

• Institution and Administration agencies must submit the new Earn Codes commencing Pay Period 18.

  New Earn Code	Narrative Description	New Earnings Amount
  IIF	Intermittent Inc Pay PEF	$2.11
  IP9	Int Inc Pay PEF 3 Day	$3.52
  IM1	Int Inc Pay PEF 4 Day	$2.64
  OIP	Overtime with Int Inc Pay PEF	$.41

The following Earns Codes will be removed from the respective Earnings Programs effective 3/25/04. These Earn Codes should continue to be used to report earnings earned prior to the effective date of the increase.

OIS - Overtime with Intermittent Inc Pay
IIP - Intermittent Inconvenience Pay
IP1 - Intermittent Inc Pay - 4 Day
IP2 - Intermittent Inc Pay - 3 Day

The following Earn Codes will be updated to reflect the Increased amounts effective 3/25/04:

HZ1 – Hazard Pay -Straight Time
HZ2 – Hazard Pay - Overtime
II1 – Intermit Inc $14.95
II2 – Intermit Inc and Shift $15.99
II3 - Intermit Inc and Shift $19.37
NHE – Nurses Evening Shift
NHN – Nurses Night Shift

Automatic Retroactive Processing

OSC will automatically calculate retroactive payments resulting from the April 2004 General Salary Increase and the increases in Inconvenience Pay (IPF, IPP), and Location Pay (LOC), and the addition of LMH earnings.

For eligible employees who have worked in more than one agency and have been paid by all agencies using the same Employee Record Number since the effective date of the increases, all retroactive adjustments will be paid in the most current agency.

For eligible employees who have worked in more than one agency and have been paid from more than one Employee Record Number since the effective date of the increases, the retroactive adjustment for earnings in each Employee Record Number will be paid in the most current agency, on the appropriate pay cycle, under each Employee Record Number.

Retroactive Adjustments for Additional Pay and Time Entry Earnings

Time Entry Earn Codes that are calculated based on an employee’s salary rate and additional salary factors such as overtime (OTA) and holiday (HPA) will be automatically adjusted.

The following Earn Codes will be adjusted automatically:

• Contract Pay (CON), Extra Service hourly (ES1), Extra Time (EXT), Holiday Pay (HPA), Holiday Pay 1.5 (HPB), Holiday Pay-Hourly (HPH), Holiday Pay-Hourly 1.5 (HPI), Inconvenience Pay Full (IPF), Inconvenience Pay Part (IPP), Location Pay (LOC), Lump Sum Payment-Vacation (LSA), Lump Sum Payment-OT Accruals (LSB), Lump Sum Payment-Vol Reduct (LSH), LSP Vacation Hourly (LSL), LSP OT Accruals-Hourly Biweekly (LSN), Lost Time (LT1), OT for Annuals (OTA), OT Straight Rate for Annuals (OTB), OT-Hourly/Biweekly (OTK), Overtime Waiver (OTW), Paback LSP Hourly/Biweekly (PLB), Paback LSP-Contract Pay (PLC), Regular Pay Hourly (RGS), Recall Overtime (RCL), Regular Pay Salary Employee (RGS), Recall Standby OT (ROC), Standby-Classified (SBC), Salary LSP Hourly (SLB), Salary LSP Annuals (SLS)

Retroactive Adjustments for Employees Currently Inactive and Have Outstanding Overpayment

• For employees who are Inactive at the time of payment, the retroactive raise adjustment 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. If the amount of the positive earnings is not sufficient to deduct the entire Overpayment, the system will deduct the amount of positive earnings due and update the OVP Goal Balance accordingly.

Retroactive Payments for Workers’ Compensation Supplemental Programs

OSC will calculate retroactive adjustments for employees who received a Supplemental payment under the Workers’ Compensation Award and Supplemental program or the PEF Medical Evaluation program. OSC’s Workers’ Compensation Unit will enter the adjustment on the Time Entry page using the Earn Code AJR (Adjust Raise).

Retroactive Payments for Employees Receiving Military Stipends

For employees who were placed on Military Stipend Leave with or without pay on or after the effective date of the increases as a result of new military orders, OSC will recalculate the amount of military stipend.

• For those who received a stipend, the increase in biweekly stipend will be updated on the Job Data record by inserting a new row to reflect the new biweekly stipend amount. Any additional adjustment that is required due to the change in stipend that will not be calculated automatically by the retro process will be reported by OSC in the Time Entry page using the Earn Code ADJ.
• For those who did not receive a stipend, but became eligible for a stipend because of the increased salary, OSC will take the necessary action on the Job Data page and/or in the Time Entry page to pay the required increases.

Agency Actions Required

Job Record Reporting

Job Request or Position Data Actions for Employees Identified on the Control-D NHRP 709 Mass Salary Increase Exception Report

The Control-D Report NHRP 709 Mass Salary Increase Exception Report will be available for agency review prior to the processing of the automatic Salary Increases. This report will be available on 11/19/04 for Administration agencies and 11/24/04 for Institution agencies. The report will identify employees who have Job rows that will not be increased automatically because the Job row has a salary below the minimum hiring rate on the 2002 Salary Schedule or the data contained on the Job row is different than the data contained on Position Data, using the number stated in the NYS Position field. Note: Job rows that do not meet these conditions will be automatically increased.

One of the following messages will appear:

• Salary Below Minimum
• Position and Job Do Not Match

If an employee appears on this report but is due an increase, the agency must:

• Submit the necessary corrections on the Job Action Request page to correct the data on the incorrect Job row, using the appropriate Action/Reason code. After the row is corrected, the automatic increase will be applied.
• If the data on position is incorrect in PayServ, but is correct in NYSTEP, the agency must submit a position change request to Pat Schoof in the Personnel Processing Unit at (518) 474-9584. The position will be updated to reflect the change and the automatic increase will be applied provided the agency’s position request contains the same information as the position information in NYSTEP.

New Hires, Rehires, Position Changes, and Transfers Reported in the Same Period as the Automatic Increases

Agencies must report the old salary when processing pay changes, position changes, and transfers in the pay period in which the raise will be processed.

Employees in Job Titles Receiving Increased Hiring Rates

Although OSC will manually update rows that were increased via the mass salary increase update program for employees who were appointed after the effective date of the increase into a position that has an increased hiring rate, agencies should identify and review these employees prior to the raise being processed. After the manual updates are completed by OSC, agencies should notify OSC of any corrections required on the Job record in order to avoid an overpayment to the employee.

Terminating Hourly Employees Who Are No Longer Active

Since the increase will be automatically applied to all hourly employees who are Active on or after the effective date of the increases, the agency should terminate employees, effective the day after the last date worked if the employee is no longer employed by the agency.

Additional Pay Reporting

• When reporting Inconvenience and Location Pay earnings for employees in BU 05 in the pay period in which the automatic increase will be processed, the agency may use the new amount.
• When reporting adjustments for Location or Inconvenience Pay due to late hire, rehire, or mid-period change, the adjustment reported in Additional Pay should be calculated based on the new amount.
• When reporting LMH (Location Mid-Hudson) for eligible employees in agencies that will not have the earnings added automatically by OSC, the agency must insert rows, effective the date of the earnings, using the following information:

  Effective Date:	Enter the effective date of the LMH
  Earn Code:	LMH
  Annual Additional Earnings:	$615.00

• For employees for which LMH will be added by the agency, the agency must review the employee’s Job Record and insert the required additional LMH rows to:
  1. End earnings by inserting a row to end the earnings, if the employee becomes ineligible to receive the earnings, such as:
     • Termination
     • Retire
     • Leave of Absence for reasons unrelated to Workers’ Compensation
     • decrease in work percentage
     • Paid Leave of Absence for reason of Military Stipend
     • transfer or position change into a position that is not eligible for the earnings.
  2. Change the earnings by inserting a new LMH row with the amount of $615.00, if the employee went from full pay to a Paid Leave of Absence at less than full pay or is reinstated from a Paid Leave of Absence and the employee remains eligible for the earnings.
  3. Add the earnings for eligible employees who become eligible for the earnings, such as those who change from part-time status to full-time status, those who are reinstated from Leave without Pay or from a paid Military Stipend Leave, move into an eligible position or agency, etc.

Time Entry Reporting

• When reporting RGS and RGO earnings in the pay period in which the raise will be processed, the agency must use the increased salary to calculate the RGS or RGO amount. The payroll system will adjust RGS earnings reported in the current pay period.
• Agencies should use the following new Earn Codes to report these earnings in Pay Period 18 for Administration and Institution agencies. Agencies must discontinue using the former Earn Code as of this pay period, unless the earnings being reported are for work performed prior to 3/25/04, regardless of pay cycle:
  1. IIF - Intermittent Inc Pay PEF replaces Earn Code IIP
  2. IP9 - Int Inc Pay PEF 3 Day replaces Earn Code IP2
  3. IM1 - Int Inc Pay PEF 4 Day replaces Earn Code IP1
  4. OIP - Overtime with Int Inc Pay PEF replaces Earn Code OIS

• When reporting an earnings amount for an Earn Code that is calculated using the employee’s salary rate such as OTT (Out of Title Overtime), the agency may report the out of title earnings using the increased rate.

Reporting Retroactive Adjustments

The following Time Entry and Additional Pay earnings will not be adjusted automatically. Therefore, commencing in the pay period in which the raise is being processed, the agency may report the appropriate retroactive adjustments in the Time Entry page, using the Earn Code AJR and the appropriate Earnings Begin and End Dates. An explanation of the adjustment must be included in the Time Entry comments or on the General Comments page.

• ADJ Adjustment
• AIF Adjust Inconvenience Pay
• AIP Adjust Inconvenience Pay Part
• ALP Adjust Location Pay
• BAL Balance of Contract
• ES2 Extra Service Amount
• EXO Extra Time Override
• FEE (adjust only if employee is paid based on a per diem rate)
• FRC Fee Retirement Credit (adjust only if employee is paid based on a per diem rate)
• HZ1 Hazard Duty Straight Time
• HZ2 Hazard Duty Overtime
• IIP Intermittent Inconvenience Pay
• IP1 Intermittent Inconvenience Pay 4 Day
• IP2 Intermittent Inconvenience Pay 3 Day
• LSI Lump Sum Payment Override
• LTO Lost Time Override
• OIS Overtime with Inconvenience Pay
• OTO Overtime Override
• OTT Out of Title Overtime
• OWO Overtime Waiver Override
• PLO Paback LSP Override
• RGO Regular Salary Override
• SES Summer Session
• SLO Salary Lump Sum Payment Override
• SOO Standby OT Override
• SOV Standby Override

Reporting An Adjustment When Automatic Retroactive Adjustment Is Incorrect

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 these conditions and, if required, must submit the necessary adjustment of earnings in the Time Entry page, using the Earn Code AJR and appropriate Begin and End Dates.

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

1. If an employee had a check returned or exchanged on an AC230 for service dates on or after the effective date of the increase, the payroll system does not consider the AC230 when calculating the automatic retroactive adjustment. Therefore, the agency should review the automatic retroactive adjustment and determine the amount of the adjustment to be reported.
2. If an employee’s Pay Basis Code changed from HRY to ANN, CAL, or 21P, the agency must review the automatic retroactive adjustment and determine if it is correct. If the adjustment is not correct, the agency must report an adjustment of earnings.
3. If an employee was paid on an AC39 (Typewritten Payroll), the payroll system will not adjust the earnings processed on the AC39. The agency must report the adjustment of earnings.
4. ​​​​If an employee was on contract pay on or after the effective date of the increase and had a retroactive action reported that resulted in an overpayment of earnings, the retroactive adjustment may not be correct.
   • If the retroactive action was reported for the prior academic year, the agency should review the RCN earnings that will be automatically inserted into the Time Entry page in the pay period the increases are processed and determine if the amount of earnings is correct.
   • If the adjustment was incorrect for the current academic year, the agency should report a DTA/COR advising OSC of the adjustment reported in Time Entry and, if applicable, OSC will update the Goal Balance for CON earnings accordingly.
   • If the retroactive action was reported in the current academic year, the agency should review the amount of CON earnings that will be calculated for the pay period in which the raise is processed on the Additional Pay page and determine if the amount of CON earnings is correct. If applicable, the agency should report the adjustment in the Time Entry page.
5. For employees who had a Job Action (except contract employees) or Additional Pay change (LOC, IPP, IPF) reported since the effective date of the raise and the action reported resulted in an overpayment of earnings, the automatic negative retroactive adjustment may not have been processed because the overpayment was either not recoverable or recoverable using the OVP Earn Code or the AC230. In this case, the negative retroactive adjustment may be re-generated when the automatic increases are processed.
   OSC will manually turn off (not process) the automatic negative adjustment for these employees, since in most cases, the Overpayment was either not recoverable or recovered using another method. The agency is responsible for reviewing employees who meet these conditions to determine if an additional adjustment is required.
   OSC will provide a query to assist agencies in identifying employees whose retroactive adjustments had been previously turned off (not processed). Agencies should review the query results of employees and report the additional adjustment if required in the Time Entry page using the Earn Code AJR.

Control-D Reports Available After Raise Processing

The following reports will be available in Control-D after the automatic increases are processed:

• NHRP 709 Mass Salary Increase Exception Report
  This report will identify employees who did not receive an automatic increase on one or more Job Data rows as a result of the following:
  1. Salary Below Minimum
  2. Position and Job Do Not Match
• NHRP 703 Mass Salary Additional Pay Report
  This report will identify all employees who received an automatic increase in location (LOC) and/or Inconvenience (IPP, IPF) earnings or had Mid-Hudson Location Pay (LMH) automatically added.
• NHRP704 Mass Salary Payment Report
  This report will identify all employees who received the General Salary Increase. The report identifies the employee’s last salary that was automatically increased.

Payroll Register and Employee Paycheck/Advice

All retroactive adjustments will be displayed on the payroll register and the employee’s pay stub or direct deposit advice, except for contract earnings for the current academic year that will be included in the CON earnings due in the raise period.

Questions

Questions regarding General Salary Increases may be directed to the Salary Determination mailbox.

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