Purpose
To revise the procedures governing OSC’s review and approval of retroactive transactions.
Affected Employees
Agencies that submit retroactive transactions on behalf of their employees
Effective Date(s)
Immediately
Background
Although it is not always possible for agencies to complete their required processing steps by the effective date for all transactions, agencies must process salary changes in the payroll system as timely as possible.
Due to the increased frequency of retroactive transactions with an effective date greater than one year old, OSC has revised the submission procedures to ensure that any necessary documentation has been received by OSC and that agencies have received prior approval by the Bureau Director of OSC Payroll Services before submitting these transactions.
The procedures in this Bulletin supersede payroll Bulletin UCS-43 that was issued March 13, 2001.
Retroactive Transaction Procedures
Transactions retroactive a year or more:
All transactions that are retroactive a year or more must have prior approval by OSC before they are submitted. Transactions retroactive a year or more which do not have prior approval by OSC will be denied.
The following chart summarizes the revised guidelines governing the submission of retroactive transactions to OSC.
| Transaction Types | Submission Procedures |
|
May be reported no more than five (5) payroll periods retroactive without justification. This allows for a total of 60 business days (the current pay period plus five retroactive periods). |
|
May be reported no more than nine (9) payroll periods retroactive without justification. This allows payment for a total of 100 business days (the current pay period plus nine retroactive periods). There is no limit on retroactive payment of location pay when the entire agency is located in an eligible area. |
|
Position Changes should be submitted timely and will be approved no earlier than the effective date of the reclassification or reallocation of the position on the Position Data page. |
|
Reinstatements are payable from the effective date stated in the approval letter. Generally, this date coincides with or is subsequent to the Chief Administrator’s approval and therefore, no retroactivity is involved. In those rare instances where retroactive action may appear warranted, agency justification is required. |
Correction of Payroll Errors
There is no time limit on the correction of payroll errors (e.g. failure to pay increments or contractual salary increases to eligible employees). If an agency determines an employee has been paid a salary less than that authorized by law, the agency should submit the appropriate pay change(s) on the Job Action Request page. An explanation of the correction must be entered in the Status Reason block. If OSC determines the pay changes are warranted, the pay changes will be approved and an adjustment will be paid retroactive to the date of the error. Corrections retroactive a year or more must have prior approval by OSC before they are submitted.
Back Salary Awards
Retroactive transactions that result from the terms of a Court Order, Arbitrator's Award, Human Rights Decision, GOER or Grievance Settlement or Civil Service Commission Action must follow established Back Salary Award procedures. Refer to Payroll Bulletin #423 for more information.
Agency Responsibilities
Transactions that fall within the revised procedures:
In general, OSC will not require agencies to obtain advance approval or provide documentation on retroactive transactions that fall within the revised procedures. However, OSC reserves the right to require agencies to provide an explanation and/or documentation to substantiate specific transactions when warranted.
Transactions that exceed the revised procedures:
For transactions that exceed the revised procedures, agencies must provide an explanation/justification for the retroactive transaction on the General Comments page. In some cases, OSC may request supporting documentation to further substantiate the proposed transaction. Transactions submitted without General Comments will be denied by OSC.
Questions
Questions about this bulletin may be directed to the Payroll Earnings mailbox.