Purpose:
The purpose of this bulletin is to provide the Division of Housing and Community Renewal instructions for processing the 2024 RRSU Over40 Comp Time II Cash Out.
Affected Employees:
Employees in the Rent Regulations Services Unit – BU67 who have opted to participate in the Over40 Comp Time II Cash Out program are affected.
Background:
Pursuant to the side letter contained in the 2021-2023 Agreement between the State of New York and the Rent Regulation Services Unit (RRSU), represented by District Council 37 of AFSCME, AFL-CIO (DC-37), and continues based on the 2023-2026 Memorandum of Understanding, employees are permitted to cash out up to 120 hours of accrued Over40 Comp Time II credits in each year of the program.
The Office of Employee Relations (OER) Memorandum dated 10/24/2024 provides additional information.
Effective Dates:
The 2024 RRSU Over40 Comp Time II Cash Out should be processed in the following pay periods:
| Pay Period | Effective Date | Check Date |
|---|---|---|
| Administration Pay Period 17L | 11/20/2024 | 12/04/2024 |
Eligibility Criteria:
Employees who have accrued Over40 Comp Time II credits are eligible to cash out up to 120 hours once per year. Employees do not need to be currently enrolled in the Over40 Comp Time II program or be currently employed in an eligible position to participate in the annual cash out.
The payment is calculated at the straight time rate based on the employee’s salary on the Effective Date.
Agency Actions:
To pay the 2024 RRSU Over40 Comp Time II Cash Out to eligible employees, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using Earnings Code D40 (for annual employees) or Earnings Code DH4 (for hourly employees):
| Earnings Begin Date: | Appropriate Effective Date or last day the employee is Active |
|---|---|
| Earnings End Date: | Same as Earnings Begin Date |
| Earn Code: | D40 (for annual employees) DH4 (for hourly employees) |
| Hours: | Number of hours to be paid |
Miscellaneous Payment Information:
The RRSU Over40 Comp Time II Cash Out is pensionable but is not included in the calculation of overtime.
Tax Information:
These monies are taxable income subject to all employment taxes and income taxes, will be included in the employee’s taxable gross, and will be 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).
Payroll Register and Employee’s Paycheck/Advice:
A description and the amount paid will appear on the employee’s paycheck stub or direct deposit advice.
| D40 | Over 40 Cash Out |
|---|---|
| DH4 | Over 40 Hourly Cash Out |
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 this bulletin may be directed to the Payroll Earnings mailbox.
Questions regarding tax information may be directed to the Tax and Compliance mailbox.