Purpose

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

Background

Chapter 49 of the Laws of 2008 implementing the agreement between the State of New York and the Rent Regulation Services Unit provides for a retroactive 3% General Salary Increase and increases to Longevities and Overtime Meals effective April 1, 2007.

The agreement also provides for a retroactive 3% General Salary Increase and increases to Longevities and Location Pay effective April 1, 2008.

Affected Employees

Employees in Bargaining Unit 67 who meet the eligibility criteria

Effective Date

Paychecks dated 6/11/08

Contract Provisions and Eligibility Criteria

April 1, 2007 Retroactive General Salary Increase

The legislation provides for a retroactive 3% Salary Increase for employees in graded and NS (SG 600) positions, trainees (SG 800) and hourly employees.

• Payable 4/5/07 (Administration).
• Revised April 1, 2007 Salary Schedules are attached.
• Annual employees receive a 3% increase rounded to the nearest dollar.
• Hourly employees receive a 3% 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.

April 1, 2007 Retroactive Longevity Increase

The legislation provides for an increase in the five (5) and ten (10) year Longevity payments for employees in graded and NS equated to grade positions to the following amounts:

• 4/5/07 (Administration)

5 Year	$950.00
10 Year	$1,900.00

April 1, 2007 Retroactive Overtime Meals Increase

The legislation provides for an increase to the Overtime Meal Allowance to $6.00 effective 4/5/07 (Administration).

April 1, 2008 Retroactive General Salary Increase

The legislation provides for a retroactive 3% Salary Increase for employees in graded and NS (SG 600) positions, trainees (SG 800) and hourly employees.

• Payable 4/3/08 (Administration).
• Revised April 1, 2008 Salary Schedules are attached.
• Annual employees receive a 3% increase rounded to the nearest dollar.
• Hourly employees receive a 3% 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.

April 1, 2008 Retroactive Longevity Increase

The legislation provides for an increase in the five (5) and ten (10) year Longevity payments for employees in graded and NS equated to grade positions to the following amounts:

• 4/3/08 (Administration)

5 Year	$1,050.00
10 Year	$2,100.00

April 1, 2008 Retroactive Location Pay Increase

The legislation provides an increase to $1,850 for employees in NYC, and Nassau, Rockland, Suffolk and Westchester counties, effective 4/3/08.

OSC Actions: Automatic Processing of Increases

After payroll processing for Pay Period 4 is completed, OSC will automatically update Job Data records to reflect the April 2007 and April 2008 Salary and Longevity Increases for employees whose Pay Basis Code is ANN and HRY.  The records will be updated as follows:

• For employees who have a status of Active, Paid Leave of Absence (except Military Stipend), or Leave of Absence with a Reason Code of WDL, WSP, WCL or WPS on the effective date of the increase, OSC will insert a row in the employee’s Job Data record using the Action/Reason codes of PAY/SAC (Pay Rate Change/Mass Salary Increase) with an effective date of 4/5/07 for the April 2007 Increase and 4/3/08 for the April 2008 Increase.
• For employees who were Inactive or on a Leave of Absence (excluding WDL, WSP, WCL or WPS), the Salary Increases will be applied to the employee’s Job Data record only if the employee was subsequently returned to the payroll in Bargaining Unit 67.  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 Annual employees and PAY/CRT (Pay Rate Change/Change Rate) for hourly employees.
• For employees who were newly appointed or were moved into a Bargaining Unit 67 position after the effective date of an increase, OSC will insert a row effective the date of the Hire, Position Change or Transfer action using the Action/Reason codes of PAY/CSL (Pay Rate Change/Correct Salary) for Annual employees and PAY/CRT (Pay Rate Change/Change Rate) for hourly employees.
• All subsequent rows on the Job Data record will also be updated automatically by inserting additional rows using the Action/Reason codes of PAY/CSL (Pay Rate Change/Correct Salary) for Annual employees and PAY/CRT (Pay Rate Change/Change Rate) for hourly employees provided the employee remained in Bargaining Unit 67.

Exceptions:

• If the employee’s status on a Job Data 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 NYS Grade equals 600 and the Equated to Grade and Approved Salary Rate fields on Position Data are populated, a row will not be automatically inserted.
• 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 Data row is less than the Hiring Rate of the grade on the existing 2007 Salary Schedule, OSC will not insert a row to increase the employee’s salary.

Salary Calculation for Employees Holding Longevity

Employees who are holding Longevity will have their April 2007 increase applied as follows:

If the Employee’s Current Increment Code is:	and Based on the Existing 2007 Salary Schedule the Employee’s Current Salary is:	Begin with the Employee’s Current Salary and Calculate New Salary as follows:
1976-1996	N/A	Apply 3% + $200
1997	= Longevity Step 2	Bring to same step on new 2007 Salary Schedule
1997	> Longevity Step 2	- $1700, apply 3% + $1900
1998-2001, 0010, 0110	N/A	Apply 3% + $100
2002, 0210	= Longevity Step 1	Bring to same step on new 2007 Salary Schedule
2002, 0210	> Longevity Step 1	- $850, apply 3% + $950

Employees who are holding Longevity will have their April 2008 increase applied as follows:

If the Employee’s Current Increment Code is:	and Based on the Existing 2007 Salary Schedule the Employee’s Current Salary is:	Begin with the Employee’s Current Salary and Calculate New Salary as follows:
1976-1996	N/A	Apply 3% + $200, apply 3% + $200
1997	= Longevity Step 2	Bring to same step on the new 2007 Salary Schedule, apply 3% + $200
1997	> Longevity Step 2	- $1700, apply 3% + $1900, apply 3% + $200
1998	= Longevity Step 2	Bring to same step on the 2008 Salary Schedule
1998	> Longevity Step 2	- $1700, apply 3%, apply 3% + $2100
1999-2001, 0010, 0110	N/A	Apply 3% + $100, apply 3% + $100
2002, 0210	= Longevity Step 1	Bring to same step on new 2007 Salary Schedule, apply 3% + $100
2002, 0210	> Longevity Step 1	- $850, apply 3% + $950, apply 3% + $100
2003	= Longevity Step 1	Bring to same step on 2008 Salary Schedule
2003	> Longevity Step 1	- $850, apply 3%, apply 3% + $1050

Note: Grade 018 employees who are holding a Merit Step will have their current salary compared to the Merit Longevity Step 1 or Merit Longevity Step 2.

Location Pay

OSC will automatically increase eligible employees’ Location Pay (LOC) on the Additional Pay page from $1,302 to $1,850 effective 4/3/08.

Automatic Retroactive Processing

OSC will automatically calculate retroactive payments resulting from the April 2007 and April 2008 General Salary, Longevity and Location increases.

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 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:

• Extra Time (EXT), Holiday Pay (HPA), Lump Sum Payment-Vacation (LSA), Lump Sum Payment-OT Accruals (LSB), Lump Sum Payment-Vol Reduct (LSH), Lost Time (LT1), OT for Annuals (OTA), OT Straight Rate for Annuals (OTB), Regular Pay Salary Employee (RGS), Salary LSP Annuals (SLS)

Retroactive Adjustments for Employees Currently Inactive Who Have an 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 possible and update the OVP Goal Balance accordingly.

Retroactive Payments for Workers’ Compensation Supplemental Program

OSC will calculate retroactive adjustments for employees who received a Supplemental payment under the Workers’ Compensation Award and Supplemental program. OSC’s Workers’ Compensation Unit will enter the adjustment on the Time Entry page using the earn code WCA (Workers Comp Adjustment).

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

Overtime Meals

For employees who are in Barging Unit 67 who have received OMB (OT Meals) payments with an Earnings End Date on or after the effective date of the Overtime Meal Allowance increase (4/5/07 for Administration), agencies must enter the appropriate adjustment using the new Time Entry earn code A40 (Retro Adj OT Meals).

Employees who received Overtime Meal Allowances (OMB) in 2007 are due an adjustment of $.50 per meal.

OSC has created two new earn codes to be used to pay Overtime Meals to Bargaining Unit 67 employees at $6.00 per meal:

• OMX (OT Meals Housing Ineligible)
• OMW (OT Meals Housing Eligible)

The new codes must be used for transactions submitted in Pay Period 4 and after.

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

Agencies must report salaries based on the existing 2007 Salary Schedule 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

Employees who receive an Increased Hiring Rate on or after the payment effective date may not be entitled to have the increase applied to their entire salary. OSC will manually update the salaries after the automatic increase is applied. Agencies should notify OSC of any corrections required as soon as possible 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.

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 not adjust RGS earnings reported in the current pay period.
• 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 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
• BSA Back Salary Award
• ES2 Extra Service Amount
• LSI Lump Sum Payment Override
• LTO Lost Time Override
• OTO Overtime Override
• OTT Out of Title Overtime
• RGO Regular Salary Override
• SLO Salary Lump Sum Payment 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 AC 230 for service dates on or after the effective date of the increase, the payroll system does not consider the AC 230 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, 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 AC 39 (Typewritten Payroll), the payroll system will not adjust the earnings processed on the AC 39. The agency must report the adjustment of earnings.
4. For employees who had a Job Action 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 AC 230. In this case, the negative retroactive adjustment may be re-generated when the automatic increases are processed.

If an employee has previously had a negative retroactive adjustment calculated by the system, it is the agency’s responsibility to review the new retroactive calculation for this raise in order to determine if any new negative calculated retroactive adjustments must be addressed again.

The agency must then inform OSC on how to handle the negative retroactive adjustment by entering the instructions on the General Comments page.

If any additional adjustments are required, the agency should report them on the Time Entry page using the earn code AJR.

Control-D Reports Available Prior to Raise Processing

NHRP709 Mass Salary Increase Exception Report

The NHRP709 will be available for agency review prior to the processing of the automatic increases. The report will be available after 5/15/08 and identifies employees who will not receive an automatic increase. The report identifies the reason the employee’s salary will not be increased with one of the following messages:

• Position and Job Do Not Match
• Sal Below Hiring Rate
• NYS Position Has Both Equated Grade and NTE

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 Data row(s), using the appropriate Action/Reason code.After the row(s) is corrected, the automatic increase will be applied.
• If the data on Position Data is incorrect in PayServ but is correct in NYSTEP, submit a position change request to Dave Lynch in the Personnel Processing Unit at (518) 476-3889.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.

Control-D Reports Available After Raise Processing

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

• NHRP709 Mass Salary Increase Exception Report
  This report identifies all employees who did not receive an automatic Salary or Longevity Increase on one or more Job Data rows. The report identifies the reason the employee’s salary was not increased with one of the following:
  • Position and Job Do Not Match
  • Sal Below Hiring Rate
  • NYS Position Has Both Equated Grade and NTE
• NHRP704 Mass Salary Payment Report
  This report identifies all employees who received the Salary or Longevity Increase. The report identifies all of the employee’s salaries that were automatically increased.
• NHRP703 Mass Salary Additional Pay Report
  This report identifies all employees who received an automatic increase for Location Pay (LOC) earnings.

Deduction Information

All general deductions for employees whose status is Terminated, Retired or Deceased will be automatically cancelled by OSC with the exception of the following:

Code	Narrative
410	Health Care Spending Account
420	NY Dependent Care Contribution
425	Repay State Loans/Debt
426	Higher Ed Repay State Loan
428	Dependent Care
433	Total Unemployment Ins Owed
500	Medicare Deficiency
501	Social Security Deficiency
GARNSH	Garnishments
HIATRG	Regular After Tax Health
HIATSP	Special After Tax Health Adj
HIBTRG	Regular Before Tax Health
HIBTSP	Special Before Tax Health Adj

Undeliverable Checks

Inactive employees may be eligible for a payment as a result of the adjustments. 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 Tax and Finance, Division of Treasury, per instructions in Payroll Bulletin No. 456.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P) and a Report of Check Exchange (Form AC 1476-P).

For recipients of a previously deceased employee's payroll checks where a Next of Kin Affidavit and Report of Check Exchange forms have been submitted, OSC will accept a photocopy of these forms to process the exchange of the check.

Payroll Register and Employee Paycheck/Advice

All retroactive adjustments will be displayed on the payroll register and the employee’s paycheck stub or direct deposit advice statement.

Questions

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