Purpose

To inform the agency of OSC’s automatic processing of the LLS payment and to provide instructions for payments not processed automatically.

Affected Employees

Longevity-eligible employees in BU67 with an Increment Code of 0510, 0610 or 0710

Background

Chapter 49 of the Laws of 2008 implemented the agreement between the State and Rent Regulation Services Unit (RRSU) and provides for 5 and 10 year* Longevity Lump Sum payments effective October 2012. The Longevity Lump Sum payments will be in the amount of $1,250 or $2,500 based on the eligibility criteria below.

*Employees who have been credited with Job Rate effective April 2005 or earlier have been established on the April payment cycle.

Effective Date(s)

Payment will be processed in a separate check dated October 24, 2012 (Administration). There will be no direct deposit for this payment.

Contract Provisions and Eligibility Criteria

Employees in graded positions (Grades 001-032) and NS (Grade 600) positions which are equated to grade are eligible for the payment provided the employee:

• Is on the payroll September 30, 2012 (Active, on Paid Leave of Absence, or a Military Stipend Leave) in a BU67 position; and
• As of September 30, 2012, has five (5) or more years of continuous service* at a base annual salary equal to or greater than the Job Rate for the employee’s current grade; and
• Did not receive an “Unsatisfactory” evaluation on their last rating date. Employees who were not rated or not reported as “Unsatisfactory” during the period will receive the payment.

*Continuous service, as used in determining eligibility for the LLS payment, is paid service (including part-time annual-salaried service, paid Military Leave and Sick Leave at Half Pay) or time on Workers’ Compensation Leave or Military Leave without Pay.

An employee who meets the continuous service eligibility requirement for payment in October 2012, but who receives an “Unsatisfactory” rating, will not receive a payment in October 2012 and will remain on the October payment cycle.

The following employees will become eligible for the LLS payment upon processing of Performance Advances in Pay Period 14L:

An employee occupying a position that has been previously reallocated, whose salary was equal to or greater than the Job Rate of the lower grade and whose salary upon application of the October 2012 Performance Advance reaches the Job Rate of the reallocated grade, is entitled to the Job Rate credit of the lower grade.

• The Increment Code of an employee receiving the October 2012 Performance Advance will be automatically updated from 1001 to 1210.
• These newly eligible employees will not receive an automatic LLS payment; therefore, the agency must submit transactions in Pay Period 15L to make the payments and update the increment codes. For instructions, see the section below entitled “Agency Actions – Payments to Employees Not Paid Automatically.”

The following employees will become eligible for the LLS payment during 2012-2013:

• An employee who otherwise qualifies but is on an approved Leave of Absence without Pay including Workers’ Compensation Leave or on a preferred list on September 30, 2012 and who returns from such leave between October 1, 2012 and September 30, 2013 is eligible for the payment. There is no minimum service requirement following the employee’s return to active payroll status. The agency should request the LLS payment in the same pay period the employee returns to active payroll status.
• Demotion after September 30, 2012 - An employee who is not eligible for the payment becomes eligible if the employee returns to a lower graded position between October 1, 2012 and September 30, 2013, provided the employee otherwise would have been eligible if the employee had been in the lower graded position on September 30, 2012 and remained in the lower graded position for at least six (6) pay periods; and
• The promotion was temporary and the employee has been reinstated to their previous position or has been appointed to another lower graded qualifying position; or
• The promotion was permanent, but the demotion occurred:
  • in lieu of layoff; or
  • voluntarily during the probationary period; or
  • as a result of failure of a probationary period.

The agency should request the LLS payment after the completion of six (6) full pay periods in the lower grade using the same effective date as the demotion.

An employee demoted as a result of a disciplinary action or who takes a voluntary demotion from a permanent position after the completion of a probationary period in the higher grade is not eligible for an LLS payment in the lower grade.

OSC Actions - Automatic Processing

For employees with Increment Code 0510, 0610 or 0710, OSC will automatically insert a row on the Additional Pay page using the Earnings Code LLS to make the payment. The payment amount is $1,250 for five (5) or more years or a prorated amount, as described below:

• Employees who are full-time on September 30, 2012 or full-time employees who are on a Paid Leave of Absence, Military Stipend Leave or on a Voluntary Reduction in Work Schedule (VRWS) receive the full payment amount.

Note: For employees on the Voluntary Reduction in Work Schedule program, the agency must verify that the Full/Part Time Indicator on the Job Data/Job Information page is “Voluntary.”

• Employees who are part-time on September 30, 2012 receive a prorated payment based on the employee's part-time percentage on September 30, 2012.
• Part-time employees who are on a Paid Leave of Absence or Military Stipend Leave on September 30, 2012 receive a prorated amount based on the employee's regular part-time percentage prior to the leave.

The Additional Pay page will be populated for eligible employees with the following:

Earnings Code:	LLS
Effective Date:	10/1/12
OT Effective Date:	10/1/12
Annual Additional Earnings:	Payment Amount
Earn End Date:	9/30/13

Agency Actions

Payments to Employees Not Paid Automatically

Payment will not be processed automatically for the following eligible employees:

• Increment Code 0069 – Employees whose current position was previously downward reallocated.
• Increment Code 2222 – Employees who are in a composite position.
• Employees whose status as of the eligibility date is leave without pay (except Military Stipend Leave).

Payment Processing in Pay Period 14L

Agencies should pay eligible employees with Increment Code 0069 or 2222 in pay period 14L.Agencies must also update the General Comments page for employees in composite positions.

Payment Processing Pay Period 15L and later

Agencies should pay eligible employees who return to the payroll in the pay period the return from leave is processed. The effective date of the return to payroll will determine the effective date of the payment. For example: If an Administration agency enters a transaction in Pay Period 16L for an employee who returned to the payroll on October 25, 2012, the effective date is 10/25/12 .

To Make A Payment

To pay an employee not processed automatically, enter the following information on the Additional Pay page:

Earnings Code:	LLS
Effective Date:	Enter eligibility date
OT Effective Date:	Same as effective date
Annual Additional Earnings:	Payment Amount
Earn End Date:	9/30/13

Correct an Increment Code

If the employee did not receive an automatic LLS payment because the increment code was incorrect, the agency must, in addition to submitting the LLS payment, submit a Job Action Request using the Action/Reason code of DTA/CIC (Data Change/Correct Increment Code). The appropriate increment code must be entered in the Increment Code field.

Employee Becomes Eligible for Payment Due to Demotion

If an employee was ineligible on September 30, 2012 and becomes eligible in 2012-2013 due to demotion as explained above, the agency should enter a comment on the General Comments page verifying the employee is eligible for LLS based on the reason the demotion occurred.

Employee Is No Longer Eligible for Payment to be Included in Calculation of Overtime Due to Position Change

If, after receiving the LLS payment, an employee is appointed to a position and their salary is below job rate of the new position they are no longer eligible to have the LLS included in the calculation of overtime. Agencies must update the end date of the LLS payment by inserting a row on the Additional Pay page as follows:

Earnings Code:	LLS
Effective Date:	Enter last date in eligible position (date immediately prior to position change)
OT Effective Date:	Same as effective date
Goal Balance	Reenter same Goal Balance of payment to be ended (to prevent initiating new payment)
Earn End Date	Same as effective date

Undeliverable Checks

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.

Retirement and Overtime Calculation Information

The LLS is a one-time, lump sum payment which is included as salary for retirement purposes and in the calculation of overtime compensation. The October 2012 Longevity Lump Sum payment will be included in the calculation of overtime earned from October 1, 2012 through September 30, 2013.

If an employee is appointed to a position and their salary is below job rate of the new position they are no longer eligible to have the LLS included in the calculation of overtime and the end date of the LLS payment must be updated to the last date the employee was eligible using the effective date immediately prior to the position change.

Refer to Agency Actions for instructions to end date the LLS payment to prevent continued inclusion of payment in calculation of overtime.

Control-D Reports and Preparation for Payment 

Prior to the automatic processing, the following report will be available:

NPAY756 Longevity Lump Sum (LLS) Eligibility Listing

This report is a preliminary listing of employees eligible for the LLS payment as of the date the report is run. The report will be available 9/11/12.

Agencies should review this listing carefully with particular attention to employees who are ineligible due to an “Unsatisfactory” evaluation on their last rating date.

Corrections to the preliminary listing should be submitted on the Correction Sheet. (The form may be duplicated if additional copies are needed.)  This form must be used to:

• Add employees who do not appear on the listing, such as:
  • Eligible employees in NS positions where the equated grade does not appear on the Position Data page. Agencies must submit documentation of the salary equation with the Correction Sheet.
  • Eligible employees who are in composite positions (identified by Increment Code 2222).
  • Employees whose positions were downward reallocated and were eligible based on the prior grade (identified by Increment Code 0069).
• Delete employees who should not appear on the listing.
  • Employees with an unsatisfactory rating on their last rating date.
  • For employees rated unsatisfactory, the Increment Code must be updated to 7777.
• Change incorrect information pertaining to an employee appearing on the listing.

Do not add employees whose eligibility will change due to transactions that will be processed prior to Pay Period 14 (Administration). Corrections sheets are required for employees with Increment Code 0069 or 2222 even though the agency is responsible for entering payment. Corrections should be submitted as soon as possible and must be received no later than September 28, 2012.  Please fax correction sheets to (518) 474-2601 or (518) 402-4949 and send an email to the Payroll Earnings mailbox to inform OSC that a correction sheet has been faxed. After the automatic processing is completed, the following report will be available:

NPAY770 One Time Payment Report

This report identifies all employees who received the automatic LLS payment.

Withholding Taxes

This payment is subject to Federal, State, and local income taxes and Social Security/Medicare employment taxes. Income taxes will be calculated using the Marital Status and Withholding allowances in effect in PayServ at the time of the payment. If there is an additional tax amount in the employee’s tax record, the additional tax will be deducted from both the regular paycheck and the separate check for the Longevity Lump Sum payment.

Deductions

Deductions will be taken for retirement normal contributions, garnishments, salary overpayments and Federal levies.

Payroll Register and Employee’s Paycheck

The Earnings Code LLS and the amount will be displayed on the payroll register. The earnings description, Longevity LSP, and the amount will be printed on the employee’s paycheck.

This payment will be made in a separate check regardless of when paid. There will be no direct deposit for this payment. The separate check will be issued along with the employee’s regular paycheck or direct deposit advice for the pay period in which payment is processed.

Questions

Questions related to eligibility and payment may be directed to the Payroll Earnings mailbox.

Questions related to Deductions may be directed to the Payroll Deduction mailbox.

Questions related to withholding taxes may be directed to the Tax and Compliance mailbox.