Purpose

To provide new earnings codes and procedures for processing the 2011-2012 SCF CSEA Deficit Reduction Plan

Affected Employees

Employees in bargaining unit 97 – CSEA Administrative Services

Excludes employees with an hourly rate less than $7.57

Background

Pursuant to the Memorandum of Agreement between the State University Construction Fund and the Civil Service Employee Association, employees shall have their salary reduced over the course of the remainder of the 2011-2012 fiscal year.

Effective Date(s)

The 2011-2012 SCF CSEA Deficit Reduction Plan will commence Administration Pay Period 20L and will continue through Administration Pay Period 25L.

Attachment A provides a breakdown of the SCF CSEA Deficit Reduction Plan period by check date and includes the pay period number, pay period begin date and pay period end date.

New Earnings Codes

OSC has created new earnings codes to process the SCF CSEA Deficit Reduction Plan:

Automatic Set up of the D1F Additional Pay Record - OSC

In Administration Pay Period 20L, OSC will insert a row on the Additional Pay page for employees who meet ALL of the following criteria:

• Employee is in an eligible bargaining unit as defined above on the last day of the above pay period.
• Employee has an Employee Status of Active, Leave with Pay or Leave of Absence on the last day of the above pay period.
• Employee was not in an ineligible bargaining unit (one not defined above) with an Employee Status of Active or Leave with Pay any time during the above pay period.

Exception: The Additional Pay record will not be created automatically for employees in a composite position (identified by Increment Code 2222) since the system cannot determine if the hidden position is in an eligible bargaining unit.

The inserted row on the Additional Pay page will be set up as follows:

Manual Set up of the D1F Additional Pay Record - Agency

Employees Not Meeting Automatic Set Up Criteria

Agencies are responsible for creating the Additional Pay record for those employees who do not meet the criteria in the Automatic Set Up section but who are in an eligible bargaining unit with an Employee Status of Active or Leave with Pay any time during Administration Pay Period 20L.

The Additional Pay record should be set up as follows:

Newly Eligible Employees

Agencies are also responsible for creating the Additional Pay record for employees who are hired, rehired, concurrently hired or transferred into an eligible bargaining unit with an Employee Status of Active or Leave with Pay after the initial pay period through Administration Pay Period 25L. Agencies must also create or restart the Additional Pay record if an employee returns from a Leave of Absence to an eligible bargaining unit with an Employee Status of Active or Leave with Pay during the SCF CSEA Deficit Reduction Plan period.

The Additional Pay record should be set up as follows:

Note: An Additional Pay record using Earnings Code D1F should only be created for an employee in a composite position (identified by Increment Code 2222) if the bargaining unit of each position making up the composite position is eligible as defined above. Otherwise, the agency should submit the deficit reduction amount each pay period using the Time Entry deficit reduction code (see Processing Adjustments section).

Calculating the Deficit Reduction Amount – D1F (Additional Pay)

Each pay period, the system will calculate the deficit reduction amount for employees with a D1F record that was active any time during the pay period being processed regardless of whether the employee was in an eligible bargaining unit. The system will total all monies for the following earnings codes where the earnings end date falls within the pay period dates being processed and multiply the result by -.04167.

As with other Additional Pay Earnings Codes, it may be necessary to submit an adjustment in order to calculate the correct deficit reduction amount.

Employees No Longer Subject to the SCT CSEA Deficit Reduction Plan

If an employee transfers into a bargaining unit that is not subject to the SCF CSEA Deficit Reduction Plan, the agency must insert a row on the Additional Pay page for Earnings Code D1F and insert an End Date equal to the last date the employee is in an eligible bargaining unit.

Processing Adjustments – D2F (Time Entry)

If an employee is in both an eligible and ineligible bargaining unit during a pay period and has a D1F record active any time during the same pay period, the system will calculate the deficit reduction amount on all eligible earnings where the earnings end date falls within the pay period dates being processed. It is the agency’s responsibility to determine the monies that should not have been included in the deficit reduction amount, calculate the adjustment amount and submit a positive adjustment using Earnings Code D2F.

In addition, the system will not include any monies paid using one of the eligible earnings codes listed above for earnings in an eligible bargaining unit where the earnings end date is prior to the pay period begin date for the pay period being processed. It is the agency’s responsibility to determine those monies that should have been included in the deficit reduction amount and submit a negative adjustment using Earnings Code D2F.

As mentioned above, an Additional Pay record using Earnings Code D1F should not be created for an employee in a composite position (identified by Increment Code 2222) if the bargaining unit of each position making up the composite position is not eligible as defined above. Therefore, it is the agency’s responsibility to total the portion of monies paid each pay period for any of the eligible earnings codes listed above that are earned during the deficit reduction period in an eligible bargaining unit, calculate the deficit reduction amount and submit a transaction using Earnings Code D2F.

A Time Entry transaction should be submitted as follows:

Control-D Report NPAY729

In order to assist agencies in identifying monies that should be included in the adjustment calculation, OSC created Control-D report NPAY729 (Earnings Requiring an Adjustment to the Deficit Reduction Calculation). This report identifies employees who have earnings in Paycheck Data for one or more of the earnings codes listed above provided:

• The earnings end date is less than the pay period begin date associated with the check date on the report; and
• The earnings end date falls within the deficit reduction period; and
• The employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay on the earnings end date for the specified earnings code.

The report is available the Thursday after the payroll period is confirmed.

The report is sorted by Employee Name and then by Earnings Begin Date and Earnings Code. Fields on the report include Emplid, Employee Record Number, Employee Name, Earnings Code, Earnings Begin Date, Earnings End Date, Hours, Earnings Amount and Addl DRP and Description.

Processing Deficit Reduction – D2F (Time Entry)

Monies earned during the SCF CSEA Deficit Reduction Period while in an eligible bargaining unit using any of the earnings codes listed below are also subject to the deficit reduction but will not be calculated automatically.

Therefore, it is the agency’s responsibility to total monies paid each pay period for any of these earnings codes that are earned during the deficit reduction period while in an eligible bargaining unit, calculate the deficit reduction amount and submit a Time Entry transaction as follows:

If the agency subsequently reduces the monies earned for any of the earnings codes listed above during the deficit reduction period, a corresponding Deficit Reduction Time Entry transaction should also be submitted to reduce the deficit reduction amount. The amount would be calculated by multiplying the adjustment to the earnings amount by +.04167.

Note: Monies earned using Earnings Code BSA or S3G, monies earned using one of the adjustment codes and monies paid retroactively or as the result of a correction, should be handled on a case by case basis depending on whether the monies were earned during the deficit reduction period.

Control-D Report NPAY726

In order to assist agencies in identifying monies that should be included in the Deficit Reduction Time Entry calculation, OSC created Control-D report NPAY726 (Earnings Requiring a Manual Deficit Reduction Calculation). This report identifies employees who have earnings in Paycheck Data for one or more of the earnings codes listed above provided:

• The earnings end date falls within the deficit reduction period; and
• The employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay on the earnings end date for the specified earnings code.

The report is available the Thursday after the payroll period is confirmed.

The report is sorted by Employee Name and then by Earnings Begin Date and Earnings Code. Fields on the report include Emplid, Employee Record Number, Employee Name, Earnings Code, Earnings Begin Date, Earnings End Date, Hours, Earnings Amount and Addl DRP and Description.

Earnings Not Subject to the Deficit Reduction

Monies earned during the deficit reduction period while in an eligible bargaining unit in any of the following categories are not subject to the deficit reduction.

• Bonus Pay
• Fringe Benefits
• Holiday Pay
• Longevity Payments
• Lost Time
• Lump Sum Payments for Accruals
• Overtime Pay
• Overtime Meals
• Statutory Workers’ Compensation Benefits
• Unpaid Leave

Summary of Agency Actions

Agencies are responsible for the following actions:

• Create the D1F record for employees who do not meet the criteria in the Automatic Set Up section
• Create the D1F record for newly eligible employees after the initial pay period
• Create the D1f record for employees in a composite position where the bargaining unit of each position making up the composite position is eligible
• Calculate and submit an D2F transaction for employees in a composite position where the bargaining unit of at least one position making up the composite position is not eligible
• Calculate and submit a positive D2F transaction when monies earned in an ineligible position are included in the D1F calculation
• Calculate and submit a negative D2F transaction when eligible monies are paid outside of the pay period being processed
• Calculate and submit a negative D2F transaction for eligible monies paid using those earnings codes in the Processing Deficit Reduction – D2F section
• Calculate and submit a positive D2F transaction when a reduction of the eligible monies included in the original D2F transaction occurs

Payroll Register and Employee’s Paycheck/Advice

Where appropriate, the following earnings codes and the associated amounts will be displayed on the payroll register. The earnings code description and amount will be displayed on the employee’s paycheck stub and/or direct deposit advice.

Additional Information

Additional information and clarification may be provided in a subsequent payroll bulletin or posted on the PayServ Bulletin Board as it becomes available.

Questions

Questions regarding the Payroll processing of the SCF CSEA Deficit Reduction Plan should be directed to the Payroll Earnings mailbox.

Questions regarding the impact on taxes or deductions as it relates to the SCF CSEA Deficit Reduction Plan should be directed to the Payroll Deductions mailbox.