Page 1 of 7 Date: March 21, 2012 Bulletin Number: 1142 Subject Purpose Affected Employees 2012-2013 Deficit Reduction Plan for Employees Represented by the Public Employees Federation (PEF) To inform agencies of new earnings codes and procedures for processing the 2012-2013 PEF Deficit Reduction Plan. Employees in bargaining unit 05 Professional, Scientific and Technical Services Unit (PS&T). Excludes employees with an hourly rate less than $7.39. Background Effective Date(s) Pursuant to Section 7 of Part A of Chapter 491 of the Laws of 2011 and the Division of the Budget Bulletin B-1196 issued November 8, 2011, a plan has been established to reduce the compensation of any employee within the purview of the agreement between the State of New York and the Public Employees Federation. The 2012-2013 PEF Deficit Reduction Plan will commence Institution Pay Period 25L/26C and Administration Pay Period 26L/1C and will continue through Institution Pay Period 24L/25C and Administration Pay Period 25L/26C. Attachment A provides a breakdown of the PEF Deficit Reduction Plan period by check date and includes the pay period number, pay period begin date, and pay period end date for each pay type. New Earnings Codes OSC has created new earnings codes to process the PEF Deficit Reduction Plan. Additional Pay Earnings Codes Description D4P 12-13 PEF DRP 1.847% (Retro Code R4P) Time Entry Earnings Codes Description D5P 12-13 PEF DRP Oth 1.847% Automatic Set up of the D4P Additional Pay Record OSC In Institution Pay Period 25L/26C and Administration Pay Period 26L/1C, 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
Page 2 of 7 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: Earnings Code: Effective Date: Earnings: End Date: D4P First day the employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay in the above pay period; otherwise, first day the employee is in an eligible bargaining unit with an Employee Status of Leave of Absence in the above pay period The field will be left blank; the system will calculate the D4P amount based on the eligible earnings Pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C Manual Set up of the D4P 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 Institution Pay Period 25L/26C or Administration Pay Period 26L/1C. The Additional Pay record should be set up as follows: Earnings Code: Effective Date: Earnings: End Date: D4P First day the employee is in an eligible bargaining unit with an Employee Status of Active or Leave with Pay in the above pay period The field must be left blank; the system will calculate the D4P amount based on the eligible earnings Last day the employee is in an eligible bargaining unit; if employee remains in an eligible bargaining unit at the end of the above pay period, use the pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C 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 Institution Pay Period 24L/25Cor Administration Pay Period25L/26C. 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 PEF Deficit Reduction Plan period. The Additional Pay record should be set up as follows: Earnings Code: Effective Date: D4P Date of the hire, rehire, concurrent hire, transfer or return from leave transaction into an eligible bargaining unit with an Employee Status of Active or
Page 3 of 7 Earnings: End Date: Leave with Pay within the SCF CSEA Deficit Reduction Plan period The field must be left blank; the system will calculate the D4P amount based on the eligible earnings Pay period end date for Administration Pay Period Period 24L/25C or Administration Pay Period 25L/26C Calculating the Deficit Reduction Amount D4P (Additional Pay) Note: An Additional Pay record using Earnings Code D4P 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). Each pay period, the system will calculate the deficit reduction amount for employees with a D4P 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 -.01847. Earnings Code CON FEE FRC GEO IPF IPP LEP LMH LOC LOM MSP RGH RGO RGS SCO SDF SWB SWC SWO SWP TSP Description Contract Pay Regular Earnings Fee Fee Retirement Credit Geographic Pay Inconvenience Pay Full Inconvenience Pay Part Non-Taxable Lieu of Expense Location Mid-Hudson Location Pay Location Pay Other Amount Military Stipend Payment Regular Pay Hourly Employee Regular Pay Override Regular Pay Salary Employee Salary Withholding Override Shift Differential Salary Withholding Biwkly/Hrly Salary Withholding Contract Pa Salary Withholding Override Salary Withholding Program Military Training Stipend Employees No Longer Subject to the PEF Deficit Reduction Plan As with other Additional Pay Earnings Codes, it may be necessary to submit an adjustment in order to calculate the correct deficit reduction amount. If an employee transfers into a bargaining unit that is not subject to the PEF Deficit Reduction Plan, the agency must insert a row on the Additional Pay page for Earnings Code D4P and insert an End Date equal to the last date the employee is in an eligible bargaining unit. Processing Adjustments D5P (Time Entry) If an employee is in both an eligible and ineligible bargaining unit during a pay period and has a D4P 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 D5P.
Page 4 of 7 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 CodeD5P. As mentioned above, an Additional Pay record using Earnings Code D4P 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 D5P. A Time Entry transaction should be submitted as follows: Earnings Begin Date: Earnings End Date: Earn Code: Amount: First earnings begin date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed Last earnings end date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed D5P Total adjustment amount can be negative or positive Control-D ReportNPAY729 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 D2P Monies earned during the PEF 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
Page 5 of 7 (Time Entry) calculated automatically. Earnings Code Description ACN Adjustment for Contract Earning AGP Adj Geographic Pay AIF Adj Inconvenience Pay Full AIP Adj Inconvenience Pay Part ALP Adj Location Pay AMS Adjust Military Stipend AS5 Addtl Sft Comp Hourly ASD Adj Shift Diff BAL Balance of Contract BSA Back Salary Award EC1 Extra Serv Clin Teacher Multi EC2 Extra Serv Clin Teacher Single EH1 Extra Serv Physician 76 Multi EH2 Extra Serv Physician 76 Single EP1 Extra Serv Physician Multi EP2 Extra Serv Physician Single ER1 Extra Serv Multi 7.5 HR ER2 Extra Serv Multi 8 Hr ER3 Extra Serv Multi OT ER4 Extra Serv Single 7.5 HR ER5 Extra Serv Single 8 HR ER6 Extra Serv Single OT ES1 Extra Service Hourly ES2 Extra Service Amount EXO Extra Time Override EXT Extra Time II1 Intermittent Inc & Shift 1 II2 Intermit Inc and Shift Evening II3 Intermit Inc and Shift Night IIF Intermittent Inc Pay PEF IIO Intermittent Inc/Shift Overrid IM1 Intermittent Inc Pay PEF-4 day IP1 Intermittent Inc Pay-4Day IP2 Intermittent Inc Pay-3Day IP9 Intermittent Inc Pay PEF-3 day IPS Inc Pay Seasonal HRY IS1 Intermittent Shift 1 IS2 Intermit Shift Diff Evening IS3 Intermit Shift Diff Night ISO Intermittent Shift Override IWO Intermit Week-end Shift Ovr LCA Seasonal Loc Pay 8 hour LCB Seas Loc Over 1520 8 hr. LCC Seasonal Loc Pay 7.5 hrs. LCD Seas Loc Over 1425 7.5 hr. LCE Seas Loc Pay Mid Hudson-8 hr. LCF Seas LOC Mid Hud over 1520 8hr LCG Seasonal LOC Mid Hud 7.5 hr. LCH Sea LOC Mid Hud ovr 1425-7.5hr NHE Nurses Evening Shift NHN Nurses Night Shift NRO Nurses Shift Override RCN Retro Contract Pay Adjustment S3G Step 3 Out-of-Title Grievance SES Summer Session SSH Summer School Hours WPS WC 60% Sup WSP Award/Supp Program Supplement
Page 6 of 7 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: Earnings Begin Date: Earnings End Date: Earn Code: Amount: First earnings begin date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed Last earnings end date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed D5P Total the earnings for all of the earnings codes listed above earned during the deficit reduction period that are included in the pay period being processed and multiply by -.01847 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 +.01847. 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 ReportNPAY726 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. Earnings Not Subject to the Deficit Reduction 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. 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 Blind and Deaf Licensure Premium Dual Certification Premium Firearm Differential Fringe Benefits Hazardous Duty Pay Holiday Pay Longevity Payments Lost Time Lump Sum Payments for Accruals Mentoring Premium Deaf and Blind Overtime Pay
Page 7 of 7 Overtime Meals OGS Employee Recognition Award Over 40 Cash Out Recall Pay Safety Incentive Differential Pay Special Assignment to Duty Pay Standby Pay Statutory Workers Compensation Benefits Unpaid Leave Veterans Incentive Pay Summary of Agency Actions Agencies are responsible for the following actions: Create the D4P record for employees who do not meet the criteria in the Automatic Set Up section Create the D4P record for newly eligible employees after the initial pay period Create the D4P 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 D5P 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 D5P transaction when monies earned in an ineligible position are included in the D4P calculation Calculate and submit a negative D5P transaction when eligible monies are paid outside of the pay period being processed Calculate and submit a negative D5P transaction for eligible monies paid using those earnings codes in the Processing Deficit Reduction D5P section Calculate and submit a positive D5P transaction when a reduction of the eligible monies included in the original D5P 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. Earnings Code Description D4P 12-13 PEF DRP -1.847% R4P 12-13 PEF Retro DRP -1.847% D5P 12-13 PEF DRP Oth -1.847% Additional Information Questions Additional information and clarification may be provided in a subsequent payroll bulletin or posted on the PayServ Bulletin Board as it becomes available. Questions regarding the PEF Deficit Reduction Plan should be directed to the applicable budget examiner at the Division of the Budget. Questions regarding the accumulation and use of time as it relates to the PEF Deficit Reduction Plan should be directed to the Division of Staffing Services at the Department of Civil Service. Questions regarding the Payroll processing of the PEF Deficit Reduction Plan should be directed to the Payroll Earnings mailbox. Questions regarding the impact on taxes or deductions as it relates to the PEF Deficit Reduction Plan should be directed to the Payroll Deductions mailbox.