Purpose: 

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the October 2026 DC 37 RRSU LLS payment and provide instructions for payments not automatically processed.

Affected Employees: 

Employees in the DC 37 RRSU – BU67 with an Increment Code of 0510, 0610, 0710, 0810, 0910, 1010, 1110, 1210, 1310, 1410, 1510, 1610, 1710, 1810 or 1910 who meet the eligibility criteria are affected.

Background: 

Chapter 177 of the Laws of 2024, which implemented the 2023-2026 Agreement between the State of New York and DC 37, provides for payment of the 2026-2027 Longevity Payment effective October 2026 as a one-time, lump sum payment in the amount of $1,500, $3,000, or $4,500.

Effective Dates: 

The October 2026 LLS Payment will be processed in separate paychecks in the check dates listed below. For employees who do not have direct deposit, this payment will be processed in a separate paycheck. 

Note: The distribution of the LLS direct deposit will be the same as an employee’s regular paycheck.

Eligibility Criteria:  

Employees in graded positions (Grade 001-032) and NS positions (Grade 600), which are equated to a grade (Grade 001-032), are eligible for the October 2026 DC 37 RRSU LLS payment provided the employee:

• Is established on an LLS payment cycle as of 09/30/2026; and
• Is not eligible for the October 2026 Longevity Service Payment (LGS) OR is eligible for the October 2026 LGS payment but their current LLS payment amount that is greater than the LGS payment amount that they qualify for; and
• Is Active, on a Leave With Pay, or on an Unpaid Military Stipend Leave in a BU67 position on 09/30/2026; and
• Has a Comp Rate Code of ANN or BIW (only if the employee is on a Paid Military Stipend Leave) on 09/30/2026; and
• Did not receive an “Unsatisfactory” evaluation on their last rating date. 

Employees previously established on an LLS payment cycle may become eligible for the October 2026 DC 37 RRSU LLS payment upon processing of the April 2026 or October 2026 DC 37 RRSU Performance Advance which results in Job Rate provided the employee does not have the qualifying years of service needed to receive an LGS payment:

Upward Reallocation: An employee occupying a position on 09/30/2026 that was previously upward reallocated, whose salary at the time of the reallocation was equal to or greater than the Job Rate of the lower graded position, and whose salary upon application of the April 2026 or October 2026 DC 37 RRSU Performance Advance is equal to the Job Rate of the reallocated position is entitled to the Job Rate credit for service in the lower grade.

• The Increment Code of an employee who received the April 2026 DC 37 RRSU Performance Advance that resulted in a salary equal to the Job Rate of the reallocated position was automatically updated from 0001 to 2026.
• The Increment Code of an employee receiving the October 2026 DC 37 RRSU Performance Advance that results in a salary equal to the Job Rate of the reallocated position will be automatically updated from 1001 to 2610.
• The agency must evaluate the employee’s Payroll Status beginning from the time of reallocation through the date of the performance advance to determine if the Increment Code must be updated. 
  • If the Payroll Status remained Active, Leave With Pay, or Leave of Absence due to a Workers’ Compensation Leave or Military Leave during this period, the employee is entitled to have the Increment Code of the lower grade reinstated.
  • If the Payroll Status was Leave of Absence not related to a Workers’ Compensation Leave or Military Leave any time during this period, the Increment Code of the lower grade must be evaluated to determine the appropriate Increment Code adjustment.
  • If the Increment Code must be updated, the agency must submit a Data Chg on the Job Action Requests page using the same effective date as the performance advance, the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal), and an Increment Code reflecting the appropriate Job Rate credit.
• This payment will not be processed automatically. See Agency Actions – Payments Not Processed Automatically section.

Lateral Position Change from a Non-DC 37 RRSU Position Where the Employee’s Salary was Equal to or Greater Than Job Rate to a DC 37 RRSU Position with a Higher Job Rate:

An employee with a salary equal to or greater than the Job Rate of their salary grade, who had a lateral position change to a DC 37 RRSU position with a higher Job Rate, and whose salary upon application of the April 2026 or October 2026 DC 37 RRSU Performance Advance is equal to the Job Rate in the DC 37 RRSU position is entitled to Job Rate credit for service in the non-DC 37 RRSU position.

• The Increment Code of an employee who received the April 2026 DC 37 RRSU Performance Advance that resulted in a salary equal to the Job Rate was updated from 0001 to 2026.
• The Increment Code of an employee receiving the October 2026 DC 37 RRSU Performance Advance that results in a salary equal to the Job Rate will be automatically updated from 1001 to 2610.
• The agency must evaluate the employee’s Payroll Status beginning from the time of the lateral position change through the date of the performance advance to determine if the Increment Code must be updated. 
  • If the Payroll Status remained Active, Leave With Pay, or Leave of Absence due to a Workers’ Compensation Leave or Military Leave during this period, the employee is entitled to have the Increment Code of the lower grade reinstated.
  • If the Payroll Status was Leave of Absence not related to a Workers’ Compensation Leave or Military Leave any time during this period, the Increment Code of the lower grade must be evaluated to determine the appropriate Increment Code adjustment.
  • If the Increment Code must be updated, the agency must submit a Data Chg on the Job Action Requests page using the same effective date as the performance advance, the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal), and an Increment Code reflecting the appropriate Job Rate credit.
• This payment will not be processed automatically. See Agency Actions – Payments Not Processed Automatically section.

The following employees will become eligible for the October 2026 DC 37 RRSU LLS payment during 2026-2027:

Leave of Absence/Preferred List on 09/30/2026: An employee who otherwise qualifies for the October 2026 DC 37 RRSU LLS payment but is on an approved Leave of Absence (including Workers’ Compensation Leave or Unpaid Military Leave), on a preferred list on 09/30/2026 becomes eligible if they return to the payroll or are appointed to an eligible position between 10/01/2026 and 09/30/2027. There is no minimum service requirement following the employee’s return to active payroll status.

Demotions after 09/30/2026: An employee who is not eligible for the October 2026 DC 37 RRSU LLS payment on 09/30/2026 becomes eligible if the employee returns to a lower graded position between 10/01/2026 and 09/30/2027, provided the employee:

• Otherwise, would have been eligible if the employee had been in the lower graded position on 09/30/2026 and remains in the lower graded position for at least six (6) full 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 the probationary period.

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

For instructions on submitting transactions to make the October 2026 DC 37 RRSU LLS payment, see Agency Actions – Payments Not Processed Automatically.

Control-D Report Available Prior to Processing:

Prior to the automatic processing of the October 2026 DC 37 RRSU LLS payment, the following Control-D report will be available for agency use:

NPAY756 – Longevity Lump Sum (LLS) Eligibility Listing

This report is a preliminary listing of employees who appear eligible for the October 2026 LLS payment based on information available as of the date the report is produced. The report was made available on 09/22/2026.

Agencies should review the listing carefully, paying particular attention to the following:

• Employees appearing on the listing who have incorrect information appearing in  PayServ affecting their eligibility for the LLS payment must submit the appropriate transaction to correct the information by the agency cut-off date of the pay period the payment is processing in.
  • Employees who appear on the listing but are ineligible due to an “Unsatisfactory” evaluation on their last rating date. In order to prevent the payment, the agency must submit a Data Chg on the Job Action Requests page using the employee’s last rating date as the effective date, the Reason Code USP (Unsat Perf), and an increment code of 7777 in the Incr. Code field.
  • The ‘LAST LLS Date’ and ‘PMT AMT’ fields, if applicable. If the employee received an LLS payment after October 2025, ensure it represents an October 2025 payment and not an April 2026 payment as an employee cannot receive two longevity payments in a twelve-month period. If the payment represents an April 2026 LLS payment, the agency must review the employee’s Increment Code and if necessary, contact OSC using the Payroll Earnings mailbox to request assistance in determining the appropriate action.

Note: Employees who appear on the NPAY756 LLS Eligibility Listing may also appear on the NPAY759 LGS Eligibility listing. OSC will evaluate employees who meet the eligibility criteria for both LLS and LGS and process the payment accordingly. To determine which payment the employee is eligible for, agencies should refer to the Conversion from LLS payment to LGS payment section of Payroll Bulletin No. 2313.1 Longevity Service Payment for Employees in an Eligible Bargaining Unit. 

OSC Actions – Automatic Processing:  

OSC will process the October 2026 DC 37 RRSU LLS payment for those employees who meet the eligibility criteria by inserting a row on the employee’s Additional Pay page as shown below. The payment amount is $1,500 for employees with five (5) or more years of continuous service (identified by Increment Codes 1510, 1610, 1710, 1810, 1910), $3,000 for employees with ten (10) or more years of continuous service (identified by Increment Codes 1010, 1110, 1210, 1310, 1410), or $4,500 for employees with fifteen (15) or more years for continuous service (identified by Increment Codes 0510, 0610, 0710, 0810, 0910), or a prorated amount.

• Employees who are on a Voluntary Reduction in Work Schedule (VRWS) on 09/30/2026 receive the full LLS payment amount based on the employee’s Increment Code. Agencies must verify that the Full/Part field on the Job Data/Job Information page is ‘Voluntary’.
• Employees who are on a Leave With Pay with an Action/Reason code of Paid Leave of Absence/SKL (Sick Lv) on 09/30/2026 receive an amount based on the employee’s Increment Code and percentage. The full LLS payment amount based on the employee’s Increment Code is multiplied by the employee’s Empl Work Percent on the Job Data/Job Information page prior to the leave.
• All other employees (including employees on a Leave With Pay, Paid Military Stipend Leave, and Unpaid Military Stipend Leave) receive an amount based on the employee’s Increment Code and percentage in effect on 09/30/2026. The full LLS payment amount based on the employee’s Increment Code is multiplied by the employee’s Empl Work Percent on the Job Data/Job Information page in effect on 09/30/2026.

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

Agency Actions – Payments Not Processed Automatically:   

Agencies must submit transactions to make the October 2026 DC 37 RRSU LLS payment to the following employees:

• Increment Code 2222 on 09/30/2026: Agencies must submit transactions for eligible employees who are in a composite position on 09/30/2026. Transactions should be submitted beginning in Administration Pay Period 14L; the effective date of the LLS payment should be 10/01/2026. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the Increment Code of the employee’s qualifying position (noted in General Comments) and the percentage attributed to such position on 09/30/2026. Information regarding the composite position must be included on the General Comments page.
• Upward Reallocation: Agencies must submit transactions for eligible employees whose position on 09/30/2026 was previously upward reallocated and whose salary upon application of the April 2026 or October 2026 DC 37 RRSU Performance Advance is equal to the Job Rate of the reallocated position as explained above. Transactions should be submitted beginning in Pay Period Administration 15L (pay period following performance advance processing); the effective date of the LLS payment should be 10/01/2026. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s adjusted Increment Code indicating Job Rate credit.
• Lateral Position Change:  Agencies must submit transactions for eligible employees with a salary equal to or greater than the Job Rate in a non-DC 37 RRSU position, who had a lateral position change to a DC 37 position with a higher Job Rate, and whose salary upon application of the April 2026 or October 2026 DC 37 RRSU Performance Advance is equal to the Job Rate in the DC 37 RRSU position as explained above. Transactions should be submitted beginning in Pay Period Administration 15L (pay period following performance advance processing); the effective date of the LLS payment should be 10/01/2026. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the employee’s adjusted Increment Code indicating Job Rate credit.
• Leave of Absence on 09/30/2026: Agencies must submit transactions for employees who are otherwise eligible on 09/30/2026 to receive the payment but whose Payroll Status is Leave of Absence (except those on Unpaid Military Stipend Leave) and who return from such leave between 10/01/2026 and 09/30/2027 as explained above. Transactions should be submitted in the pay period the return from leave is processed; the effective date of the LLS payment should be the same as the return from leave effective date. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing.
• Preferred List on 09/30/2026: Agencies must submit transactions for employees who are otherwise eligible on 09/30/2026 to receive the payment but who are on a preferred list and who are appointed to an eligible position between 10/01/2026 and 09/30/2027 as explained above. Transactions should be submitted in the pay period the appointment is processed; the effective date of the LLS payment should be the same as the appointment effective date. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the percentage associated with the eligible position.
• Demotions after 09/30/2026: Agencies must submit transactions for employees who are ineligible for the payment on 09/30/2026 but become eligible on or before 09/30/2027 due to a demotion as explained above. Transactions should be submitted after the employee completes six (6) full pay periods in the lower grade; the effective date of the LLS payment should be the same as the effective date of the demotion. The LLS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on information on the date of the demotion. Information regarding the reason the demotion occurred must be included on the General Comments page.

Note: The employee’s Increment Code may need to be adjusted as a result of the actions listed above. If the Increment Code must be updated, the agency must submit a Data Chg on the Job Action Requests page using the same effective date as the applicable action above using the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal)

Submitting Payment

To make the October 2026 DC 37 RRSU LLS payment to eligible employees who were not processed automatically, agencies must submit the following information on the Additional Pay page using Earnings Code LLS:

Increment Code Correction

If the employee did not receive an automatic October 2026 DC 37 RRSU LLS payment due to an incorrect Increment Code, in addition to submitting the LLS payment, the agency must submit a Data Chg on the Job Action Requests page using the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal), and the appropriate Increment Code in the Incr. Code field.

In addition, if an employee received an “Unsatisfactory” evaluation on their last rating date and the Increment Code was changed to 7777, the prior Increment Code must be reinstated after processing of the October 2026 DC 37 RRSU LLS payment is complete. Beginning in Administration Pay Period 15L, the agency must submit a Data Chg on the Job Action Requests page effective 10/01/2026, using the Reason code CIC (Chg IncCd/or AnnDt/or FIS Sal), and the employee’s prior Increment Code in the Incr. Code field.

Control-D Report Available After Processing: 

After the automatic processing of the October 2026 DC 37 RRSU LLS payment is completed, the following Control-D report will be available for agency use:

NPAY770 – One Time Payment Report 

This report identifies all employees who received the October 2026 LLS payment effective 10/01/2026.

Overtime Calculation Information:

The LLS payment is included in the calculation of overtime compensation (refer to the Online Payroll Manual accessed from the PayServ Bulletin Board – Payroll Manuals > Earnings Manual > Time Entry Payments > Overtime Compensation).

The October 2026 DC 37 RRSU LLS payment will be included in the calculation of overtime earned from the OT Eff Date through the End Date on the employee’s Additional Pay page for Earnings Code LLS.

Overtime Processed for Administration Pay Period 14L:

 If the October 2026 CSEA LLS payment amount is discontinued as a result of the employee being eligible for a higher October 2026 LGS payment amount, in order for overtime to calculate correctly, agencies must submit overtime payments through the Time Entry page using the following dates: 

If an employee is appointed to an ineligible position (including a position which results in a salary below the Job Rate of the grade of the new position) effective after receiving the October 2026 DC 37 RRSU LLS payment, the payment cannot be included in the compensation calculation of any overtime earned on or after the date of appointment. Therefore, agencies must insert a row on the Additional Pay page at the Effective Date level of Earnings Code LLS and enter the following information:

Tax Information:    

The LLS payment is supplemental taxable income, will be added to the employee’s taxable gross wages for tax withholding purposes, and is subject to employment and income taxes.

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.  Yonkers Flat Rate Withholding is 1.95975% for Yonkers residents and 0.50% for Yonkers non-residents.

Payroll Register and Employee’s Paycheck/Advice: 

The Earnings Code LLS and the amount paid will be displayed on the Payroll Register. The Earnings Description Longevity LSP and the amount paid will appear on the employee’s paycheck stub and direct deposit advice (if applicable). 

This payment will be made in a separate check or Direct Deposit regardless of when it is paid. The payment will be issued with the employee’s regular paycheck or with their direct deposit advice based on information for that check date. Agencies should verify the employee’s mailing address is up to date. 

Note: If the employee has direct deposit, the direct deposit distribution will be the same as the employee’s regular paycheck. For example, if an employee has $200 deposited into a loan account and the remainder going into a balance account, the same distribution will be applied.

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. These forms can be found here: Payroll Forms | Office of the New York State Comptroller.

Questions:

Questions regarding eligibility and payment information may be directed to the Payroll Earnings mailbox ATTN: Salary. 

Questions regarding deductions may be directed to the Payroll Deduction mailbox. 

Questions regarding retirement may be directed to the Payroll Retirement mailbox. 

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