Purpose
To inform agencies of new earnings codes and procedures for processing the 2012-2013 M/C Deficit Reduction Plan.
Affected Employees
Employees in the following bargaining units:
Management Confidential | BU06 |
Management Confidential SUNY | BU13 |
Management Confidential State Police | BU18 |
Management Confidential Environmental Facilities Corporation | BU34 |
Management Confidential Military and Naval Affairs Unit | BU46 |
Public Employment Relations Board | BU66 |
Legislative Commissions | BU79 |
Management Confidential SUNY Construction Fund | BU96 |
Temporary State Commissions | BU98 |
Excludes employees with an hourly rate less than $7.40.
Background
Pursuant to Section 7 of Part A of Chapter 491 of the Laws of 2011 and the Division of the Budget Bulletin B-1197 issued November 15, 2011, a plan has been established to reduce the compensation of Management Confidential employees.
Effective Date(s)
The 2012-2013 M/C 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 M/C 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 M/C Deficit Reduction Plan.
Additional Pay Earnings Code | Description |
D4M | 12-13 MC DRP -2.008% (Retro Code – R4M) |
Time Entry Earnings Code | Description |
D5M | 12-13 MC DRP Oth -2.008% |
Automatic Set up of the D4M Additional Pay Record - OSC
In Institution Pay Period 25L/26C and Administration Pay Period 26L/01C, 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:
Earnings Code: | D4M |
Effective Date: | 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. |
Earnings: | The field will be left blank; the system will calculate the D4M amount based on the eligible earnings |
End Date: | Pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C |
Manual Set up of the D4M 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: | D4M |
Effective Date: | >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 |
Earnings: | The field must be left blank; the system will calculate the D4M amount based on the eligible earnings. |
End Date: | 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/25C or Administration Pay Period 25L/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 M/C Deficit Reduction Plan period.
The Additional Pay record should be set up as follows:
Earnings Code: | D4M |
Effective Date: | 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 Leave with Pay within the M/C Deficit Reduction Plan period. |
Earnings: | The field must be left blank; the system will calculate the D4M amount based on the eligible earnings. |
End Date: | Pay period end date for Institution Pay Period 24L/25C or Administration Pay Period 25L/26C |
Note: An Additional Pay record using Earnings Code D4M 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 – D4M (Additional Pay)
Each pay period, the system will calculate the deficit reduction amount for employees with a D4M 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 -.02008.
Earnings Code | Description |
ACN | Adjustmt for Contract Earning |
ALR | Also Receives |
BAL | Balance of Contract |
CON | Contract Pay Regular Earnings |
FEE | Fee |
FRC | Fee – Retirement Credit |
GEO | Geographic Pay |
IPF | Inconvenience Pay – Full |
IPP | Inconvenience Pay – Part |
LEP | Non-Taxable Lieu of Expense |
LEX | Lieu of Expense |
LMH | Location Mid-Hudson |
LOC | Location Pay |
LOM | Location Pay – Other Amount |
MSP | Military Stipend Payment |
OPD | Occupational Pay Differential |
RGH | Regular Pay Hourly Employee |
RGO | Regular Pay Override |
RGS | Regular Pay Salary Employee |
SCO | Salary Withholding Override |
SES | Summer Session |
SSH | Summer School Hours |
SWB | Salary Withholding Biwkly/Hrly |
SWC | Salary Withholding Contract Pa |
SWO | Salary Withholding Override |
SWP | Salary Withholding Program |
TSP | Military Training Stipend |
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 M/C Deficit Reduction Plan
If an employee transfers into a bargaining unit that is not subject to the M/C Deficit Reduction Plan, the agency must insert a row on the Additional Pay page for Earnings Code D4M and insert an End Date equal to the last date the employee is in an eligible bargaining unit.
Processing Adjustments – D5M (Time Entry)
If an employee is in both an eligible and ineligible bargaining unit during a pay period and has a D4M 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 D5M.
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 D5M.
As mentioned above, an Additional Pay record using Earnings Code D4M 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 D5M.
A Time Entry transaction should be submitted as follows:
Earnings Begin Date: | First earnings begin date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed |
Earnings End Date: | Last earnings end date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed |
Earn Code: | D5M |
Amount: | Total adjustment amount – can be negative or positive |
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 – D5M (Time Entry)
Monies earned during the M/C Deficit Reduction Plan 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.
Earnings Code | Description |
AAR | Adj Also Receives |
ADP | Adjust Lieu of Expense |
AGP | Adj Geographic Pay |
AIF | Adj Inconvenience Pay Full |
AIP | Adj Inconvenience Pay Part |
ALE | Adj Lieu of Expense |
ALP | Adj Location Pay |
AMS | Adjust Military Stipend |
AOP | Adj Occupational Pay Diff |
AS5 | Addtl Sft Comp – Hourly |
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 |
EXT | Extra Time |
IIM | Intermittent Inc Pay MC |
IIP | Intermittent Inconvenience Pay |
IP1 | Intermittent Inc Pay-4Day |
IP2 | Intermittent Inc Pay-3Day |
IP5 | Intermittent Inc Pay MC-3Day |
IP6 | Intermittent Inc Pay MC-4Day |
IPS | Inc Pay Seasonal HRY |
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 |
S3G | Step 3 Out-of-Title Grievance |
WPS | WC 60% Sup |
WSP | Award/Supp Program Supplement |
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: | First earnings begin date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed |
Earnings End Date: | Last earnings end date within the deficit reduction period for the earnings codes included in this calculation for the pay period being processed |
Earn Code: | D5M |
Amount: | 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 -.02008. |
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 +.02008.
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
- Brummer Award
- Fringe Benefits
- Hazardous Duty Pay
- Holiday Pay
- Longevity Payments
- Lost Time
- Lump Sum Payments for Accruals
- Merit Award
- Overtime Pay
- Overtime Meals
- Over 40 Cash Out
- Recall Pay
- Safety Incentive Differential Pay
- Salary Withholding Payout
- Standby Pay
- Statutory Workers’ Compensation Benefits
- Uniform Allowance
- Unpaid Leave
Summary of Agency Actions
Agencies are responsible for the following actions:
- Create the D4M record for employees who do not meet the criteria in the Automatic Set Up section
- Create the D4M record for newly eligible employees after the initial pay period
- Create the D4M 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 D5M 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 D5M transaction when monies earned in an ineligible position are included in the D4M calculation
- Calculate and submit a negative D5M transaction when eligible monies are paid outside of the pay period being processed
- Calculate and submit a negative D5M transaction for eligible monies paid using those earnings codes in the Processing Deficit Reduction – D5M section
- Calculate and submit a positive D5M transaction when a reduction of the eligible monies included in the original D5M 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 |
D4M | 12-13 MC DRP -2.008% |
R4M | 12-13 MC Retro DRP -2.008% |
D5M | 12-13 MC DRP Oth -2.008% |
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 M/C 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 M/C 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 M/C Deficit Reduction Plan should be directed to the Payroll Earnings mailbox.
Questions regarding the impact on taxes or deductions as it relates to the M/C Deficit Reduction Plan should be directed to the Payroll Deductions mailbox.