This Bulletin Supersedes Payroll Bulletin 2329 

Purpose:

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the April 2025 LGS payment and provide instructions for payments not processed automatically.

Affected Employees:

Employees in the following payment eligible bargaining units who meet the eligibility criteria are affected:

Background:

The following Chapter Laws provide for a change in eligibility criteria for Performance Awards/Longevity Payments (Longevity Service Payment) for all eligible members of the Public Employees Federation (PEF), Civil Service Employees Association (CSEA), District Council 37 (DC 37) and State University Construction Fund (CSEA).

• Chapter 190 of the Laws of 2023, which implemented the 2023-2026 Agreement between the State of New York and the Public Employees Federation (PEF)
• Chapter 361 of the Laws of 2022, which implemented the 2021 – 2026 Agreement between the State of New York and the Civil Service Employees Association (CSEA)
• Chapter 177 of the Laws of 2024, which implemented the 2023-2026 Agreement between the State of New York and the District Council 37 (DC 37)
• The State University Construction Fund’s Board Resolution AD-8 which authorized the amended Memorandum of Understanding between the State University Construction Fund and CSEA

Effective Dates:

The April 2025 LGS Payment will be processed in separate paychecks on the check dates listed below. OSC will process this payment via direct deposit. For employees who do not have direct deposit, this payment will be processed in a separate check. 

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

Eligibility Criteria:

Eligible employees (see Affected Employees section) in graded positions (Grade 001-038), NS positions (Grade 600), which are equated to a grade (Grade 001-038), NS positions (Grade 600) which are not equated to a grade and NS positions (Grade 800) are eligible for the April 2025 LGS payment provided the employee:

• Is Active, on a Leave With Pay or on an Unpaid Military Stipend Leave on 03/31/2025; and
• Has a Comp Rate Code of ANN, CAL, 21P or BIW (only if the employee is on a Paid Military Stipend Leave) on 03/31/2025; and
• Did not receive an “Unsatisfactory” evaluation on their last rating date; and
• Has a Processing Cycle of A or AP; and
• Has twelve (12) or more years, seventeen (17) or more years, or twenty-two (22) or more years of qualifying service* in an Executive branch bargaining unit of New York State government as of 03/31/2025 as described in the chart below:

Note: CSEA or RRSU employees who meet the LGS eligibility criteria and were previously established on the April LLS payment cycle, have a Processing Cycle -of AP. Employees whose processing cycle reflects AP on the LGS payment eligibility date, will continue to receive an LGS payment on the April cycle regardless of their Qualifying Service Date Range in order to prevent an employee from receiving more than one longevity payment in the course of a year.

 *Qualifying service, as used in determining eligibility for the LGS payment, is paid service in an Executive branch bargaining unit of New York State government as described in the Qualifying Service section of payroll bulletin no. 2313 Longevity Service Payment for Employees in an Eligible Bargaining Unit (including part-time annual salaried service, Paid Military Leave, Sick Leave at Half Pay and COVID Leave) or time on Workers’ Compensation Leave or Unpaid Military Leave.

The following employees will become eligible for the April 2025 LGS payment during 2025-2026:

Leave of Absence/Preferred List on 03/31/2025: An employee who otherwise qualifies for the April 2025 LGS payment but is on an approved Leave of Absence (including Workers’ Compensation Leave or Unpaid Military Leave), on a preferred list on 03/31/2025 becomes eligible if they return to the payroll or are appointed to an eligible position between 04/01/2025 and 03/31/2026. There is no minimum service requirement following the employee’s return to active payroll status.

For instructions on submitting transactions to make the April 2025 LGS payment, see Agency Actions – Payments Not Processed Automatically section.

Note: The following employees may become eligible for the April 2025 Longevity Lump Sum payment (Earnings Code LLS) during 2025-2026:

Demotions after 03/31/2025: An employee who does not meet the qualifying service criteria and is not eligible for the April 2025 LGS payment on 03/31/2025 may become eligible for an April 2025 LLS payment if the employee, who previously received an LLS payment, returns to a lower graded position between 04/01/2025 and 03/31/2026 provided they meet the eligibility criteria as outlined in the Eligibility Criteria section and Agency Actions – Payments Not Processed Automatically section of the appropriate bargaining unit’s April 2025 LLS payroll bulletin.

Control-D Report Available Prior to Processing:

Prior to the automatic processing of the April 2025 LGS payment, the following Control-D report will be available for agency use:

NPAY756 – Longevity Service Payment (LGS) Eligibility Listing

This report is a preliminary listing of employees who appear eligible for the April 2025 LGS payment based on information available as of the date the report is produced. The report will be made available on a later date.

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

• Employees who appear on the listing but are ineligible due to an “Unsatisfactory” evaluation on their last rating date.
• The ‘LAST LLS Date’ and ‘PMT AMT’ fields, if applicable. This is to identify if a CSEA or DC-37 employee received an LLS payment after April 2024, ensure it represents an April 2024 payment and not a prior October payment. If the payment represents an October 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: This report is needed to ensure that employees do not receive both an LLS and an LGS payment in a twelve month period.

The following corrections to the preliminary listing should be submitted on the Correction Sheet. The form may be duplicated if additional copies are needed.

• Add employees who do not appear on the listing, such as:
  • Eligible employees who are in a composite position (identified by Increment Code 2222) even though the agency must submit a transaction to make the payment.
• Delete employees who should not appear on the listing, such as:
  • Employees with an “Unsatisfactory” evaluation on their last rating date. In addition, 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 the appropriate increment codes as described in the LGS Increment Codes for Payment Withhold attachment in the Incr. Code field.
• Identify employees appearing on the listing who have incorrect information appearing in PayServ affecting their eligibility for the LGS payment. In addition, the agency must submit the appropriate transaction to correct the information to the Payroll Earnings mailbox.

Do not add or delete employees whose eligibility will change due to transactions that will be processed prior to or in Institution Pay Period 26L or Administration Pay Period 1L.

Correction Sheets should be submitted as soon as possible but must be received no later than 04/03/2025. Please email completed Correction Sheets to the Payroll Earnings mailbox; please include the Department ID and ‘LGS Correction Sheet’ in the Subject line.

Note: OSC will evaluate employees who appear on the LLS and the LGS eligibility listing and report as meeting the eligibility criteria for both payments effective 04/01/2025 to determine the appropriate action.

OSC Actions- Automatic Processing:

OSC will process the April 2025 LGS 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 twelve (12) or more years of qualifying service (identified by a Qualifying Service Date that is on or before 03/31/2013 ), $3,000 for employees with seventeen (17) or more years of qualifying service (identified by a Qualifying Service Date of on or before 03/31/2008), or $4,500 for employees with twenty-two (22) or more years of qualifying service (identified by a Qualifying Service Date on or before 03/31/2003), or a prorated amount.

• Employees who are on a Voluntary Reduction in Work Schedule (VRWS) on 03/31/2025 receive the full LGS payment amount based on the employee’s qualifying service date. 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 03/31/2025 receive an amount based on the employee’s qualifying service date and percentage. The full LGS payment amount based on the employee’s qualifying service date 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 qualifying service date and percentage in effect on 03/31/2025. The full LGS 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 03/31/2025.

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 April 2025 LGS payment to the following employees:

• Increment Code 2222 on 03/31/2025: Agencies must submit transactions for eligible employees who are in a composite position on 03/31/2025. Transactions should be submitted beginning in Institution Pay Period 26L or Administration Pay Period 1L; the effective date of the LGS payment should be 04/01/2025. The LGS 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 03/31/2025. Information regarding the composite position must be included on the General Comments page.
• Leave of Absence on 03/31/2025: Agencies must submit transactions for employees who are otherwise eligible on 03/31/2025 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 04/01/2025 and 03/31/2026 as explained above. Transactions should be submitted in the pay period the return from leave is processed; the effective date of the LGS payment should be the same as the return from leave effective date. The LGS payment amount should be calculated as explained in OSC Actions – Automatic Processing section. Note: The employee’s qualifying service date may be adjusted as a result of the leave of absence in effect on 03/31/2025 and could impact the employee’s April 2025 LGS eligibility.
• Preferred List on 03/31/2025: Agencies must submit transactions for employees who are otherwise eligible on 03/31/2025 to receive the payment but who are on a preferred list and who are appointed to an eligible position between 04/01/2025 and 03/31/2026 as explained above. Transactions should be submitted in the pay period the appointment is processed; the effective date of the LGS payment should be the same as the appointment effective date. The LGS payment amount should be calculated as explained in OSC Actions – Automatic Processing and based on the percentage associated with the eligible position. Note: The employee’s qualifying service date may be adjusted as a result of time off the payroll and could impact the employee’s April 2025 LGS eligibility.

Submitting Payment

To make the April 2025 LGS payment to eligible employees who were not processed automatically, agencies must submit the following information on the Additional Pay page using Earnings Code LGS:

Qualifying Service Date Correction

If the employee did not receive an automatic April 2025 LGS payment due to an incorrect qualifying service date, in addition to submitting the LGS payment, the agency must submit an email request, that includes the necessary changes, to the Payroll Earnings mailbox ATTN: Salary. Any changes to the qualifying service date must be completed by OSC as agencies do not have the ability to update the LGS fields in the Job Labor tab of the Job Data page.

In addition, if an employee received an “Unsatisfactory” evaluation on their last rating date and the increment code was changed to withhold payment, the prior increment code must be reinstated after processing of the April 2025 LGS payment is complete. Beginning in Institution Pay Period 1L or Administration Pay Period 2L, the agency must submit a Data Chg on the Job Action Requests page effective 04/01/2025 using the Reason code CIC (Chg IncCd/orAnnDt/or FIS Sal), and the employee’s prior increment code in the Incr. Code field.

Control-D Reports Available After Processing:

After the automatic processing of the April 2025 LGS 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 April 2025 LGS payment effective 04/01/2025.

Overtime Calculation Information

The LGS 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 April 2025 LGS 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 LGS.

Overtime Paid in Pay Period 26L Institution or Pay Period 1L Administration:

In order for Overtime to calculate correctly, agencies must submit overtime payments through the Time Entry page using the following dates:

*May or may not include LLS depending on prior payment received.

If an employee is appointed to an ineligible position after receiving the April 2025 LGS payment, the payment cannot be included in the compensation calculation of any overtime earned after the date of appointment. Therefore, agencies must insert a row on the Additional Pay page at the Effective Date level of Earnings Code LGS and enter the following information:

Retirement and Deduction Information

The LGS payment is included as salary for retirement purposes but is not subject to union dues. Deductions will be taken from the LGS payment for normal retirement contributions, garnishments and federal levies.

Tax Information:

The LGS 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 LGS and the amount paid will be displayed on the Payroll Register. The Earnings Description Longevity Service Payment 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 separate check will be issued with the employee’s regular paycheck or with the 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.

Questions:

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

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.