Purpose: 

The purpose of this bulletin is to provide processing instructions to agencies for entering the new Correctional Institution Differential payments for eligible employees at DOCCS.

Affected Employees: 

Employees in a position allocated to Grade 5 through Grade 23 at DOCCS (Agency 10xxx) in the Civil Service Employees Association (CSEA - BU02, BU03 and BU04), Public Employees Federation (PEF - BU05) as well as employees in a position designated as Management/Confidential (M/C - BU06) are affected.

Background: 

Pursuant to all Memorandums of Agreements dated 07/09/2025 between DOCCS and the applicable negotiating units above, as well as approval from the Office of Employee Relations for unrepresented M/C employees, a $1.00 per hour salary differential has been approved for Civilian DOCCS employees in a position allocated to Grade 5 through Grade 23 in one of the above bargaining units whose official station is a DOCCS correctional facility. The salary differential is to be paid for the first forty (40) hours of an employee’s regular work schedule per workweek for actual hours worked or while on leave at full pay with charge to accruals.

The Correctional Institution Differential is not pensionable but must be included in the calculation of overtime. This payment will sunset on 04/01/2026.

Effective Dates: 

The Correctional Institution Differential is effective 07/10/2025 (Institution Cycle) and 07/17/2025 (Administration Cycle). Payments may be made beginning with the Administration Pay Period 14 Lag checks dated 10/22/2025 and Institution Pay Period 14 Lag checks dated 10/30/2025.

Eligibility Criteria: 

To be eligible for the Correctional Institution Differential, employees must:

• Be employed at DOCCS (10xxx) with an official work station in a DOCCS correctional facility
• Be in one of the following bargaining units:
  • CSEA (02, 03, 04)
  • PEF (05)
  • M/C (06)
• Have a Comp Rate Code of 21P, ANN, or CAL in a Grade 5 through Grade 23 position.
• Have a Comp Rate Code of HRY in a title that is equated to a Grade 5 through Grade 23 position.
• Have an Employee Status of Active or Paid Leave at 100%
  • Employees with an Employee Status of Active are entitled to payment for all hours not worked but charged to accruals. (Note: Employees with a Comp Rate Code of 21P or CAL during a semester break who are not working and not charging accruals are not entitled to the Correctional Institution Differential for all applicable hours).

OSC Actions:

OSC has created the following Additional Pay Earnings Codes to process the Correctional Institution Differential for employees with a Comp Rate Code of ANN:

In addition, OSC has also created the following Time Entry Earnings Codes to process the Correctional Institution Differential for employees with a Comp Rate Code of ANN (non-compensation hours only), 21P, CAL, and HRY:

Automatic Retroactive Processing

OSC will automatically calculate retroactive adjustments for Time Entry earnings that are calculated by the system that must include the Correctional Institution Differential (Earnings Code CID) in the payment calculation such as OT for Annual 2080 (Earnings Code OCS). 

If an employee is eligible for a retroactive payment and has been paid by multiple agencies in the same Employee Record Number since the effective date of the payment, all retroactive adjustments will be paid in the most current agency within that record number. If an employee has been paid in multiple record numbers, each record number will be evaluated separately, and retroactive payments will be processed in the record number in which the payment occurred.

Agency Actions:

Agencies must utilize the appropriate Earnings Code(s) based on an employee’s Comp Rate Code and/or work schedule.

Employees with a Comp Rate Code of ANN: 

To pay the Correctional Institution Differential to eligible employees with a Comp Rate Code of ANN, the following information must be submitted on the Additional Pay page:

*The annual amount of $2085.72 equates to a payment of $80.00 per Pay Period and the annual amount of $1955.37 equates to a payment of $75.00 per Pay Period ($1 per hour) for employees with a Work Percentage of 100%. In both cases, part-time employees will be automatically pro-rated accordingly.

Note: Employees who work a 7.5 hour/day schedule and receive the annualized CID amount of $1955.37 may be entitled to the Correctional Institution Differential for any mandatory non-compensation time that is worked between 37.5 and 40 hours in a week. Payment of the differential for these additional hours worked are at the discretion of the DOCCS facility. Refer to Employees with a Comp Rate Code of ANN (non-compensation hours only), 21P, CAL or HRY sub-section below.

In addition, the Correctional Institution Differential must be ended when any of the following occurs:

• Employee moves to a position that is not in CSEA (02, 03, 04), PEF (05), or M/C (06)
• Employee’s official work station is no longer in a DOCCS correctional facility
• Employee is appointed to a position allocated to Grade 24 or higher.
• Employee is placed on Paid Leave of Absence at a reduced percentage.

To end payment of the Correctional Institution Differential for employees, the following information must be submitted on the Additional Pay Page:

Employees with a Comp Rate Code of ANN (non-compensation hours only), 21P, CAL or HRY: 

To pay the Correctional Institution Differential to eligible employees with a Comp Rate Code of 21P, CAL or HRY, or to pay it to employees with a Comp Rate Code of ANN who are eligible for work during non-compensation hours, the following information must be submitted each pay period on the Time Entry page or NPAY502 interface:

Overtime Calculation:

The Correctional Institution Differential must be included in the calculation of an employee’s overtime rate.

Employees with a Comp Rate Code of ANN

The Correctional Institution Differential will be automatically included in the calculation of overtime earned from the Effective Date on the employee’s Additional Pay page for Earnings Code CID and forward (until no longer eligible).

Employees with a Comp Rate Code of 21P, CAL or HRY

The Correctional Institution Differential for 21P, CAL, hourly and exception hourly employees will not be included automatically in the calculation of overtime. Therefore, an overtime adjustment is required for all overtime hours worked during the same pay period dates that the Correctional Institution Differential is paid.

To pay the overtime adjustment to eligible hourly and exception hourly employees, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502):

Retirement and Deduction Information: 

Money paid using the above Earnings Codes is not included as salary for retirement purposes but is subject to union dues and deferred compensation. Deductions will be taken from the payment for garnishments and federal levies.

Tax Information: 

The Correctional Institution Differential payment (Earnings Codes CID, AID, CDH and OCD) is taxable income, will be added to the employee’s taxable gross wages, and is subject to employment and income taxes.

The retroactive payments (Earnings Codes RXX) are supplemental taxable income and will be included in the employee’s taxable gross subject to all 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 (1.95975% for Yonkers residents and 0.50% for Yonkers non-residents).

Payroll Register and Employee’s Paycheck/Advice: 

The Earnings Codes above and the amount paid will be displayed on the Payroll Register. The corresponding Earnings Description in the OSC Actions section and the amount paid will be displayed on the employee’s paycheck stub or direct deposit advice. 

Special Wage Payments for Individuals Who Filed for Retirement Social Security Benefits:

Per Internal Revenue Service Publication 957, OSC will be reporting retroactive payments made to individuals who have filed for Social Security benefits to the Social Security Administration (SSA).

As PayServ does not include this information, OSC will be mailing a Request for Special Wage Payment Report to inactive individuals who are 62 or older in the calendar year and to active employees with the New York Retiree Indicator checked in Modify a Person who receive the retroactive payment. Recipients of this mailing will be asked to fill out the request and return it to OSC for inclusion on the Special Wage Payment Report to SSA. This report will be submitted to SSA after the close of the 2025 tax year.

It is important that agencies ensure the New York Retiree Indicator box is checked for rehired retirees. Please see Payroll Bulletin No. 1728 – New York Retiree Indicator for further details on the New York Retiree Indicator box.

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 this bulletin may be directed to the Payroll Earnings mailbox.