Purpose:

The purpose of this bulletin is to provide agencies with information regarding the change from a Longevity Lump Sum Payment (Earnings Code LLS) based on years at job rate to a Longevity Service Payment (Earnings Code LGS) based on years of qualifying service for employees in an eligible bargaining unit and to inform agencies of OSC’s automatic processing of the April 2025 M/C LGS Payment and provide instructions for payments not automatically processed.

Affected Employees:

Employees designated management or confidential in the following bargaining units who meet the eligibility criteria are affected:

Background:

Civil Service Law, Section 130 and the Division of the Budget Bulletin D-1154 provide for a change in criteria needed to pay Longevity Award Payments to employees in M/C positions effective April 2025.

Effective Dates:

The April 2025 M/C LGS Payment will be processed in a separate check using the effective date and 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:

Employees in graded positions (Grade 603-617), NS positions (Grade 600), which are equated to a grade (Grade 603-617),and NS Positions (Grade 800) are eligible for the April 2025 M/C LGS Payment provided the employee:

• Is Active, on a Leave With Pay or on an Unpaid Military Stipend Leave in a BU06, BU46, BU66, BU78 or BU79 position on 03/31/2025; and
• Has a Comp Rate Code of ANN or BIW (only if the employee is on a Paid Military Stipend Leave) on 03/31/2025; 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; and
• Did not have a withholding recommendation approved by the Division of the Budget (DOB).

* 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 Eligibility section of Payroll Bulletin No. 2313.1 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.

Withholding Recommendation

If the agency determines the full or partial value of the April 2025 M/C LGS Payment should be withheld from an employee, the agency must request approval from DOB as explained in Budget Bulletin D-1154.

If the full value is withheld, the agency must submit a Data Chg on the Job Action Requests page using an effective date of 03/31/2025, the Reason code PWH (Perf Withheld) and an increment code of 8888 in the Incr. Code field. (The prior increment code will be restored after the April 2025 M/C LGS processing is complete.) These transactions should be submitted as soon as possible following approval but prior to or as part of processing for Administration or Institution Pay Period 16L. If the agency does not submit the transaction to withhold the full value of the April 2025 M/C LGS Payment or if the agency chooses to withhold a partial payment, the transaction will be entered or updated by OSC based on information received from DOB.

The following employees will become eligible for the April 2025 M/C LGS Payment during 2025-2026:

Leave of Absence/Preferred List on 03/31/2025: An employee who otherwise qualifies for the April 2025 M/C LGS Payment but is on an approved Leave of Absence (including Workers’ Compensation Leave or Unpaid Military Leave) or 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.

Demotions after 03/31/2025:

An employee who does not meet the eligibility criteria on 03/31/2025 may become eligible for an April 2025 LGS payment provided the employee:

• Otherwise would have been eligible if the employee had been in the lower graded position on 03/31/2025 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

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

An employee 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.

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 LGS payment in the lower grade.

For instructions on submitting transactions to make the April 2025 M/C LGS Payment, see Agency Actions – Payments Not Processed Automatically.

Control-D Report Available Prior to Processing:

The following Control-D report will be made available for agency review prior to the automatic processing.

NHRP738 – Excel to Control-D Report

Upon opening the NHRP738 report, the description April 2025 M/C LGS Eligibility Listing appears in the page header. This report identifies employees who based on their Qualifying Service Date as of 03/31/2025, appear eligible for an April 2025 LGS payment and will be included in automatic processing if no corrective action is submitted by the agency as follows.

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). These employees will not be processed automatically; the agency must submit a transaction to make the payment.
• Delete employees who should not appear on the listing, such as:
  • Employees who had a withholding recommendation submitted to DOB for the full value of the LGS payment; requires DOB approval in order for OSC to take action. In addition, once the withhold is approved, the agency must submit a Data Chg on the Job Action Requests page using an effective date of 03/31/2025, the Reason code PWH (Perf Withheld) and an increment code of 8888 in the Incr. Code field.
• Identify employees appearing on the listing who had a withholding recommendation submitted to DOB for a partial value of the LGS payment; requires DOB approval in order for OSC to update the value.
• 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.

Correction Sheets should be submitted as soon as possible but must be received no later than 11/03/2025. Please email completed Correction Sheets to the Payroll Earnings mailbox; please include the Department ID and ‘M/C LGS Correction Sheet’ in the Subject line.

OSC Actions – Automatic Processing:

OSC will process the April 2025 M/C 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 04/01/2013 ), $3,000 for employees with seventeen (17) or more years of qualifying service (identified by a Qualifying Service Date of on or before 04/01/2008), or $4,500 for employees with twenty-two (22) or more years of qualifying service (identified by a Qualifying Service Date on or before 04/01/2003), 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 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 03/31/2025 receive an amount based on the employee’s increment code and percentage. 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 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 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 M/C LGS payment to eligible employees meeting the following criteria:

• 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 Administration or Institution Pay Period 17L; 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 or in Administration or Institution Pay Period 17L if the employee has already returned; 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.
  Note:  The employee’s qualifying service date may need to be adjusted as a result of the leave of absence in effect on 03/31/2025 and could impact the employee’s April 2025 M/C 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 or Administration or Institution Pay Period 17L if the employee has already returned; 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 need to be adjusted as a result of time off the payroll and could impact the employee’s April 2025 M/C LGS eligibility.
• Demotions after 03/31/2025:  Agencies must submit transactions for employees who are ineligible for the payment on 03/31/2025 but become eligible on or before 03/31/2026 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 LGS payment should be the same as the effective date of the demotion. The LGS 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.

Submitting Payment

To make the April 2025 M/C 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 DOB approves a withholding recommendation for an employee and the increment code was changed to 8888, the prior increment code must be reinstated after processing of the April 2025 M/C LGS Payment is complete. Beginning in Administration or Institution Pay Period 17L, the agency must submit a Data Chg on the Job Action Requests page effective 04/01/2025, 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 April 2025 M/C 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 M/C 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 M/C 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.

If an employee is appointed to an ineligible position effective after receiving the April 2025 M/C LGS 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 LGS and enter the following information:

Retroactive Adjustment

OSC will automatically calculate retroactive adjustments for overtime earned on or after the OT Eff Date associated with the April 2025 M/C LGS Payment and paid prior to the automatic processing of the April 2025 M/C LGS Payment.

Agency Actions – Retroactive Processing:

Reporting Retroactive Adjustments

Time Entry earnings codes that are submitted with an amount will not be adjusted automatically. Therefore, beginning in Administration or Institution Pay Period 17L, agencies must report the adjustment amount for earnings codes such as Out of Title Overtime (Earnings Code OTT).

Correcting an Automatic Retroactive Adjustment

When certain conditions exist in an employee’s record, the automatic retroactive adjustment may be incorrect. Therefore, the agency is responsible for identifying employees who meet the following conditions and, if necessary, submitting the adjustment.

• If an employee had a check returned or exchanged on an AC-230 for dates on or after the effective date of the payment, the payroll system does not consider the AC-230 when calculating the automatic retroactive adjustment.
• Adjustments for earnings that are calculated automatically, such as OT for Annuals (Earnings Code OTA), will be calculated incorrectly if the dates previously reported as a single entry on the Time Entry page overlap the effective date of the payment. The system will calculate an adjustment for all earnings reported in a single entry based on the salary in effect on the Earnings End Date.
• For employees who had a change reported on the Job Data page, since the effective date of the payment and the action resulted in an overpayment of earnings, the automatic negative retroactive adjustment may not have been processed because the overpayment was either not recoverable or was recovered using an overpayment earnings code or an AC-230. In this case, the negative retroactive adjustment may be re-generated when the payment is processed. OSC will turn off (not process) the automatic negative adjustment for these employees since in most cases these overpayments were either not recoverable or recovered using another method.

If an overpayment of earnings is identified after the automatic payment is processed but before the paycheck is received by the employee, the employee must be notified of the overpayment and the adjustment that will be reported in a subsequent pay period.

Submitting an Adjustment

When an adjustment is needed for overtime or recall such as Out of Title Overtime (Earnings Code OTT), Earnings Code ARO (Adj Retro Raise for OT and RCL) must be used to process the adjustment. Please refer to Payroll Bulletin No. 1893 Reporting Adjustments to Overtime for more information. Agencies must continue to use Earnings Code AJR (Adjust Raise) for all other override Time Entry Earnings Codes requiring a manual adjustment as a result of a retroactive LGS payment.

To process a retroactive adjustment or correct an automatic retroactive adjustment, agencies must submit the following information on the Time Entry page or the Time Entry Interface (NPAY502) using the Earnings Code AJR or ARO:

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.

All deductions for employees whose Payroll Status is Terminated, Retired, or Deceased will be automatically canceled by OSC with the exception of percentage-based dues and deductions marked “No” on the Deduction Codes list published on the OSC website.

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.

The adjustments (Earnings Codes AJR and ARO) and 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.  Yonkers Flat Rate Withholding is 1.95975% for Yonkers residents and 0.50% for Yonkers non-residents.

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

Per Internal Revenue Service Publication 957, OSC will be reporting retro 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.

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 payment 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.