Purpose:

The purpose of this bulletin is to provide processing instructions to agencies for entering the new Retention Bonus payment for eligible employees at DOCCS.

Affected Employees:

Employeesat DOCCS (Agency 10xxx) in the Security Services Unit (SSU - BU01) represented by the New York State Correction Officers and Police Benevolent Association (NYSCOPBA), Security Supervisors Unit (SSPU – BU61) represented by Council 82 (C82), and employees in the title of Correction Captain designated 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 Correction Captains, a one-time lump sum Retention Bonus has been approved as follows:

The Retention Bonus is not pensionable but must be included in the calculation of overtime.

Effective Dates:

The Retention Bonus is effective on the following dates:

Eligibility Criteria:

To be eligible for the new Retention Bonus payment, on 12/31/2025 employees must:

• Be employed at DOCCS (10xxx)
• Be in one of the following bargaining units:
  • M/C (06) - Correction Captains only
  • SSU (01) - Correction Officer, Correction Officer Spanish Language, Correction Sergeant, Correction Sergeant Spanish Language only
  • SSPU (61) - Correction Lieutenant and Correction Lieutenant Spanish Language only
• Have an Employee Status of Active (A), Leave with Pay (P) or Leave of Absence (L)
• Employees with an Employee Status of L who meet all remaining eligibility criteria are eligible for the Retention Bonus payment if they return to the payroll.
• Have twenty-five (25) or more years of service in any of the following Security Bargaining Units: NYSCOPBA (BUs 01,21), Council 82 (BUs 61,91), APSU (BU 31), or M/C (BU06 - Correction Captain only) as of 12/31/2025.

OSC Actions:

OSC has provided the following Additional Pay Earnings Code to process the Retention Payment

Automatic Processing

OSC will process the Retention Bonus payment for employees who meet the eligibility criteria (except for employees with an Employee Status of Leave of Absence on 12/31/2025) by inserting a row on the employee’s Additional Pay page as follows:

Agency Actions:

Agencies must pay the Retention Bonus to eligible employees with an Employee Status of Leave of Absence on 12/31/2025 who subsequently return to the payroll by submitting following information on the Additional Pay page:

Overtime Calculation:

The Retention Bonus must be included in the calculation of overtime for one year from the effective date of the payment if the employee remains in an eligible position. Each installment will be automatically included in the calculation of overtime earned from the OT Eff Date and forward, but must be end dated when:

1. One year has passed from the initial effective dates referenced above, and the employee remained in an eligible position (OSC will process).
2. The employee left an eligible position (appointed to an ineligible position, terminated or retired from state service, or deceased) before one year has passed from the effective dates referenced above (Agencies must process).

Ending Overtime Eligibility – One Year Passed

In Fiscal Year 2026-2027, OSC will automatically insert an end date on the Retention Bonus payment using the following end dates:

Note: The Earnings End Date above will be inserted on all existing rows in Additional Pay for Earnings Code RTN which do not already have an end date.

Ending Overtime Eligibility – Left Eligible Position

Agencies must insert a row on the Additional Pay page at the Effective Date level of Earnings Code RTN using the information below if, prior to a year after the effective date of the RTN payment, the employee is:

1. Appointed to an ineligible title

   OR

2. Terminated/Retired/Deceased.

Retirement and Deduction Information:

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

Tax Information:

The Retention Bonus payment is supplemental taxable income, will be added to the employee’s taxable gross wages, 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 (1.95975% for Yonkers residents and 0.50% for Yonkers non-residents).

Payroll Register and Employee’s Paycheck/Advice:

Earnings Code RTN 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.

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.