Purpose: 

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the State Police Troopers Unit (Troopers Unit) and Commissioned/Non-commissioned Officers (CO/NCO) Non-Pensionable Lump Sum Payment and to provide processing instructions for entering the payment for employees not processed automatically or who require an adjustment.

Affected Employees: 

Employees in the Troopers Unit (BU07) and CO/NCO (BU17) who meet the eligibility criteria are affected.

Background: 

Per Chapter 130 of the Laws of 2025, employees in the Bargaining Units listed above may be eligible for a one-time lump sum payment.

The one-time lump sum payment is not pensionable and not subject to across-the-board increases but must be included in the calculation of overtime.

Effective Dates: 

The Non-Pensionable Lump Sum Payment is effective 02/13/2025, end dated 02/11/2026 and will be processed in separate paychecks in the Administration Lag Pay Period 6L Check Dated 07/02/2025. 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 Non-Pensionable Lump Sum Payment will be the same as an employee’s regular check.

Eligibility Criteria: 

Employees who meet the following criteria are eligible for the Non-Pensionable Lump Sum Payment:

• On 10/03/2024, employees must:
  • Be in one of the following bargaining units:
    • APSU (31)
    • CO/NCO (17)
    • CSEA (02, 03, 04, 47, 97)
    • M/C (06, 18, 46, 66, 78, 79, 96, 98)
    • PEF (05)
    • RRSU (67)
    • SSU (01, 21)
    • SSPU (61, 91)
    • Troopers Unit (07)
    • SUNY M/C (13)
    • UUP (08)
  • Have an Employee Status of Active, Leave With Pay, or Leave of Absence.
• On 02/12/2025 employees must:
  • Be in the following bargaining unit:
    • CO/NCO (17)
    • Troopers Unit (07)
  • Have an Employee Status of Active, Leave With Pay, or Leave of Absence.
    • Employees with an Employee Status of Leave of Absence with an Action/Reason code of Leave of Absence/MLS (Mil Stip) will receive the lump sum payment on the Check Date listed above.
    • Employees with an Employee Status of Leave of Absence (except with an Action/Reason code of Leave of Absence/MLS) who meet all remaining eligibility criteria are eligible for the lump sum payment if they return to the payroll on or before 02/12/2026 (Administration Lag and Institution Extra-Lag) or 02/18/2026 (Institution Lag and Administration Extra-Lag).
• Employees must have continuous service as stated in Civil Service Law Section 130.3(c) from 10/03/2024 through 02/12/2025.
• Employees who retired after 10/03/2024 but on or before 02/12/2025 and who meet all other eligibility criteria will receive the payment on the Check Date listed above.

Employees in the following situations are not eligible to receive the Non-Pensionable Lump Sum Payment:

• Employees who have an Employee Status of Terminated or Deceased between 10/03/2024 and 02/12/2025 for any length of time.
• Employees who have service between 10/03/2024 and 02/12/2025 in a bargaining unit other than the following:
  • APSU (31)
  • CO/NCO (17)
  • CSEA (02, 03, 04, 47, 97)
  • M/C (06, 18, 46, 66, 78, 79, 96, 98)
  • PEF (05)
  • RRSU (67)
  • SSU (01, 21)
  • SSPU (61, 91)
  • SUNY M/C (13)
  • Troopers Unit (07)
  • UUP (08)
• Employees who have already received a Non-Pensionable Lump Sum Payment (Additional Pay Earnings Code BNP) and who are not in a BU07 or BU17 position on 10/03/2024.

OSC Actions:

Earnings Codes

OSC has provided the following Additional Pay Earnings Codes to process the Non-Pensionable Lump Sum Payment:

Automatic Processing

OSC will process the Non-Pensionable Lump Sum Payment for employees who meet the eligibility criteria except for employees with an Employee Status of Leave of Absence (except with an Action/Reason Code of Leave of Absence/MLS) on 02/12/2025

Full Payment Amount:

The following employees will receive the full payment amount of $3,000:

• Employees with an Employee Status of Active or Leave With Pay whose Comp Rate Code is ANN and work percent is 100% on 02/12/2025.
• Employees with an Employee Status of Leave With Pay with an Action/Reason code of Paid Leave of Absence/SKL (Sick Lv) whose Comp Rate Code is ANN and work percent is 50% on 02/12/2025.
• Employees with an Employee Status of Active whose Comp Rate Code is ANN and who is on a voluntary reduction in work schedule (VRWS) on 02/12/2025.
• Employees with an Employee Status of Leave With Pay with an Action/Reason code of Paid Leave of Absence/MLS (Mil Stip) whose Comp Rate Code is BIW and work percent is 100% on 02/12/2025.
• Employees with an Employee Status of Leave of Absence with an Action/Reason code of Leave of Absence/MLS (Mil Stip) whose Comp Rate Code is ANN and work percent is 100% on 02/12/2025.

Creation of Additional Pay Record

In Administration Pay Period 6L, OSC will create an Additional Pay record for eligible employees as follows:

Agency Actions – Payments Not Processed Automatically:

Agencies must submit transactions to process the Non-Pensionable Lump Sum Payment for the following employees:

• Employees who meet the Eligibility Criteria but have an Employee Status of Leave of Absence (except with an Action/Reason code of Leave of Absence/MLS) on 02/12/2025 and who return to the payroll on or before 02/11/2026 (Administration Lag and Institution Extra- Lag) or 02/18/2026 (Institution Lag and Administration Extra-Lag).
• Employees who meet the Eligibility Criteria but whose eligible employment between 10/03/2024 and 02/12/2025 is split between multiple Empl Record numbers in PayServ.
• Employees who did not meet the Eligibility Criteria at the time of automatic processing but, because of a retroactive job change which impacts the employee’s status on 10/03/2024 and 02/12/2025, are now entitled to the lump sum payment.

Submitting Payment

To process the Non-Pensionable Lump Sum Payment to eligible employees who were not processed automatically, agencies must submit the following information on the Additional Pay page:

Eliminating the Original Payment Amount

Agencies must eliminate the payment amount for employees if the following situation occurs: 

• Eligible Transactions Submitted Subsequent to Automatic Payment Processing
  If subsequent to an employee receiving the automatic lump sum payment, a transaction is submitted on the Job Data page that results in the employee no longer meeting the above Eligibility Criteria to receive the $3,000 payment, the agency must reverse the lump sum payment amount.

Reversing Payment

To reverse a previously paid Non-Pensionable Lump Sum Payment, the agency must submit a Data Change/Cor History (DTA/COR) to request the removal of the BNP row from Additional Pay (Please refer to State Payroll Bulletin 741 for additional guidance). 

Recovering Non-Pensionable Lump Sum Payment Overpayments:

If an employee incorrectly received the Non-Pensionable Lump Sum Payment, agencies must submit the following information on the Additional Pay page to recover the overpayment:

Goal Balance: The Goal Balance field should be left blank when entering the initial adjustment record or a new adjustment record. When adjusting the Earnings amount or Goal Amount of an existing adjustment record, the Goal Balance from the prior row should be carried up from the prior row. 

Note: Overtime monies may also need to be recouped. Please refer to Recovering Overtime Monies When the Original Non-Pensionable Lump Sum Payment is Reduced section below.

Overtime Calculation:

The Non-Pensionable Lump Sum Payment will be included automatically 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 BNP.

Ending Overtime Eligibility

If an employee has received the Non-Pensionable Lump Sum Payment and is appointed to a position in a bargaining unit other than APSU (31), CO/NCO (17), CSEA (02, 03, 04, 47, 97), M/C (06, 18, 46, 66, 78, 79, 96, 98), PEF (05), RRSU (67), SSU (01, 21), SSPU (61, 91), SUNY M/C (13) Troopers Unit (17) or UUP (08), the Non-Pensionable Lump Sum Payment cannot be included in the compensation calculation of overtime earned on or after the date of the appointment. Therefore, agencies must insert a row on the Additional Pay page at the Effective Date level of Earnings Code BNP and enter the following information:

Recovering Overtime Monies When the Original Non-Pensionable Lump Sum Payment is Eliminated

If an employee’s lump sum payment is eliminated and the lump sum payment amount was used in their overtime calculation, the overtime monies paid must be reduced as follows:

Annualized Employees: The negative overtime adjustment for annualized employees will be calculated automatically when the lump sum payment (Earnings Code BNP) is adjusted on the Additional Pay page. 

If the agency would like to recover the entire overtime overpayment in a single paycheck, a general comment must be entered stating that the retroactive adjustment must be left on. 

If the entire overpayment will not be recovered in a single paycheck, a general comment must be entered stating that the retroactive adjustment should be marked paid out. In addition, agencies must submit a negative overtime adjustment on the Time Entry page or the Time Entry Interface (NPAY502) using the following information in each pay period until the full overpayment is recovered:

*Please refer to Payroll Bulletin No. 1893 for more information on overtime adjustments.

Retroactive Overtime Processing

OSC will automatically calculate retroactive adjustments for Time Entry overtime earnings that are calculated by the system based on annual salary such as OT – Nu 07 (Earnings Code OTI). These adjustments will be paid using the associated retroactive earnings code and will be paid in the applicable Check Date as referenced in the Effective Dates section.

Control-D Report Available After Processing: 

After processing of the Non-Pensionable Lump Sum Payment in Administration Pay Period 6L (Check Date 07/02/2025), the following Control-D report will be available for agency use:

NPAY770 – One Time Payment Report 

This report identifies all employees who received the Non-Pensionable Lump Sum Payment in the above check date.

Retirement and Deduction Information:

The Non-Pensionable Lump Sum Payment is non-pensionable and not subject to union dues. Deductions will be taken from the lump sum payment for garnishments and federal levies.

Tax Information:

The Non-Pensionable Lump Sum Payment is supplemental 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).

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.

Payroll Register and Employee’s Paycheck/Advice:

The Earnings Code and the amount paid will be displayed on the Payroll Register. The Earnings Description and the amount paid will appear on the employee’s paycheck stub or direct deposit advice. If the number of earnings codes exceeds 13, agencies should utilize Locked Query LQ_PCD_PAYCHECK_EARNINGS_BY_ID to identify a complete list of earnings.

Non-Pensionable Lump Sum Payments processed in Administration Pay Period 6L (Check Date 07/02/2025) will be made in a separate check or Direct Deposit. Payments made subsequent to this check date will not be made in a separate check or Direct Deposit.  The 07/02/2025 separate check payments 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 this bulletin may be directed to the Payroll Earnings mailbox.