Purpose:

The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the 2024 retroactive increase to Expertise Pay for employees represented by the New York State Police Investigators Association, Local 4, I.U.P.A., AFL-CIO (NYSPIA), and to provide agency instructions for submitting payments not processed automatically.

Affected Employees:

Employees in the State Police Investigators Unit (BCI – BU62) who meet the eligibility criteria are affected.

Background:

Chapter 182 of the Laws of 2025 implements the 2023-2026 Agreement between New York State and the New York State Police Investigations Association and provides for an increase to the 2024 annual expertise payment for Investigators in Bargaining Unit 62.

Effective Dates:

The retroactive increase to Expertise Pay is effective on 11/01/2024, end dated on 10/31/2025 and will be systematically processed by OSC in the Administration Pay Period 16L check dated 11/19/2025.

Eligibility Criteria:

Employees in Bargaining Unit 62 who have a Payroll Status of Active, Leave With Pay or Leave of Absence on or after the applicable Effective Date provided in the Effective Dates section who are receiving Expertise Pay at the Current Amount are eligible for the following increase:

OSC Actions:

OSC will automatically insert a row on the Additional Pay page using the applicable Effective Date from the Effective Dates section to reflect the 2024 increase to Expertise Pay for eligible employees as follows:

Automatic Retroactive Processing

OSC will automatically calculate retroactive adjustments for Time Entry earnings that are calculated by the system and include Expertise Pay (Earnings Code EXP) such as OT – Nu 62 (Earnings Code OTH).

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

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 Pay Period 17L, agencies must report the adjustment amount for earnings codes such as OT Override (Earnings Code OTO).

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 necessary adjustment:

• If an employee has 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 – Nu 62 (Earnings Code OTH), 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 OT Override (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 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 that are a result of a retro salary increase.

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:

Control-D Reports Available After Processing:

The following Control-D report will be available after processing of the automatic increase:

NPAY770 – One Time Payment Report

This report identifies all employees who received an automatic 2024 retroactive increase to State Police Expertise Pay effective 11/01/2024.

Retirement Information:

The 2024 State Police Expertise Pay is included for retirement purposes for employees in BU62.

General Deductions: 

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:

These monies are supplemental taxable income, will be included in the employee’s taxable gross and are subject to all 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 (1.95975% for Yonkers residents and 0.50% for Yonkers non-residents).  

Payroll Register and Employee’s Paycheck/Advice:

All retroactive adjustments will be displayed on the Payroll Register using the appropriate Earnings Code and the amount paid and will be displayed on the employee’s paycheck stub or direct deposit advice using the appropriate Earnings Description and the amount paid unless the number of earnings codes exceeds 13. Agencies should utilize Locked Query LQ_PCD_PAYCHECK_EARNINGS_BY_ID to identify a complete list of regular earnings and retroactive adjustments if there are more than 13 earnings codes. 

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 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.

Questions regarding deductions may be directed to the Payroll Deduction mailbox.

Questions regarding taxes may be directed to the Tax and Compliance mailbox.