COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER

OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775

MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 2001-44

August 1, 2001

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Retroactive Salary Increases, Retroactive Annual Increments and Lump Sum Payments for Retired and Separated Maintenance and Service (NP-2) Bargaining Unit Employees
I. AUTHORITY
The arbitration award between the State of Connecticut and the Connecticut Employees Union Independent concerning the Maintenance and Service (NP-2) bargaining unit, for the period July 1, 1999 through June 30, 2002, was approved by Legislature on July 23, 2001.
 
II. ELIGIBLE EMPLOYEES
Maintenance and Service Bargaining Unit employees who were actively employed on July 1, 1999 but have since retired or separated from State service.
 
III COMPENSATION
 
A. Retroactive General Wage Increases are effective as follows:
Effective Date Increase
July 1, 1999 (Retroactive)  4.00% of Base Salary
July 1, 2000 (Retroactive)  3.75% of Base Salary
July 1, 2001 (Retroactive)  4.00% of Base Salary
B. Retroactive Annual Increments
 
Employees will continue to be eligible for and receive annual increments in July or January during the term of this contract in accordance with existing practice.
 
C. Retroactive Lump Sum Payments for Maximum Step Employees
 
Effective July 1, 2000, eligible employees who were at the maximum step of the salary schedule as of the annual increment effective dates should receive a $500 lump sum payment when the annual increment would have applied.
 
IV. RETROACTIVE PAYMENTS FOR RETIRED AND SEPARATED EMPLOYEES
When calculating the retroactive payments, agencies are to calculate to the date of retirement or separation. For the period July 1, 1999 through July 26, 2001 agency staff must calculate and process the following retroactive payments manually. Checks dated August 24, 2001 should reflect the additional compensation due as a result of the manual calculation of the retroactive difference due on the biweekly and overtime payments made to impacted former employees during the aforementioned dates and lump sums as applicable.
 
Payments should be identified separately and coded with the applicable DOE. Such payments are subject to mandatory deductions: federal withholding tax and state income tax annualized, social security tax, retirement contributions and garnishments (if applicable). Any lump sum retirement sick pay is subject to federal withholding, state income tax annualized and social security tax only.
A. Retroactive General Wage Increase (GWI) 
 
Effective Date Salary Increases Period Covered Check Date
July 1, 1999 4.00% of base salary 06/18/99 -08/09/01 08/24/01
July 1, 2000  3.75% of base salary 06/30/00 -08/09/01 08/24/01
July 1, 2001 4.00% of base salary 06/29/01 -07/26/01 08/24/01
B. Retroactive Annual Increments
 
Annual Increment Date Period Covered Check Date
July 1, 1999 06/18/99 -08/09/01 08/24/01
January 1, 2000 12/31/99 -08/09/01 08/24/01
July 1, 2000 06/30/00 -08/09/01 08/24/01
January 1, 2001 12/29/00 -08/09/01 08/24/01
July 1, 2001 06/29/01 -07/26/01 08/24/01
C. Retroactive Lump Sum Payments for Maximum Step Employees
 
Effective Date Period Covered Check Date
July 1, 2000 06/30/00 -08/09/01 08/24/01
January 1, 2001 12/29/00 -08/09/01 08/24/01
July 1, 2001 06/29/01 -07/26/01 08/24/01
V. RETIREMENT PROCEDURES
The additional retroactive compensation must be reported to the Retirement and Benefits Services Division in the manner described below as such additional payments may have an impact for retirement benefit purposes.
 
Each agency must provide the Retirement and Benefit Services Division's Audit Unit with a list of affected retirees accompanied by the worksheet detailing the calculations utilized for these adjustment payments. Worksheets for separated employees must also be provided with a clear notation on each worksheet indicating such status.
 
VI. PAYROLL PROCEDURES
Agency staff must ensure that the employee's masterfile data (Pay Plan, Salary Group and Step, Hourly Rate and Bi-weekly Salary) are correctly coded.
 
Retired and separated employees who were deleted from the masterfile must be set up as new employees. You must enter a pay code 1, 2 or 3 for these individuals to avoid generating a regular pay check in the system. In lieu of 301 documentation, a memo must be submitted to the Comptroller's Payroll Services Division listing the employees added to the payroll system for the purpose of making this payment.
A. Payment of Retroactive Salary Increases and Retroactive Annual Increments (including other earnings if applicable)

1. On-Line: Screen 047 or 190; R1; Amount; D/OE Code 10. 
2. Remote Job Entry: ZT Transaction; Same as above.

B. Payment of Retroactive Lump Sum(s)

 1. On-Line: Screen 047 or 190; R1; Amount; D/OE Code 10.
 2. Remote Job Entry: ZT Transaction; Same as above.

C.Split Pay Periods for Retroactive General Wage Increases
 
General Wage Increase effective July 1, 1999. The effective pay period is June 18, 1999 through July 1, 1999. Wages earned for the period June 18, 1999 through June 30, 1999 should be paid at the old rate. The wages earned for July 1, 1999 should be paid at the new rate, effective July 1, 1999.
 
General Wage Increase effective July 1, 2000. The effective pay period is June 30, 2000 through July 13, 2000. Wages earned for June 30, 2000 should be paid at the old rate. The wages earned for the period July 1, 2000 through July 13, 2000 should be paid at the new rate, effective July 1, 2000.
 
General Wage Increase effective July 1, 2001. The effective pay period is June 29, 2001 through July 26, 2001. Wages earned for the period June 29, 2001 through June 30, 2001 should be paid at the old rate. The wages earned for the period July 1, 2001 through July 26, 2001 should be paid at the new rate, effective July 1, 2001.
 
Annual Increments should be processed in the same manner as noted above, if a split pay period exists.
 
VII. GENERAL
 
Questions may be directed as follows:
 
Salary Schedules: DAS-Personnel Division, 713-5205;
 
Payroll Procedures: Office of the State Comptroller, Payroll Services Division, (860) 702-3463;
 
Remote Job Entry: Office of the State Comptroller, Payroll Services Division, (860) 702-3451;
 
Memorandum Interpretation: Office of the State Comptroller, Policy Services Division, (860) 702-3440;
 
Contract Issues: Agency Personnel Officer.
 
Direct List of Affected Retirees and Separated Employees 
With a Copy of Calculation Worksheet to:  Retirement & Benefits Division 
Audit Unit 
55 Elm Street, Hartford, CT 06106.

 

NANCY WYMAN
STATE COMPTROLLER

NW:CH

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