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. 2001-53

September 20, 2001

TO THE HEADS OF ALL STATE AGENCIES

Attention:
Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Adjustment of Protective Services (NP-5) Employee Leave Balances

I. AUTHORITY:
An arbitration award was issued on a Protective Services (NP-5) Institutional grievance concerning employee leave balances and the longer workdays.

When the length of the work week increased, the employee leave balances, as of July 1, 1998, were not adjusted to reflect the longer work day. The award does not include adjustment of leave balances for the schedule increases in 1995, 1996 or 1997 or any prior schedule increases.

II. ELIGIBLE EMPLOYEES:
Full-time employees who were in the NP-5 bargaining unit as of June 30, 1998 and were subject to the work schedule increase from 38.75 to 40 hours effective July 1, 1998 are eligible. Part-time employees or any employees who were hired, transferred or promoted into the NP-5 bargaining unit after that date are not eligible.

III. CALCULATION OF LEAVE ADJUSTMENT:  
The Office of Labor Relations has distributed in Excel and Word forms for calculating the vacation and sick leave balances. The formula for calculating the additional leave hours can be found in the Office of Labor Relations General Notice No. 2001-12, dated August 16, 2001.

IV. MAXIMUM VACATION LIMITATION: 
Employees in the NP-5 bargaining unit are subject to a maximum accumulation of vacation time of either 120 days (960 hours) or 60 days (480 hours) depending upon date of hire. Employees who would exceed the maximum accumulation for vacation with the addition of the extra time will have the option to elect to delay the crediting of the extra vacation and sick leave time until December 1, 2001. They will have the opportunity to use sufficient vacation time before November 30, 2001 to be able to receive the benefit of the additional vacation time. In no event can the employee's applicable maximum be exceeded when the extra vacation leave is credited, whether initially or on December 1, 2001.

V. EXHAUSTION OF ACCRUED LEAVE: 
If an employee went off the payroll due to the exhaustion of accrued leave, the employee will have the option of having his/her additional hours of vacation and sick leave credited on retroactive basis as of July 1, 1998 if that date was prior to the unpaid absence(s). If an employee chooses this option, he/she will be entitled to use the additional time to be compensated during the retroactive period of absence.

VI. RETIREES AND SEPARATED EMPLOYEES LEAVE ACCRUALS: 
Eligible employees who retired on or after August 1, 1998 must have their vacation and sick leave balances recalculated. Eligible employees who separated on or after July 1, 1998 must have vacation balances recalculated. The recalculation will determine if they are entitled to additional compensation.

No additional payment can be made to these individuals for time in excess of the 120 day or 60 day vacation limitation applicable to the particular individual or in excess of the one-quarter payment of sick leave to a maximum of 60 days for retirees. Also, the additional vacation leave amount will need to be reported to the Retirement and Benefit Services Division in the manner detailed 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.

A. Calculation of lump sum: When recalculating the lump sum, agencies are to calculate to the date of retirement. Any additional accrued vacation and sick time derived through the recalculation mechanism should be multiplied by the hourly rate of pay in effect at the time of termination.
 
B. Payroll Procedures: The lump sums must be entered effective with the pay period November 30, 2001 through December 13, 2001 (check date December 28, 2001) using D/OE 28 Lump Vacation Pay with Major-Minor 01-120 and/or D/OE 29 Retiree Sick Pay with a Major-Minor 01-090. The agency payroll staff must review the Employee's Masterfile to ensure an employee's eligibility for the adjusted payments.
 
The lump sum retirement vacation pay is subject to mandatory deductions: federal withholding and state income tax annualized, social security tax, retirement contributions, and garnishments (if applicable). The lump sum retirement sick pay is subject to federal withholding, state income tax annualized and social security tax only.
 
NOTE: Please ensure that the proper retirement code designation is utilized as required by the employee's Retirement Plan Status at retirement or separation.
 
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 purposes of making this payment.

VII. EMPLOYEES WHO CHANGED AGENCIES: For employees who changed agencies since July 1, 1998, the current agency should make the calculations. The prior agency should provide information about the July 1, 1998 leave balances as soon as possible when requested by the current agency.

VIII. GENERAL: Questions may be directed as follows:

Policy and Procedure: Agency Human Resource Officer;

Arbitration Award: Office of Labor Relations, (860) 418-6218;

Memorandum Interpretation: Office of the State Comptroller, Policy Services Division, (860) 702-3440;

Payroll Procedures: Office of the State Comptroller,  Payroll Services Division, (860) 702-3463.

Direct list of affected Retirees and Separated Employees to:
Retirement and Benefit Services Division, AUDIT UNIT, 55 Elm Street, Hartford, CT 06106.

NANCY WYMAN
STATE COMPTROLLER

NW:CG

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