STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

INTERDEPARTMENTAL MEMORANDUM

June 18, 2002

TO THE HEADS OF ALL STATE AGENCIES

I. AUTHORITY

The arbitration award between the State of Connecticut and the Connecticut State Employees Association concerning the Education Professionals (P-3B) bargaining unit, for the period July 1, 2001 through June 30, 2005, became effective on May 4, 2002.

 

Pursuant to Section 5-276b of the Connecticut General Statutes, an interest penalty of 5% per annum is to be paid for late implementation of the provisions of the P-3B Interest Arbitration issued March 23, 2002. The 5% is payable for the period March 23, 2002 until the date an employee receives all the retroactive amounts due him/her under the award.

II. ELIGIBLE EMPLOYEES

Education Professionals Bargaining Unit employees who were actively employed on July 1, 2001 but have since retired or separated from State service.

III. COMPENSATION

A. Retroactive General Wage Increases are effective as follows:

B. Retroactive Annual Increments

 

Employees will continue to be eligible for and receive annual increments in July 2001 or January 2002 in accordance with existing practice.

 

C. Retroactive Lump Sum Payments

 

Effective October 1, 2001, State School Teachers (12 month), Pupil Services Specialists (12 month), and Correction Department Vocational Instructors (12 month), who were employed as of July 1, 2001 and remained employed through October 1, 2001, should receive a $500 lump sum payment.

IV. RETROACTIVE PAYMENTS FOR RETIRED AND SEPARATED EMPLOYEES

When calculating the retroactive payments, agencies are to calculate to the date of retirement or separation from State service. Agency staff must calculate and process the following retroactive payments manually. Checks dated July 26, 2002 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)

B. Retroactive Annual Increments

C. Retroactive Lump Sum Payments - For Eligible Retired and Separated Employees

D. Retroactive Annual Skill Premium (EMT's)

 

Emergency Medical Technicians who were regularly assigned E.M.T. duties were eligible to receive a $400 stipend. Agencies may have already paid this EMT premium to appropriate personnel. If a retired or separated employee was due this premium, but not paid, please process as follows:

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. CALCULATION OF INTEREST PENALTY

An interest penalty of 5% is payable for the period March 23, 2002 until the date the eligible employee receives all the retroactive amounts due him/her under the arbitration award.

125 days/360 days multiplied by 5% multiplied by the lump sum payment.

Example: If the retroactive lump sum was $300:

125 days/360 days x .05 x $300 = $5.21

Multiply the lump sum amount paid by the number of days between March 23, 2002 and the date of the payment, July 26, 2002 (which is 125 days) divided by 360, then the product multiplied by 5%.

Agencies should refer to Office of Labor Relations General Notice 96-23 - Payment of Interest Payments for Interest Arbitration Awards dated May 10, 1996.

 VII. 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, Retroactive Annual Increments, Retroactive Lump Sum and Retroactive EMT Premium (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. Interest Arbitration Award

 

1. On-Line: Screen 047 or 190; R-3; Amount; D/OE Code 1U.

 

2. Remote Job Entry: ZT Transaction; Same as above.

 

Agencies should use Major/Minor 01-920, Interest Penalty - Payroll Awards as the expenditure object code.

 

Interest paid on a wage award is not considered wages (IRS Revenue Ruling 72-268). Therefore, the subject interest penalty would not be subject to withholding for income taxes, employment taxes, and retirement contributions.

VIII. GENERAL

Questions may be directed as follows:

NANCY WYMAN
STATE COMPTROLLER

NW:CH

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