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. 2003-24

June 17, 2003

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Deferred Payment of Accrued Vacation and Sick Leave for Participants of the 2003 Early Retirement Incentive Program

I. AUTHORITY

The Legislature of the State of Connecticut enacted an Early Retirement Incentive Program (ERIP) for certain members of the State Employee Retirement System (SERS). The purpose of this communication is to provide instructions for unused vacation/sick leave payments for participants in the ERIP.

II. PROVISIONS FOR UNUSED VACATION AND SICK LEAVE DAYS

By its terms, the ERIP stipulates that payments to participating SERS members for unused vacation and sick leave will be made pursuant to the following schedule: one third of the amount owed on July 1, 2005; one third of the amount owed on July 1, 2006; and one third of the amount owed on July 1, 2007. The State may, at its option, make the payment in one installment on or before July 1, 2005, if the total amount owed is less than $2000.

III. PAYROLL PROVISIONS

Payments for unused sick and vacation accruals remain the responsibility of the employing agency. Payment for the sick accrual will be for one quarter of sick leave up to a maximum of 60 days. Managers, confidential employees, and other employees hired on or before June 30, 1977 are entitled to accrue up to a maximum of 120 days of vacation time. All others accrue up to a maximum of 60 days vacation time. Payments will be taken out of the agency's budget in each of the applicable fiscal years and should be made to employees who participated in the 2003 Early Retirement Incentive Program as follows:

A. Payments due that are less than $2,000 will be made in one installment on the first installment date, check date June 24, 2005 (pay period May 27, 2005 through June 9, 2005).

B. Payments due that are greater than $2,000 must be made in three (3) equal installments on the following dates:

Installment Pay Period Check Date
7/1/05 5/27/05 thru 6/9/05 6/24/05
7/1/06 5/26/06 thru 6/8/06 6/23/06
7/1/07 5/25/07 thru 6/7/07 6/22/07

1.The calculation of the payments due for accrued vacation and sick leave should be based on the employee's rate of pay at the time of termination. Deferred increases should not be included in the calculation.

2. Payment for each vacation and sick accrual must be identified separately on the attached form. 

3. In the event that the employee dies prior to receiving full payment of the deferred accruals, the unpaid balance should be paid as soon as practicable in a lump sum to the last retirement beneficiary of record.

4. The vacation and sick accrual payments will have deductions made for FICA and withholding taxes (federal and state) at the supplemental wage rate. Retirement contributions will be deducted from the vacation accrual payment. The employee will be issued a W-2 form for each year of the installment payments of vacation and sick accrual payments.

Please note that reorganization or re-alignment of an agency structure does not negate the obligation to provide these deferred payments. Please track this obligation with care.

C. At the time the employee's record is initially inactivated, the following steps should be taken to ensure that there are no erroneous payments or that the state share of medical premiums is not paid:

Due to the pending implementation of CORE-CT, additional payroll instructions regarding activating an employee to pay an accrual payment will be provided at a later date.

IV. DOCUMENTATION REQUIRED FROM AGENCIES IN SUPPORT OF THIS DEFERRED PAYMENT SCHEDULE

The attached form must be completed by each agency wherein a deferred payment of unused accrued vacation and/or sick leave is due. Each former employee impacted by this prospective payment should be listed in alphabetical order, citing the information outlined therein. It is important that this information is presented in an accurate, comprehensive and clear manner. This completed form must be provided to the Comptroller's Payroll Services Division no later than August 1, 2003. Agencies must keep a copy of the completed form.

V. QUESTIONS

Please direct all questions concerning this memo as follows:

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

Memo Interpretation: Office of the State Comptroller; Policy Services Division at (860) 702-3440.

 

NANCY WYMAN
STATE COMPTROLLER

NW:ED

Attachment 

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