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. 2004-08

March 12, 2004

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Bi-Weekly Salary Increases, Annual Increments, Interest Penalty and Additional Provisions for Social and Human Services (P-2) Bargaining Unit Employees Agreement July 1, 2002 through June 30, 2006

I. AUTHORITY

The interest arbitration award between the State of Connecticut and the Social and Human Services (P-2) bargaining unit for the period July 1, 2002 through June 30, 2006 was ratified by the Legislature on March 8, 2004.

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-2 Interest Arbitration issued October 16, 2003. The 5% is payable for the period October 16, 2003 until the date an employee receives all the retroactive amounts due him/her under the award.

II. COMPENSATION (Article 31)

A. General Wage Increases (Article 31.1)

General wage increases will be effective as follows:

Effective Date Increase
July 11, 2003 (Retroactive) 2.5% of Base Salary
June 25, 2004 3% of Base Salary
June 24, 2005 3% of Base Salary

B. Annual Increments (Article 31.2)

Employees will continue to be eligible for and receive annual increments during the term of this contract in accordance with existing practice, except as noted below. For the second year of the agreement (2003-2004) annual increments will be delayed six months and paid accordingly in the pay periods which include January 1, 2004 or July 1, 2004. For the third year of the agreement (2004-2005) annual increments will be delayed three months and paid accordingly in the pay periods which include October 1, 2004 or April 1, 2005.

Contract Year Payable
2002-2003 July 2002/January 2003
2003-2004 January 2004/July 2004
2004-2005 October 2004/April 2005
2005-2006 July 2005/January 2006

C. Longevity (Article 31.3)

Employees will continue to be eligible for longevity payments for the life of this contract in accordance with existing practice. The longevity schedule in effect on June 30, 1985 will remain unchanged in dollar amounts for the life of the contract.

D. Night Shift Differential (Article 31.4)

Effective July 1, 2004, the night shift differential will increase to seventy cents per hour. Effective July 1, 2005, the night shift differential will increase to seventy-five cents per hour. Applicable changes will be made centrally at the proper time.

E. Weekend Differential (Article 31.5)

Effective July 1, 2004, the weekend differential will increase to forty-five cents per hour. Effective July 1, 2005, the weekend differential will increase to fifty cents per hour. Applicable changes will be made centrally at the proper time.

F. Commission on Deaf and Hearing Impaired

Refer to Supplemental Letter of Agreement for information regarding certified part-time permanent interpreters of the Commission on the Deaf and Hearing Impaired.

III. OVERTIME (Article 18.3) (new)

Pursuant to CGS Section 5-245(b)(1), the employees in the following classifications are deemed exempt from overtime payments requirements within the P-2 collective bargaining agreement: Employment Security Appeals Referee, Employment Security Associate Appeals Referee, Employment Security Principal Appeals Referee, HRO Assistant Commission Counsel 1, HRO Assistant Commission Counsel 2, Labor Department Operations Coordinator, Labor Department Program and Services Coordinator, Protection and Advocacy Program Director, Youth Wilderness School Assistant Director, Youth Wilderness School Director.

Exempt employees will be allowed to accumulate compensatory time during a four month period of either July through October, November through February or March through June. An employee should schedule and use the accumulated compensatory time within the three month period following the accumulation period.

IV. UNIFORMS AND EQUIPMENT (Article 38b) (new)

The employer will pay the cost, maintenance, or replacement, of any new equipment, uniforms, security cards, ID cards, and/or security equipment.

V. TRAVEL (Article 39)

An employee who is required to travel on employer business will be reimbursed for meals at the following rates:

Effective Effective
7/1/02 3/8/04
Breakfast $6.00 $7.50
Lunch $8.00 $9.00
Dinner $18.00 $20.00

An employee who is involved in transporting a client/resident during the lunch period and who must stop for lunch with the client resident will be reimbursed according to the above rates for the cost of his /her lunch.

Mileage reimbursement will be at the U. S. General Services Administration rate, currently 37.5 cents per mile. Such rate will be adjusted upward or downward within 30 days of any adjustment made by the GSA.

Employees required to utilize a personal vehicle for 50% of the assigned monthly workdays will be paid a daily auto usage fee of $4.50 for each day of required usage effective March 8, 2004. This fee will be in addition to the mileage reimbursement.

VI. CLIENT FRAUD SECURITY FUND (Article 41.6) (new)

The State will reimburse employees, who are employed as lawyers, for the cost of the Client Fraud Security Fund. Every attorney licensed in the State of Connecticut is required to pay a fee, currently $75.00, into the fund each year. This provision is effective March 8, 2004.

VII. TUITION REIMBURSEMENT (Article 45)

The State will allocate for tuition reimbursement each contract year the following:

2002-03 $133,000 2004-05 $200,000
2003-04 $160,000 2005-06 $200,000

These funds may be used in accordance with established policy and practice. Unexpended funds from one contract year will carry over into the following contract year. The tuition reimbursement fund will expire on June 30, 2006. Applications for tuition reimbursement that are submitted and approved within the final six months of the agreement may be paid with any remaining available funds up to three months following the expiration of the agreement.

The maximum reimbursement rate for credit courses at accredited institutions is increased to $135 per credit for undergraduate courses and $220 per credit for graduate courses effective July 1, 2003. For other courses or programs there is a 50% tuition reimbursement to a maximum of $57.50 per credit for undergraduate courses and $72.50 per credit for graduate courses.

VIII. CONFERENCE AND WORKSHOP FUNDS (Article 46)

The State will allocate for attendance by P-2 employees at professional seminars, workshops or conferences the following:

2002-03 $50,000 2004-05 $100,000
2003-04 $75,000

Each employee with more than six months of service will be entitled to a maximum of $500 reimbursement per contract year from this fund toward the cost of fees, travel, food and lodging related to attendance at such events. This entitlement may be combined once in any two year period.

Funds not reserved for seminars, workshops or conferences by March 1 of each year may be transferred to the P-2 tuition reimbursement program upon request of the Union. Funds committed for workshops/conferences in one contract year will carry over to the next contract year.

IX. STANDBY PROGRAM (Article 47)

The Standby Program is within the Department of Children and Families.

A Home and Office premium annual payment of $400.00 will be paid to those workers assigned to the full-time primary standby function and who have performed such function for a full year. Individuals who have completed less than a full year of primary standby work will be entitled to a pro-rata payment based on the number of months of service. The initial premium of $200.00 will be paid after the primary standby program has been operational for six months. Subsequent $200.00 premiums will be paid on a semi-annual basis.

Effective July 1, 2005 a Home and Office premium annual payment of $500.00 will be paid to those workers assigned to the full time primary standby function and who have performed such function for a full year. Individuals who have completed less than a full year of primary standby work will be entitled to a pro-rata payment based on the number of months of service. The premium will be paid on a semi-annual basis of $250.00.

Compensation for backup standby workers will be at the rate of $1.50 per hour for hours of standby assignment when the regional office is closed during the week, on weekends and on non-premium holidays. Compensation for backup standby workers will be at the rate of $3.00 per hour for the twenty-four hour shift where the beginning of the shift falls on New Year's Day (January 1), Memorial Day, Independence Day, Labor Day, Thanksgiving or Christmas (December 25).

X. RETROACTIVE PAYMENTS

For the period July 1, 2002 through April 15, 2004, agency staff must calculate any retroactive payments. Checks dated April 30, 2004 should reflect updated additional compensation; e.g., shift differentials, overtime, etc., for the particular bi-weekly pay periods.

Payments will be separately identified and subject to mandatory deductions only; i.e., federal withholding tax and state income tax annualized, social security tax, retirement contributions, and garnishments (if applicable).

A. Retroactive Annual Increments and Maximum Step Lump Sums

Effective Date Period Covered Check Date
July 1, 2002 06/28/02 - 04/15/04 04/30/04
January 1, 2003 12/27/02 - 04/15/04 04/30/04
January 1, 2004 12/26/03 - 04/15/04 04/30/04

B. Retroactive General Wage Increase (GWI)

Effective Date Increase Period Covered Check Date
July 11, 2003 2.5% 07/11/03 - 04/15/04 04/30/04

XI. SCHEDULED PAYMENT DATES

A. General Wage Increase

The general wage increase will be made centrally at the proper time. Agency staff must review the Salary Change Mass Update by Plan/Pay Group Report and the Inactive and Transferred Employees Report.

Effective Date Pay Period Check Date
June 25, 2004 06/25/04 - 07/08/04 07/23/04
June 24, 2005 06/24/05 - 07/07/05 07/22/05

B. Annual Increments

Annual increments will be entered centrally at the proper time as follows:

Effective Date Pay Period Check Date
July 2004 06/25/04 - 07/08/04 07/23/04
October 2004 10/01/04 - 10/14/04 10/29/04
April 2005 04/01/05 - 04/14/05 04/29/05
July 2005 06/24/05 - 07/07/05 07/22/05
January 2006 12/23/05 - 01/05/06 01/20/06

C. Lump Sum Payments for Maximum Step Employees

The agency must process these lump sum payments manually and follow the effective dates and pay periods of annual increments.

XII. CALCULATION OF INTEREST PENALTY

An interest penalty of 5% is payable for the period October 16, 2003 until the date the

eligible employee receives all the retroactive amounts due him/her under the arbitration award.

It is possible that one or more wage increases were due before the award was issued and another wage increase was due after the award was issued. Therefore, the amounts due will have to be split out and the number of days for which interest should be paid will need to be calculated individually.

Retroactive Payments from June 28, 2002 through December 25, 2003

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

Example: If the lump sum amount was $300:
 
197 days/360 days x .05 x $300 = $8.21

Multiply the lump sum amount paid by the number of days between October 16, 2003 and the date of the payment, April 30, 2004 (which is 197 days) divided by 360; then the product multiplied by 5%.

Retroactive Payments from December 26, 2003 through April 15, 2004

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

Example: If the lump sum amount was $100:
 
126 days/360 days x .05 x $100 = $1.75

Multiply the lump sum amount paid by the number of days between December 26, 2003 and the date of the payment, April 30, 2004 (which is 126 days) divided by 360, then the product multiplied by 5%.

Agencies should refer to Office of Labor Relations General Notice No. 96-23 - Payment of Interest Payments for Interest Arbitration Awards dated May 10, 1996.

XIII. PAYROLL PROCEDURES

A. Payment of Retroactive Salary Increases and Retroactive Annual Increments and Retroactive Lump Sums

Amount; Time Reporting Code XRTRA or Earnings Code RTR.

B. Implementation of General Wage Increase

New pay plans will be implemented centrally with the new hourly rate and bi-weekly salary effective with the pay period, at the proper time.

C. Payment of Lump Sum(s)

Amount; Time Reporting Code XMISA or Earnings Code MPS.

These lump sum payments are subject to mandatory deductions; i.e., federal withholding and state income tax annualized, social security tax, retirement contributions, and garnishments (if applicable).

D. Interest Arbitration Award

Amount; Time Reporting Code XINTA or Earnings Code INT.

Agencies should use Account 50740, Interest Penalty - Payroll Awards as the expenditure account 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.

E. Shift Differential

Amount or Hours; Earnings Code SD1 or Shift 1; Account 50180 or
Amount or Hours; Earnings Code SD2 (Time and a Half) or Shift 2; Account 50180 or
Amount; Earnings Code SD3 or Shift 3; Account 50180.

F. Daily Auto Usage Fee

Amount; Time Reporting Code XAUTA or Earnings Code AUT.

G. Home and Office Premium

Amount; Time Reporting Code XHOMA or Earnings Code HOM.

H. Standby

Amount; Time Reporting Code XOCXA or Earnings Code OCA.

Units; Time Reporting Code XOCCH or XOCDH.

XIV. TUITION REIMBURSEMENT

Tuition Reimbursement - 9916 Fund

All pre-approved tuition reimbursement requests should be forwarded to the Comptroller's Policy Services Division - Tuition Unit for processing. All non-reportable tuition reimbursements must be submitted on an approved Application for Tuition Reimbursement, PERT-1 Form. All reportable tuition reimbursements must be submitted on the CO-17XP-PR, Employee Payroll Reimbursement Form and a PERT-1 Form must also be completed and attached. Please see Memorandum No. 2003-27 dated June 27, 2003 and Memorandum No. 2003-47 dated October 15, 2003 for additional procedures.

Please note: Reimbursements cannot be made until the release of funding by the Office of Policy and Management. In the past, this funding was not made available to coincide with the implementation date of the contract provision. Please expect delays in reimbursements at the beginning of contract years.

XIV. GENERAL

Questions may be directed as follows:

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

Contract Issues: Agency Personnel Officers;

Tuition Reimbursement: Office of the State Comptroller, Policy Services Division, (860) 702-3344;

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

NANCY WYMAN
STATE COMPTROLLER

 NW:CH 

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