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 2005-24

July 12, 2005

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Performance Assessment and Recognition System (PARS) Payments

Effective June 24, 2005 there will be a wage increase available to all managers who meet the criteria. Additionally, in accordance with the Department of Administrative Services Memorandum dated June 29, 2005, issued by Linda Yelmini, Commissioner, Department of Administrative Services (DAS), Performance Assessment and Recognition System (PARS) bonuses are effective with the pay period beginning June 24, 2005 (check date July 22, 2005).

In response to agencies' concerns, the Department of Administrative Services has changed the deadline for entering performance recognition awards bonuses (and bonuses only) into Core-CT to July 26, 2005 (check date August 5, 2005). Agencies able to meet the original July 12, 2005 deadline in order for the bonuses to appear in the July 22, 2005 paycheck may do so.

NOTE: Be sure that Durational Project Manager, Transitional Manager, and Customer Services Program Developer positions filled from outside the classified service and Executive Assistants are NOT counted or paid PARS increases.

I. ELIGIBILITY

1. PARS for fiscal year 2004-2005 is for eligible managers employed on the effective date.

2. Managers who have left state service for any reason prior to the effective date are not eligible to receive a PARS payment.

3. New managers hired between January 1, 2005 and the effective date are not eligible for a 2004-2005 PARS payment or a PARS bonus. They will receive a 1.5% pay increase (phase-in) effective December 23, 2005.

4. Employees who were promoted to manager between January 1, 2005 and the effective date are not eligible for a 2004-2005 PARS payment or a PARS bonus. If they had a previous annual increment date of January, they will receive a 1.5% pay increase effective June 24, 2005 and a 1.5% pay increase effective December 23, 2005. If they had a previous annual increment date of July, they will receive a 3.0% pay increase effective June 24, 2005.

II. INCREASES TO BE BUILT INTO SALARIES

Approved increases may be built into salaries for:

1. Managerial personnel whose salary is below position rate in agencies participating in the PARS program.

Rating Increase
Exceeds Expectations 3.0%
Meets All Expectations 3.0%
Needs Improvement (1st time) 1.5%
Needs Improvement (2nd time) 0%
Unsatisfactory 0%

2. A manager at the maximum of his/her salary group will be eligible for a lump sum payment of 3.0% for performance rated as "Meets or Exceeds Expectations". A performance recognition award may be added to this amount for exceptional performance.

3. Managers on the MP and MD Pay Plans (and certain individuals in the VR Pay Plan) in agencies which have not participated in the PARS program may be eligible for annual increases of 3.0% up to the position rate/maximum of their salary. This increase applies up to position rate for "good" performance. Lump sum payments and bonuses are not available to managers in non-participating agencies.

III. PERFORMANCE RECOGNITION AWARD BONUS PAYMENTS

A. Detailed guidelines contained in the Department of Administrative Services Memorandum dated June 29, 2005 include the following requirements for performance bonuses only available to participating PARS managers:

1. There are no minimum or maximum bonus award amounts. Agencies can determine both the number and size of Performance Recognition Awards bonuses within the agency pool of dollars as long the agency awards bonus pool is not exceeded.

2. Bonus payments are to be made in one lump sum payable on July 22, 2005 or August 5, 2005. 

3. Managers, who transfer from one agency to another during the rating year or prior to payout, receive PARS salary increases and/or lump sum payments from the employing agency at the time of payout. Bonus awards would be paid by the receiving agency.

B. Coding

The same expenditure coding should be used for a bonus payment as that charged for the employee's regular salary.

IV. PAYROLL PROCEDURES

The PARS payments must be entered manually at the proper time as follows:

A. Payment of Built-In Increases

Core-CT has issued separate instructions for how "pay rate change" actions are to be created along with the reason codes to use. Please refer to the memorandum dated June 30, 2005 entitled "Managerial COLA and PARS Increases Effective June 24, 2005."

B. Lump Sum Payments

The portion of a manager's PARS salary increase that will exceed the maximum of their salary range effective June 24, 2005 must be paid as a lump sum.

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

Agencies must use the following codes when entering the lump sum in Core-CT:

Via Time and Labor (Weekly Elapsed Time): Time Reporting Code, XMISA

Via Additional Pay: Earnings Code, MPS 

C. Payment of Bonuses

Supplemental wages will be taxed at 25% in accordance with the 2005 Federal Circular E.

Agencies must use the following codes when entering the Performance Recognition Award bonuses in Core-CT:

Via Time and Labor (Weekly Elapsed Time): Time Reporting Code, XMERA

Via Additional Pay: Earnings Code, MER

V. GENERAL

Questions may be directed to:

PARS Inquires:

Department of Administrative Services, Bureau of Human Resources, PARS Coordinator, 
(860) 713-5042;
Payroll Procedures: Office of the State Comptroller
Payroll Services Division, (860) 702-3463;
Payroll Services Division, (860) 702-3451;

Memorandum Interpretation:

Office of the State Comptroller
Fiscal Policy Division, (860) 702-3440.

 

NANCY WYMAN
STATE COMPTROLLER

NW:CH

 

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