STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
March 6, 2009
The Honorable Theresa C. Lantz, Commissioner
Department of Correction
24 Wolcott Hill Road
Wethersfield, CT 06109
||Retroactive Salary Increases, Retroactive Annual Increments and Lump
Sum Payments for Retired and Separated American Federation of State, County and
Municipal Employees (AFSCME) NP-4 bargaining unit
- Interest Arbitration Award for American Federation of State, County and
Municipal Employees (AFSCME) NP-4 bargaining unit for the period July 1, 2008
through June 30, 2011.
II. ELIGIBLE EMPLOYEES
- American Federation of State, County and Municipal Employees (AFSCME) bargaining
unit (NP-4) employees who were actively employed on July 1, 2008 but have since
retired or separated from State service.
III. INSTRUCTIONS TO ACTIVATE RETIRED OR SEPARATED EMPLOYEES
- Core-CT has created a job aid titled "Check List for Retroactive Payments to
Terminated Employees" which is posted on the Core-CT website. Agencies should
refer to this job aid for assistance in rehiring or activating terminated and
retired employees for the purpose of making retroactive payments.
IV. PAYROLL PROCEDURES FOR RETROACTIVE PAYMENTS FOR RETIRED AND SEPARATED
Payroll procedures for processing retroactive payments are contained in the
Interdepartmental Memoranda issued February 11, 2009 and February 20, 2009.
Please refer to these memoranda for retroactive compensation information.
- A. Retroactive General Wage Increases are effective as follows:
|July 4, 2008 (Retroactive)
||3 % of Base Salary
- B. Retroactive Annual Increments and Retroactive Lump Sum Payments for
Maximum Step Employees
- Employees will continue to be eligible for and receive annual increments and
lump sum in July 2008 or January 2009 in accordance with existing practice.
VI. RETROACTIVE PAYMENTS FOR RETIRED AND SEPARATED EMPLOYEES
- When calculating the retroactive payments, calculate to the date of retirement
or separation from state service. For the period July 4, 2008 through date of
separation, agency staff must calculate and process the following retroactive
payments manually. The retroactive payments 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.
- Such payments are subject to mandatory deductions: federal withholding tax
and state income tax annualized, social security tax and retirement
- A. Retroactive General Wage Increase (GWI)
|July 4, 2008
||07/04/08 - date of separation
- B. Retroactive Annual Increments and Retroactive Lump Sum Payment at Maximum
|Annual Increment and
|Lump Sum Date
|July 4, 2008
||07/04/08 - date of separation
|January 1, 2009
||12/19/08 - date of separation
VII. RETIREMENT PROCEDURES
- The additional retroactive compensation must be reported to the Retirement and
Benefit 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 by name, employee number and retirement
date 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.
VIII. CALCULATION OF INTEREST PENALTY
- If payment was made in the check dated February 27, 2009, (refer to memorandum
dated February 20, 2009), no interest is due. If payment is made in a later
check date, an interest penalty of 5% is payable for the period January 5, 2009
until the date the eligible employee receives all retroactive amounts due
him/her under the interest arbitration award.
- • In the example below, the check date of March 27, 2009 is being used.
Agencies must calculate to the actual check date of payment.
- 81 days/360 days multiplied by 5% multiplied by the retroactive lump sum
- Example: If the retroactive amount was $300:
- 81 days /360 days x .05 x $300 = $3.38
- Multiply the retroactive lump sum amount paid by the number of days between
January 5, 2009 and the date of the payment of the retroactive payment March 27,
2009, (which is 81 days) divided by 360, then the product multiplied by 5%.
IX. PAYROLL PROCEDURES FOR INTEREST ARBITRATION AWARD
- On the Additional Pay Page: Amount; Earnings Code INT.
- 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.
X. PAYROLL PROCEDURES
- Payment of Retroactive Salary Increases and Retroactive Annual Increments and
Retroactive Lump Sums.
- On the Additional Pay Page: Amount; Earnings Code RTR.
- Questions may be directed as follows:
- Payroll Procedures:
Office of the State Comptroller Payroll Services Division (860) 702-3463
- Memorandum Interpretation:
Office of the State Comptroller, Fiscal Policy Division (860) 702-3440.
- Direct the list of retirees and separated employees with a copy of the
calculation worksheet to:
Office of the State Comptroller
55 Elm Street
Hartford, CT 06106
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