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STATE OF CONNECTICUT |
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NANCY WYMAN
COMPTROLLER |
OFFICE OF
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775 |
MARK OJAKIAN
DEPUTY COMPTROLLER |
MEMORANDUM NO. 2000-50
October 19, 2000
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,
And Interest Penalty for Administrative and Residual(P-5) Bargaining Unit Employees July
1, 1999 through June 30, 2003 |
I. AUTHORITY
- The arbitration award between the State of Connecticut and the Administrative and
Residual (P-5) bargaining unit, for the period July 1, 1999 through June 30, 2003,
was approved by Legislature on June 19, 2000. Due to a legal dispute, the contract had
been held up by the judicial system. On October 3, 2000, the Superior court issued its
decision that the award could be implemented.
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- 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-5 Interest
Arbitration dated April 24, 2000. The 5% is payable for the period April 24, 2000 until
the date an employee receives all the retroactive amounts due him/her under the award.
II. COMPENSATION (Article 24)
- A. General Wage Increases will be effective as follows:
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| Effective Date |
Increase |
| June 18, 1999(Retroactive) |
2% of Base Salary |
| December 31, 1999(Retroactive) |
2% of Base Salary |
| June 30, 2000 (Retroactive) |
3.5% of Base Salary |
| June 29, 2001 |
3% of Base Salary |
| June 28, 2002 |
3% of Base Salary |
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B. Annual Increments
- Employees will continue to be eligible for and receive annual increments during the term
of this contact in accordance with existing practice.
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C. Lump sum Payment for Maximum Step Employees And the Addition of an
Eighth Step
- Effective June 18, 1999, employees at the maximum step of the salary schedule as of the
annual increment effective dates will receive a 2.5 percent lump sum payment when the
annual increment would have applied.
- Effective June 30, 2000, the pay plan is modified by the addition of an additional full
(8th) step, which is 3.0 percent above step 7.
III. RETROACTIVE PAYMENTS
- For the pay periods 06/18/99 through 10/19/00, agency staff must calculate and process
the following retroactive payments manually. Checks dated 11/17/00 should reflect updated
additional compensation; e.g., shift differentials, overtime, etc., for the particular
bi-weekly pay period.
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- 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 General Wage Increase
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| Effective Date |
Salary Increases |
Period Covered |
Check Date |
| June 18, 1999 |
2% of base salary |
06/18/99 - 10/19/00 |
11/17/00 |
| December 31, 1999 |
2% of base salary |
12/31/99 - 10/19/00 |
11/17/00 |
| June 30, 2000 |
3.5% of base salary |
06/30/00 - 10/19/00 |
11/17/00 |
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- B. Retroactive Annual Increments and Lump Sum Payment at Maximum Step
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| Effective Date |
Period Covered |
Check Date |
| July 1, 1999 |
06/18/99 - 10/19/00 |
11/17/00 |
| January 1, 2000 |
12/31/99 - 10/19/00 |
11/17/00 |
| July 1, 2000 |
06/30/00 - 10/19/00 |
11/17/00 |
IV. SCHEDULED PAYMENT DATES
A. Bi-Weekly Salary Payments
| General Wage Increase |
Pay Period |
Check Date |
| 3% of Base Salary |
06/29/01 - 07/12/01 |
07/27/01 |
| 3% of Base Salary |
06/28/02 - 07/11/02 |
07/26/02 |
B. Annual Increments
- Annual Increments will be entered centrally for agencies on the Automated Personnel
System (APS) interface at the proper time as follows:
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| Effective Date |
Pay Period |
Check Date |
| January 1, 2001 |
12/29/00 - 01/11/01 |
01/26/01 |
| July 1, 2001 |
06/29/01 - 07/12/01 |
07/27/01 |
| January 1, 2002 |
12/28/01 - 01/10/02 |
01/25/02 |
All Other Agencies
- All other agencies must manually adjust their employees' masterfile record with the
correct bi-weekly salary amount and rate of pay.
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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 as indicated in Section IV. B.
V. CALCULATION OF INTEREST PENALTY
- Two separate interest penalty calculations must be performed to comply with the
retroactive amounts due on the Arbitrated Award between the State of Connecticut and the
P-5 bargaining unit.
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- A. Retroactive Payments From June 18, 1999 through June 29, 2000
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- 207/360 multiplied by 5% multiplied by the retroactive lump sum payment.
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- Example: If retroactive amount was $1800:
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- 207/360 x 5/100 x $1800/1 = $ 51.75
- Multiply the retroactive lump sum amount paid by the number of days between
- April 24, 2000 and the date of payment of the retroactive amount divided by 360; then
the product multiplied by 5%.
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B. Retroactive Payments From June 30, 2000 through October 19, 2000
- 140/360 multiplied by 5% multiplied by the retroactive lump sum payment.
Example: If retroactive amount was $1800:
140/360 x 5/100 x $1800/1 = $ 35.00
- Multiply the retroactive lump sum amount paid by the number of days between
- June 30, 2000 and the date of payment of the retroactive amount divided by 360; then the
product multiplied by 5%.
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- 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.
VI. 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.
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- A. Payment of Retroactive Salary Increases and Retroactive Annual Increments
(including other earnings if applicable)
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1. On-Line: Screen 047 or 190; R1; Amount; D/OE Code 10.
2. Remote Job Entry: ZT Transaction; Same as above.
- B. Payment of Retroactive Lump Sum(s)
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1. On-Line: Screen 047 or 190; R1; Amount; D/OE Code 10.
2. Remote Job Entry: ZT Transaction; Same as above.
C. Implementation of General Wage Increase and - Agencies with
Automated Personnel System (APS) Interface
- New pay plans will be implemented centrally with the new hourly rate and bi-weekly
salary for the appropriate pay period.
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D. Implementation of General Wage Increase - All Other Agencies
Entering New Salary Amounts on Bi-Weekly Payroll
- 1. On-Line: Screen 160; Change Rate and Salary
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- 2. Remote Job Entry: RA/NA Transaction; Same as above.
E. Payment of Lump Sum(s)
1. On-Line: Screen 047 or 190; R1; Amount; D/OE Code 18.
2. Remote Job Entry: ZT Transaction; Same as above.
F. 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 paid would not be subject to withholding for
income taxes, employment taxes, and retirement contributions.
VII. GENERAL
- Payroll staff should check with their Agency Personnel Officer to ascertain other
possible wage increases. The Department of Administrative Services (DAS), Personnel
Division, will be distributing revised salary schedules.
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- Questions may be directed as follows:
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| Salary Schedules: |
DAS-Personnel Division, 566-3236; |
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| Payroll Procedures: |
Office of the State Comptroller, Payroll Services Division, (860)
702-3463; |
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| Remote Job Entry: |
Office of the State Comptroller, Payroll Services Division, (860)
702-3451; |
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| Memorandum Interpretation: |
Office of the State Comptroller, Policy Services Division, (860)
702-3440; |
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| Contract Issues: |
Agency Personnel Officer. |
NANCY WYMAN
STATE COMPTROLLER
NW:EL
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