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. 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.
 
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:
 
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
 

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.
 

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.
 
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
 
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
 
B. Retroactive Annual Increments and Lump Sum Payment at Maximum Step
 
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:
 
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.
 

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.
 
A. Retroactive Payments From June 18, 1999 through June 29, 2000
 
207/360 multiplied by 5% multiplied by the retroactive lump sum payment.
 
Example: If retroactive amount was $1800:
 
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%.
 

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%.
 
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.
 
A. Payment of Retroactive Salary Increases and Retroactive Annual Increments (including other earnings if applicable)
 

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)
 

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.
 

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
 
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.
 
Questions may be directed as follows:
 
Salary Schedules: DAS-Personnel Division, 566-3236;
Payroll Procedures: Office of the State Comptroller, Payroll Services Division, (860) 702-3463;
Remote Job Entry: Office of the State Comptroller, Payroll Services Division, (860) 702-3451;
Memorandum Interpretation: Office of the State Comptroller, Policy Services Division, (860) 702-3440;
Contract Issues: Agency Personnel Officer.

 

NANCY WYMAN

STATE COMPTROLLER

NW:EL

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