MEMORANDUM NO. 99-49
December 8, 1999
TO THE HEADS OF ALL STATE AGENCIES
||Chief Administrative and Fiscal Officers, Business Mangers, and Payroll and
||Additional Compensation from Leave Accrual Balances for Retired or Separated
Managerial and Confidential Employees
- In accordance with the recent Supreme Court Decision - Nagy, Barber et al. v. State
of Connecticut and the Governor, a leave accrual balance increase to certain employees has
- When the State increased the length of the workday from seven to eight hours from 1995
through 1998, the value of leave accrual balances for vacation and sick days was ruled as
having been diminished. Certain retired or separated employees are now eligible to receive
compensation as a result of the recalculation of leave accruals. For separated employees
such compensation is limited to vacation days.
II. ELIGIBLE EMPLOYEES
- Executive branch employees not represented by a bargaining agent, managers (including
all employees assigned to the MP, MD or ME pay plans), confidential employees,and other
non-represented employees who were covered by Management Personnel Policy No. 95-1, and
who retired or separated after July 1, 1995 are eligible. Eligible employees
retiring January 1, 2000 should have their leave balances adjusted to reflect
recalculation of leave accruals before payments are made. Employees who separated
after July 1, 1995 are also eligible. Managerial or confidential employees who were
already on forty-hour schedules prior to July 1, 1995, employees covered by a collective
bargaining agreement, and part-time employees are not eligible.
III. RETIREES AND SEPARATED EMPLOYEES LEAVE ACCRUALS
- Eligible employees who retired must have their vacation and sick leave balances
recalculated based on specific calculations for the period of time they worked. Eligible
employees who separated must have vacation balances recalculated. The recalculation will
determine if they are entitled to additional compensation. The formula for calculating the
additional vacation or sick leave hours can be found in the Office of Policy and
Management General Letter No. 99-12, dated November 10, 1999.
- No additional payment can be made to these individuals for time in excess of the 120-day
vacation limitation (based on the hours in the workday as of date of separation) or in
excess of the one-quarter payment of sick leave to a maximum of 60 days for retirees as
set forth in the statute. Also, the additional vacation leave amount will need to be
reported to the Retirement and Benefit Services Division in the manner detailed 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 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.
IV. CALCULATION OF LUMP SUM
- When recalculating the lump sum, agencies are to calculate to the date of retirement.
Any additional accrued vacation and sick time derived through the recalculation mechanism
should be multiplied by the hourly rate of pay in effect at the time of termination.
V. PAYROLL PROCEDURES
- The lump sums must be entered effective with the pay period January 14, 2000 through
January 27, 2000 (check date February 10, 2000) using D/OE 28 Lump Vacation Pay with
Major-Minor 01-120 and/or D/OE 29 Retiree Sick Pay with a Major-Minor 01-090. The agency
payroll staff must review the Employee's Masterfile to ensure an employee's
eligibility for the adjusted payments.
- The lump sum vacation pay is subject to mandatory deductions: federal withholding and
state income tax annualized, social security tax, retirement contributions and
garnishments (if applicable).
- The lump sum retirement sick pay is subject to federal withholding, state income tax
annualized and social security tax only.
- Note: Please ensure that the proper retirement code designation is utilized as
required by the employee's Retirement Plan Status at retirement or separation.
- Retired and separated employees who were deleted from the masterfile must be set up as
new employees. You must enter a pay code 1, 2 or 3 for these individuals to avoid
generating a regular pay check in the system. In lieu of 301 documentation, a memo must be
submitted to the Comptroller's Payroll Services Division listing the employees added
to the payroll system for the purpose of making this payment.
- Questions may be directed as follows:
- Policy and Procedure: Agency Human Resource Officer;
- Supreme Court Decision Interpretation: Office of Labor Relations, (860) 418-6218;
- Memorandum Interpretation: Office of the State Comptroller, Policy Services
Division, (860) 702-3440;
- Payroll Procedures: Office of the State Comptroller, Payroll Services Division,
- Direct list of affected Retirees and Separated Employees to: Retirement and
Benefit Services Division, AUDIT UNIT, 55 Elm Street, Hartford, Connecticut 06106.
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