State of Connecticut Payroll Manual - Policy Section - SECTION IV- - ANNIVERSARY INCREASES & GENERAL WAGE INCREASE

ANNIVERSARY INCREASES & GENERAL WAGE INCREASE

An anniversary increase date shall be established based on the following contract provisions:
MASTER CONTRACT
1. Employees hired prior to 6/30/77.
  January 1 - for employees hired between October 2, and April 1, inclusive, following completion of nine full months of paid employment.
  
  July 1 - for employees hired between April 2, and October 1, inclusive following completion of nine full months of paid employment.
2. Employees hired July 1, 1977, or after:
  January 1 - all employees.
  
  Employees hired between January 1 and June 30 will have the first increment due the first January following the date of initial employment. Employees hired between July 1 and December 31 will have the first increment due the second January following date of initial employment.
PROTECTIVE SERVICES

Same as Master Contract.

STATE POLICE AND CORRECTIONS

Same as regulation for employees hired prior to June 30, 1977 under the Master Contract.
When the first working day of April or October is a date other than the first calendar day of the month because of a Saturday, Sunday or a holiday, an employee starting employment on the first working day shall be deemed to have started on April 1 or
October 1.
Once an employee's anniversary increase date has been established as either January 1 or July 1, it will remain unchanged.
1. Leaves of absence without pay, promotions, transfers to other agencies, periods of suspension, or changes in rate of pay or salary group shall not change an established anniversary date.
2. If an employee with an established anniversary date resigns from state service and is subsequently re-employed from a re-employment list and no new working test period is required, the employee shall retain their previously established anniversary date.
Annual salary increases shall become effective on the first day of the payroll period which includes the anniversary date as established above.
No employee shall receive such annual salary increase if a service rating less than "good" has been filed with the Personnel Commissioner by the employee's appointing authority during any part of the twelve-month period immediately preceding the employee's anniversary date.
Managers and Executives have their increases given on July 1. Most managers are covered by a managerial incentive plan instead of an annual increase. For more information on the Management Incentive Plan or the Professional Incentive Plan (MIP/PIP) see the MIP Handbook.
An employee who is promoted from one salary group to another receives an increase of at least one annual increment in the new salary group. Since the managerial salary plan has no steps, managers receive a 5% increase.

GENERAL WAGE INCREASES

Collective Bargaining contracts provide for general wage increases to employees' base annual salary. These are usually effective near the beginning of the fiscal year, in July. General wage increases for those not covered by a bargaining unit contract customarily also take effect near the beginning of the fiscal year.

LONGEVITY PAY

ELIGIBILITY REQUIREMENTS

Employees who have completed the equivalent of ten years of full-time state service receive semi-annual lump sum longevity payments based on service completed as of April 1 and October 1 of each year. (For most bargaining unit employees hired after 7/1/77 this service must be CONTINUOUS state service. If a break in service occurs, but is less than a year in duration, credit for prior state service is restored. Consult the appropriate contract).

Certain periods of military service may be credited toward meeting the ten-year threshold for longevity payments. Dates of eligibility are listed below:

DESERT STORM	8/02/90 - NO END DATE
VIETNAM	1/01/64 - 7/01/75
KOREAN HOSTILITIES	6/27/50 - 1/31/55
WORLD WAR II	12/07/41 - 12/31/47

To receive longevity credit for military service, employees should present a copy of discharge papers or forms DD214 to the agency personnel unit.

PAYMENTS

PAYMENT SCHEDULE
The semi-annual longevity payments shall be made on the last regular payday in April and October of each year, except that a retired employee shall receive, in the month immediately following retirement, a prorated payment based on the proportion of the six-month period served prior to the effective date of their retirement.

AMOUNTS

The amount of longevity payment for classified employees is determined by salary group and years of service. The higher the salary group, the larger the longevity payment. Increases in the amount are scheduled for the 15th, 20th, and 25th full year of state service. Classified employees covered by a collective bargaining agreement should refer to their agreements for their appropriate longevity schedule.

Managers have a longevity scale published each year with the latest MP pay plan. Manager's longevity payments will be made according to the following schedule (Section 5-213(a) of the Connecticut General Statutes).

YEARS QUALIFYING SERVICE (SEE SECTION II)	LONGEVITY PAYMENT AUTHORIZED

10 or more, but less than 15	$75 or an amount determined in accordance with the longevity rate schedule established for their class of position whichever is greater.

15 or more, but less than 20	$150 or an amount determined in accordance with the longevity rate schedule established for their class of position, whichever is greater.

20 or more, but less than 25	$225 or an amount determined in accordance with the longevity rate schedule established for their class of position whichever is greater.

25 or more	$300 or an amount determined in accordance with the longevity rate schedule established for their class of position, whichever is greater .

PAYROLL - See Payroll Procedures Manual - Chapter 5
OVERTIME AND SHIFT DIFFERENTIAL PAY
1. Overtime Pay - the standard workweek of all state employees is thirty-five hours in five days. Any state employee who performs work authorized by their appointing authority for a period in addition to the hours of the employee's regular established workweek or the standard workweek, whichever may contain fewer hours, shall receive compensation as follows:
  1. For that portion of such additional time worked, which when added to the employee's regular established workweek or the standard workweek, whichever may contain fewer hours, does not exceed forty hours, the employee shall be compensated at an hourly rate based on their annual salary;
  2. For that portion of such additional time worked, which when added to the employee's regular, established workweek or the standard workweek, whichever may contain fewer hours, exceeds forty hours, the employee shall be compensated at a rate equal to one and one-half times an hourly rate based on their annual salary.
2. Any employee whose position is subject to the Federal Fair Labor Standards Act shall receive any additional compensation for overtime which may be required by the provisions of said act.
3. Shift Differential Pay - Collective Bargaining Contracts provide for shift differential pay for certain positions. PLEASE SEE EACH INDIVIDUAL CONTRACT FOR RATE OF PAY.
VACATION AND PERSONAL LEAVE DAYS
(SECTION 5-250-1 AND SECTION 5-250-1 OF THE GENERAL STATUTES)
1. Vacation leave with pay shall be granted to each full-time employee in a permanent position in state service following six months of continuous employment. Vacation leave shall be credited to an eligible full-time employee at the rate of one and one-quarter work days of vacation leave for each complete month of continuous service. An eligible employee employed on less than a full-time workweek basis shall earn leave for continuous service prorated in proportion to the amount of time actually worked as recorded in the attendance and leave records, in comparison with the full-time workweek. Each such employee who has completed twenty years of service shall be entitled to one day or seven additional working hours for each additional year up to twenty-five years of service and each such employee with twenty-five more years of service shall be entitled to not more than twenty days or one hundred forty hours vacation, subject to regulations issued by the commissioner of administrative services. The commissioner of administrative services may adopt regulations, in accordance with provision of chapter 54, concerning the accrual, prorating and granting of vacation leave with pay as required. Computation of such vacation leave may be made on an hourly basis. Hourly computation of vacation leave shall not diminish benefit entitlement.
  An appointing authority may permit a full-time permanent employee in the state service to accumulate vacation days with pay up to a maximum of one hundred twenty vacation days, subject to regulations issued by the commissioner of administrative services.
  
  In addition to annual vacation, each appointing authority shall grant to each full-time permanent employee in the state service three days of personal leave of absence with pay in each calendar year. Personal leave of absence shall be for the purpose of conducting private affairs, including observance of religious holidays, and shall not be deducted from vacation or sick leave credits. Personal leave of absence days not taken in a calendar year shall not be accumulated.
  
  Vacation accruals earned by employee in the unclassified service, in accordance with administrative practice or internal departmental policy, which accrual practice or policy was included, by the appointing authority, in the terms of employment on the basis of which such employees were employed prior to July 1, 1972, and which accruals to the credit of such employees for use as vacation time or for payment as provided in Section 5-252, as the case may be.
HOLIDAY PAY
1. Section 2-254 of the Connecticut General Statues provides that each full-time permanent employee in the state service shall be granted time off with pay for any legal holiday. If a legal holiday falls on a Saturday, employees shall be granted equivalent time off on the Friday immediately preceding such Saturday or given another day off in lieu thereof. The commissioner of administrative services may issue regulations governing the granting of holiday time to their employees in the state service, which regulations shall be approved by the secretary of the office of policy and management.
2. Any employee in the state service compensated on an hourly or per diem basis shall be entitled to time off with pay commensurate with any time granted by order of the governor to salaried employees with pay.
3. No state employee whose duties are not directly concerned with the business of the general assembly shall be required to work any legal holiday solely by reason of the convening of the general assembly on such day.

LUMP SUM PAYMENT FOR ACCRUED VACATION TIME

LUMP SUM PAY. Any employee leaving state service shall receive a lump sum payment for all vacation time accrued to their credit and unused on the date of separation, as provided in rules and regulations promulgated and to be promulgated by the Personnel Policy Board.
Employees in the unclassified service who were employed prior to July 1, 1972, and whose appointing authority had included vacation accruals as a term of employment, can be paid for their accrued vacation time providing that such accruals can be verified by written attendance records.
AUTHORITY. Section 5-252 of the Connecticut General Statutes, as amended, governs the payment of this benefit.
PERSONAL LEAVE DAYS AND EARNED TIME. Personal leave days and earned time not taken when an employee leaves state service shall not be included in computations for lump sum payments for accrued and unused vacation time.
PAYMENT PROCEDURES (REFER TO CHAPTER 5 IN THE MSA ON-LINE
MANUAL).
ON RESIGNATION OF EMPLOYEE. Payment of the lump sum amount due for accrued and unused vacation time on leaving state employment will be made on the same payroll on which the employee receives their last regular pay. It will be subject to withholding taxes, social security, retirement deductions and wage executions. The amount paid shall be equal to the daily rate based on the employee's salary on the termination date entered on the "Payroll Notice" form COP-6, times the number of days accrued to their credit and unused on the date the employee left state service.
ON RETIREMENT OF AN EMPLOYEE.
1. PAYMENT PROCEDURE. Payment of the lump sum amount due for accrued and unused vacation time to an employee's credit on the date of their retirement will be made on the same payroll on which the employee gets their last regular pay. This will be subject to the mandatory deductions, i.e., Withholding Tax, Social Security, Retirement and wage executions. The total salary so paid, both regular and accrued vacation pay, is includable in salary earned for retirement benefit computation purposes.
2. REPORT REQUIRED. Inasmuch as the lump sum payment for accrued and unused vacation time is includable in salary earned for retirement benefit computation purposes, the employee and the agency they work for must report to the Comptroller's Retirement Division, the number of accrued and unused vacation days the employee will seek payment for, the daily rate and the total pay expected on the form provided for this purpose to accompany the retirement application, either form CO-898 "APPLICATION FOR RETIREMENT", or form CO-649, "APPLICATION FOR DISABILITY RETIREMENT". If an employee had no accrued vacation time due, they should so state on the form. After the employee has reported to the Retirement Division the total number of vacation days they will have to their credit on the date of retirement, the employee must make certain that the actual days accrued on the retirement date agree with the days previously reported to the Retirement Division.
  Failure to report accrued vacation time, or the fact that none was accrued, and any discrepancies between the accrued vacation pay on the payroll and that reported earlier to the Retirement Division may cause a delay in processing the first pension check of the employee concerned.

DEDUCTIONS FROM ACCRUED VACATION PAY. Payments for accrued vacation time upon leaving State service will be subject to the following deductions:

		Withholding Tax (State/Federal)	Social Security	Retirement	Wage Execution

a.	Resignation	YES	YES	YES	YES

b.	Retirement	YES	YES	YES	YES

c.	Death	EXEMPT	YES	YES	NO

CODING. The amount of the accrued and unused vacation time paid to an employee on leaving state service will be charged to the same salary account to which their regular salary was charged while they were regularly employed.

This applies only to the expenditure coding through Special Identification, the character-object (major-minor) must be 1-12, Accrued Vacation at Termination.

e.g.:


a.	while employee is working:
Fund	Agency	Special Ident.	Function	Activity	Major	Minor
0000	1202	001	00	00	1	1

b.	Upon payment of accrued vacation at termination
Fund	Agency	Special Ident.	Function	Activity	Major	Minor
000	1202	001	00	00	1	12

c.	While employee is working on a Federal Grant
Fund	Agency	Special Ident.	Function	Activity	Major	Minor
0000	7000	901	01	00	1	1

d.	Upon payment of accrued vacation at termination under the grant
Fund	Agency	Special Ident.	Function	Activity	Major	Minor
0000	7000	901	01	00	1	12

INVOLUNTARY SEPARATION. If an employee is dismissed or resigns not in good standing, payment is to be made for all vacation accrual outstanding to their credit as of the date of dismissal or resignation.

COMPENSATION FOR ACCRUED SICK LEAVE AT RETIREMENT

AUTHORITY
Section 5-247(a) of the Connecticut General Statutes provides that, "....each such employee who retires under the provisions of Chapter 66 shall be compensated, effective as of the date of their retirement, at the rate of one-fourth of such employee's salary for sick leave accrued to their credit as of their last day on active payroll up to a maximum payment equivalent to sixty days' or four hundred twenty hours' pay."
ELIGIBILITY
This compensation is restricted to state employees who are retiring under the provisions of the State Employees Retirement Act, Chapter 66 of the Connecticut General Statutes, unless otherwise specified by collective bargaining. Managerial employees, confidential employees and appointed officials fall under the provisions of Chapter 66 and would therefore be eligible. Those leaving state service but not retiring, those retiring under other provisions, and individuals whose salary is set by statute, are not eligible.

NOTE: Managerial, confidential and appointed officials and most collective bargaining agreements provide for accrued sick leave at death payments for those deceased employees with ten (10) years of state service. Their beneficiary is entitled to one- fourth accrued sick leave days' payment up to a maximum of sixty (60) days' pay.
TAXABILITY
1. Normal Federal and Connecticut state tax deducted.
2. Social Security deducted.
3. No Retirement deduction to be taken.
4. No other deductions to be taken.
PAYROLL PROCEDURES - REFER TO MSA PROCEDURES MANUAL - CHAPTER 5

SALARY PAYMENTS AT TIME OF DEATH
(SEC. 5-253 OF THE CONNECTICUT GENERAL STATUTES)

AUTHORITY - Section 5-253 of the Connecticut General Statutes applies under the terms of which payment for extra hours of work and accumulated vacation allowance is made, upon the death of the employee, to the surviving beneficiary as lawfully designated by the employee under the State Employees' Retirement System; if there is no beneficiary listed or if the employee is not a member of the State Employee's Retirement System, to the estate of the deceased.
Additionally, managerial, confidential and appointed officials are eligible for, and most collective bargaining agreements provide for, accrued sick leave payments at death for those deceased employees with ten (10) years of state service.
NOTIFICATION AND DETERMINATION OF PAYEE - Agencies shall report the death of an employee to the Office of the State Comptroller, immediately, using "Notice of Death of State Employee", form CO-638, Rev. 6/88, or later, only. If the employee was a member of the State Employees' Retirement System request should be made for the name of beneficiary designated on the employee's "Designation of Retirement System-Tier-Plan-Beneficiary", form CO-931.
1. A form CO-638 is to be prepared as follows:
  1. Please print or type.
  2. Forward one copy to the Retirement Division.
  3. If employee:
    1. has a group life insurance deduction; or
    2. was 65 years or over and had Medicare Part B; or
    3. has a reduction for a Deferred Compensation Plan,
      transmit one copy of the CO-638 per program to the Office of the State Comptroller, Special Services Division.
  4. If the employee had a deduction for Savings Bonds, forward an extra copy of the CO-638 to the Office of the State Comptroller, Central Payroll Division.
    NOTE: This means a maximum of five (5) copies to prepare in the event that the employee who died was over 65 and has Medicare Part B, Group Life Insurance, a Savings Bond deduction and Deferred Compensation.
2. Determination of payee:
  1. If the employee has lawfully designated a beneficiary under the State Employees' Retirement System, two copies of form CO-536, Claim for Payment Due Deceased Employee, (see exhibit) shall be provided the beneficiary. When the beneficiary returns the forms, properly executed, payment shall then be made to the beneficiary. If there is more than one beneficiary, separate forms are necessary for each.
  2. If there is no lawfully designated beneficiary, two copies of form CO-536 shall be completed (by the agency) so indicating, and signed by the appointing authority. Payment shall be made to the estate of the deceased. The original copy of the CO-536 should be submitted to the Comptroller's Central Payroll Division. The duplicate copy of the CO-536 should be retained by the agency.
  3. If there is more than one beneficiary for these payments, the payments shall be apportioned as lawfully designated by the employee under the State Employees' Retirement System.
COMPUTATION OF PAYMENT
1. SALARY THROUGH DATE OF DEATH - If the employee worked the full pay period, the full gross salary shall be used. If the employee worked less than the full pay period, computation shall be made at the daily rate. If death occurred on a work day, payment shall be made for the full day. Any shift differential pay, overtime pay, stand-by pay, or semi-annual lump-sum longevity pay shall be included in this payment. That portion of the extra hours of work, when added to the employee's regular established work week does not exceed 40 hours, shall be computed at the hourly rate. When that portion of the extra hours of work, added to the employee's regular established work week exceed 40 hours, this shall be computed at one and one-half times the hourly rate. Eligibility for semi-annual lump-sum longevity payment shall be based on the projection of the final calendar day for which the employee would be eligible to receive pay had they remained alive and been permitted to continue on the payroll as explained in paragraph 3C. The semi-annual lump-sum longevity payment shall be included only if the projection includes the first day of April or the first day of October, and only to those dates (not pro-rated).
2. EQUIVALENT TIME OFF DUE THE EMPLOYEE FOR AUTHORIZED EXTRA HOURS OF WORK, IN ACCORDANCE WITH EXISTING PERSONNEL REGULATIONS - (This applies only to employees who worked on holidays or days off granted by the Governor's proclamation).
3. ACCUMULATED VACATION ALLOWANCE - First, the vacation time accrued and unused at a time of death will be projected to determine the final calendar day for which the employee would be eligible to receive pay, had the employee remained alive and been permitted to continue on the payroll until accrued vacation time had been fully paid for.
  Second, determine if, in that time period, the employee would have been eligible for a salary modification, annual increment or other such change in the base salary. Determine the daily rate based on each salary rate the employee was eligible for during that time.
  
  Third, the lump sum due for the accrued vacation days will then be calculated by multiplying each rate determined above by the number of accrued vacation days the employee was eligible for at each such rate and adding together the resultant products.
ACCUMULATED SICK LEAVE - For managerial, confidential and appointed officials and those employees covered by certain collective bargaining agreements, provision has been made for payment for accrued sick leave at death for those deceased employees with ten (10) years of state service.
Their beneficiary is entitled to one-fourth (1/4) of the deceased employee's daily salary for each day of sick leave accrued to the employee's credit up to a maximum payment of sixty (60) days' pay.
PERSONAL LEAVE DAYS - Personal leave days unused are not to be included.

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