STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

INTERDEPARTMENTAL MEMORANDUM

May 31, 2000

I. AUTHORITY

The arbitration award approved on April 26, 2000 between the State of Connecticut and the State Vocational Federation of Teachers bargaining unit provides for the following:

 

A. General Wage Increases (Article 3)

 

General wage increases will be paid on the following effective dates:

 

 

B. Annual Increments

 

Eligible full-time employees will receive an annual increment effective the following dates: August 27, 1999; August 25, 2000; August 24, 2001; and August 23, 2002.

 

C. Trade Instructor Differential (Article 6)

 

The Trade Instructor differential will be $666 for the 2000-2001 school year and $324 for the 2001-2002 school year. The differential payment is eliminated for the 2002-2003 school year.

 

D. Increase for Elimination of Break

 

 

E. Athletic Coordinator, Coaches and Advisors (Appendix B)

 

See contract, Appendix B, for the compensation schedule.

 

 

F. Hourly Rates (Appendix D) - Night School, Summer School or Special Programs

 

 

G. Pursuant to Section 5-276b(a) of the Connecticut General Statutes, an interest penalty of 5% per annum is to be paid for late implementation of the provisions of the Vocational Technical Teachers Arbitration Award dated March 29, 2000.

II. RETROACTIVE PAYMENT SCHEDULE

For the pay period June 2, 2000 through June 15, 2000 (check date June 30, 2000), agency payroll staff must calculate and process the following payments manually.

 

A. Retroactive Salary Increases

 

 

B. Retroactive Annual Increments

 

 

C. Athletic Coordinator, Coaches and Advisors

 

See Appendix B of the contract and apply the 3% increase effective for the start of the 1999-2000 school year.

III. PAYMENT SCHEDULE

A. General Wage Increases

 

 

B. Annual Increments

 

 

C. Trade Instructor Differential

 

 

D. Increase for Elimination of Break

 

IV. CALCULATION OF INTEREST PENALTY

The agency should calculate the interest penalty as follows:

 

92/360 multiplied by 5% multiplied by the retroactive lump sum payment.

 

Example: 92/360 x 5/100 x 1200/1 = $15.33

V. PAYROLL PROCEDURES

A. Retroactive Salary Payments

 

Agency payroll staff must manually calculate the retroactive General Wage Increase, the payment due Athletic Coordinators, Coaches and Advisors (Appendix B), and Annual Increment owed to each employee. The combined payment is to be coded in one transaction as follows:

 

Remote Job Entry: ZT Transaction; R1; Amount; D/OE Code 10.

 

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).

 

B. Implementation of General Wage Increases, Increases for Elimination of Break, Hourly Rate, and Annual Increments

 

Agency payroll staff must change the hourly rate, salary and salary step fields on the appropriate pay period.

 

General Wage Increase:

 

Remote Job Entry: RA/NA Transaction; Change Hourly Rate and Salary.

 

Annual Increments:

 

Remote Job Entry: RA/NA Transaction; Change Hourly Rate, Salary and Salary Step.

 

C. Interest Penalty

 

Interest payments will be identified as INTRST ARB AWD. This interest penalty should be paid in the check dated June 30, 2000 (pay period June 2, 2000 through June 15, 2000) and using D/OE Code 1U and Major-Minor 01-290.

 

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.

 

D. Trade Instructor Differential and Athletic Coordinator, Coaches and Advisors

 

Remote Job Entry: ZT Transaction; R1; Amount; D/OE Code 18.

VI. GENERAL

Please share this information with affected satellite divisions of your Department to ensure all payments are implemented in a timely manner.

 

You may direct requests for assistance as follows:

 

NANCY WYMAN
STATE COMPTROLLER

NW:CH:jrs

Return to Index of Interdepartmental Memoranda
Return to Comptroller's Home Page