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

INTERDEPARTMENTAL MEMORANDUM

March 31, 2004

The Honorable Theresa C. Lantz, Commissioner
Department of Correction
24 Wolcott Hill Road
Wethersfield, Connecticut 06109 

I. AUTHORITY

The interest arbitration award between the State of Connecticut and the Connecticut State Employees Association (CSEA) NP-8 bargaining unit for the period December 3, 2001 through June 30, 2005 was ratified by the Legislature on March 8, 2004.

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 NP-8 Interest Arbitration issued May 2, 2003. The 5% is payable for the period May 2, 2003 until the date an employee receives all the retroactive amounts due him/her under the award.

II. COMPENSATION

A. General Wage Increases

General Wage Increases will be effective as follows:

B. Annual Increments

An employee's annual increment date will be the date that an employee receives a salary advancement in the salary range. The value of the salary advancement in the salary range on the employee's annual increment or anniversary date will be three percent (3%).

All employees who become members of the bargaining unit after December 3, 2001 will keep the annual increment date they had while a member of the Correctional bargaining unit (NP-4).

For the second year of the agreement (2002-2003) annual increments will be delayed six months and paid accordingly in the pay periods which include January 1, 2003 or July 1, 2003. For the third year of the agreement (2003-2004) annual increments will be on time and paid accordingly in the pay periods which include July 1, 2003 or January 1, 2004. For the fourth year of the agreement (2004-2005) annual increments will be delayed and paid accordingly in the pay periods which include October 1, 2004 or April 1, 2005.

C. Longevity

Employees will be eligible for longevity payments for the life of this contract commencing with Fiscal Year 2001-2002.

D. Lump Sum Payment for Maximum Step Employees

Effective June 28, 2002 and thereafter, those employees at the maximum rate of the salary schedule and those employees who will exceed the maximum rate of the salary schedule because of the receipt of an annual increment, will receive a salary adjustment, which exceeds the salary maximum, in the form of a lump sum payment. Lump sum payments will be effective on the employee's annual increment or anniversary date. The value of the lump sum payment will be two and one half percent (2.5%) of the employee's annual salary.

For the second year of this agreement (2002-2003) the 2.5% lump sum payment to employees at the maximum step will be delayed six months. For the third year of this agreement (2003-2004) the 2.5% lump sum payment to employees at the maximum step will be paid on time. For the fourth year of this agreement (2004-2005) the 2.5% lump sum payment to employees at the maximum step will be delayed three months.

E. Night Shift Differential

All employees whose assigned work shift begins anytime after 2:00 p.m. and before 6 a.m.will be eligible to receive shift differential. Night shift differential is $.75 cents per hour effective March 19, 2004. Shift differential will only be paid when an employee is actually working.

Those employees who are drafted for an overtime assignment will continue to receive the night shift differential of $.75 cents per hour.

F. Weekend Differential

Weekend is defined as beginning with the start of the third shift on Friday and terminating with the end of the second shift on Sunday. Weekend differential will be paid for working a minimum of six hours on a shift as defined above.

Weekend differential will be $.50 cents per hour effective March 19, 2004. The weekend differential will only be paid when an employee is actually working.

Those employees who are drafted for an overtime assignment will continue to receive a weekend differential of $.50 cents per hour.

G. Hours of Work - On-Call Pay

Employees who are required by the appointing authority to be "on standby" or "on call" in order to ensure "after hours" coverage must receive a written notification of this status. Pay for such status will be $1.00 per hour for all days on-call except for holidays. Holiday on-call payment will be $2.50 per hour.

H. Hours of Work - Call Back

Call Back - Definition:

Employees who have left work after their regularly scheduled shift and are called back to work.

Employees called back to duty after the completion of a regular shift will receive a minimum of four hours pay at the applicable overtime rate. This provision does not apply to employees who are called in prior to their regular starting time and work through a regular shift.

I. Facility Meal Reimbursement

The meal reimbursement rate will be $6.00 for each shift actually worked. Effective July 11, 2003, the meal reimbursement rate will be $7.00.

J. Equipment and Clothing

The Department shall issue to all employees standard uniforms and all necessary equipment to carry out the performance of duties.

K. Reimbursement for Commercial Drivers License

The state shall reimburse employees who are required to hold Commercial Drivers licenses for purposes of employment with the Department of Correction.

III. TUITION REIMBURSEMENT

The State will allocate for tuition reimbursement each fiscal year the following:

Funds that are unexpended in one fiscal year will carry over into the next fiscal year provided however that the tuition reimbursement fund will expire on June 30, 2005.

Applications for tuition reimbursement that are submitted and approved within the final six months of the contract may be paid with any remaining available funds, up to three months following the expiration of the contract.

The maximum reimbursement for credit courses at accredited institutions will be 75% of the per credit rate for undergraduate and graduate courses at the University of Connecticut at Storrs. For other courses or programs, maximum tuition reimbursement is 50% of the per credit rate for undergraduate and graduate courses at the University of Connecticut at Storrs.

IV. TRAINING - WORKSHOP AND CONFERENCE FUND

The State will allocate for attendance by NP-8 employees at the workshops or conferences the following:

Funds that are unexpended in one fiscal year will carry over into the next fiscal year provided, however, that the fund will expire on June 30, 2005.

Each eligible employee will be entitled to a maximum of $500 reimbursement per contract year toward the cost of fees, travel, food and/or lodging related to attendance at such events. Reimbursement will be consistent with standard state travel regulations.

V. TRAVEL

Any employee who is required to travel on official State business will be reimbursed for lodging, mileage and/or meals in accordance with the terms outlined in the Standard State Travel Regulations, in existence on November 29, 2001, subject to such modifications and exceptions as provided in the contract.

An employee will only use his/her own vehicle in extraordinary circumstances when mileage payments have been authorized. 

Effective July 1, 2002, an employee who is required to travel on employer business will be reimbursed for meals at the following rates:

*Applicable to out-of-state travel or when authorized in accordance with the Standard State Travel Regulations issued by the Commissioner of Administrative Services.

An employee who is required to remain away from home overnight in order to perform the regular duties of his/her position may be reimbursed for lodging expenses in accordance with the Standard State Travel Regulations issued by the Commissioner of Administrative Services.

The mileage reimbursement rate shall be the GSA rate, currently 37.5 cents per mile. Such rate will be readjusted within 30 days of any adjustment by the U. S. General Services Administration.

VI. RETROACTIVE PAYMENTS 

For the period June 28, 2002 through April 15, 2004, agency staff must calculate any retroactive payments. Checks dated April 30, 2004 should reflect updated additional compensation; e.g., shift differentials, overtime, etc., for the particular bi-weekly pay periods.

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

B. Retroactive Annual Increments and Maximum Step Lump Sums

VII. SCHEDULED PAYMENT DATES

A. General Wage Increase

The general wage increase will be made centrally at the proper time. Agency staff must review the Salary Change Mass Update by Plan/Pay Group Report and the Inactive and Transferred Employees Report.

B. Annual Increments

Annual increments will be entered centrally at the proper time as follows:

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.

VIII. CALCULATION OF INTEREST PENALTY

An interest penalty of 5% is payable for the period May 2, 2003 until the date the eligible employee receives all the retroactive amounts due him/her under the arbitration award.

It is possible that one or more wage increases were due before the award was issued and another wage increase was due after the award was issued. Therefore, the amounts due will have to be split out and the number of days for which interest should be paid will need to be calculated individually.

1. Retroactive Payments effective June 28, 2002 and January 1, 2003

364 days/360 days multiplied by 5% multiplied by the lump sum payment.

Example: If the employee was owed $300:

 

364 days/360 days x .05 x $300 = $15.17

Multiply the lump sum amount paid by the number of days between May 2, 2003 and the date of the payment, April 30, 2004 (which is 364 days) divided by 360; then the product multiplied by 5%.

2. Retroactive Payments effective June 27, 2003 and July 1, 2003

309 days/360 days multiplied by 5% multiplied by the lump sum payment.

Example: If the employee was owed $100:

 

309 days/360 days x .05 x $100 = $4.29

Multiply the lump sum amount paid by the number of days between June 27, 2003 and the date of the payment, April 30, 2004 (which is 309 days) divided by 360, then the product multiplied by 5%.

3. Retroactive Payments effective January 1, 2004

121 days/360 days multiplied by 5% multiplied by the lump sum payment.

Example: If the employee was owed $100:

 

121 days/360 days x .05 x $100 = $1.68

Multiply the lump sum amount paid by the number of days between December 26, 2003 and the date of the payment, April 30, 2004 (which is 121 days) 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.

IX. PAYROLL PROCEDURES

A. Payment of Retroactive Salary Increases and Retroactive Annual Increments and Retroactive Lump Sums

On the Weekly Elapsed Time Page: Amount; Time Reporting Code XRTRA

 

On the Additional Pay Page: Amount; Earnings Code RTR

B. Implementation of General Wage Increase

New pay plans will be implemented centrally with the new hourly rate and bi-weekly salary effective with the pay period, at the proper time.

C. Payment of Lump Sum(s)

On the Weekly Elapsed Time Page: Amount; Time Reporting Code XMISA

On the Additional Pay Page: Amount; Earnings Code MPS

These lump sum payments are subject to mandatory deductions; i.e., federal

Withholding and state income tax annualized, social security tax, retirement contributions, and garnishments (if applicable).

D. Interest Arbitration Award

On the Weekly Elapsed Time Page: Amount; Time Reporting Code XINTA

 

On the Additional Pay Page: Amount; Earnings Code INT

 

Agencies should use Account 50740, Interest Penalty - Payroll Awards as the expenditure account code.

 

Interest paid on a wage award is not considered wages (IRS Revenue Ruling 72-268). Therefore, the subject interest penalty would not be subject to withholding for income taxes, employment taxes, and retirement contributions.

E. Shift Differentials

On the Weekly Elapsed time Page: Hours; Shift 1; Account 50180 or

 

 Hours; Shift 2 (Time and a Half); Account 50180 or Amount; Shift 3; Account 50180.

 

On the Additional Pay Page: Amount; Earnings Code SD1 (Shift1); Account 50180 or

 

Amount; Earnings Code SD2 (Shift 2); Account 50180 or

 

Amount; Earnings Code SD3 (Shift 3); Account 50180

 

Applicable changes will be made centrally at proper time.

F. On-Call Pay

On the Weekly Elapsed Time Page: Amount; Time Reporting Code XOCXA

 

On the Additional Pay Page: Amount; Earnings Code OCA

 G. Call Back

On the Weekly Elapsed Time: Units: Time Reporting Code XCBPH

X. PROCESSING OF TUITION REIMBURSEMENTS - UNION FUNDS

All pre-approved tuition reimbursement requests should be forwarded to the Comptroller's Policy Services Division - Tuition Unit for processing. All non-reportable tuition reimbursements must be submitted on an approved Application for Tuition Reimbursement, PERT-1 Form. All reportable tuition reimbursements must be submitted on the CO-17XP-PR, Employee Payroll Reimbursement Form, and a PERT-1 Form must also be completed and attached. Enter coding information, Department Number OSC15958.

Please refer to Memorandum No. 2003-27 dated June 27, 2003 and Memorandum No. 2003-47 dated October 15, 2003 for additional procedures.

XI. PROCESSING OF TRAVEL REIMBURSEMENTS/CODING/UNION FUNDS

Agencies must now use the following procedures when processing travel reimbursements.

1. Prior to travel, the employee must complete the Travel Authorization Form (CO-112) and submit it for approval by the employee's supervisor and the agency head. The CO-112 will be forwarded to an authorizing person within the agency for processing. Prior Union approval must be obtained and must accompany the CO-112.

2. The authorized CO-112 and back-up documentation must be sent to the Office of the State Comptroller, Management Services Division, 2nd Floor, Room 219, for review and approval. The agency will receive a copy once approved.

3. Enter coding information, Department Number OSC15957.

Please refer to Memorandum No. 2004-05 dated January 30, 2004 for additional procedures.

Note: Reimbursements for tuition or travel cannot be made until the release of funding by the Office of Policy and Management. In the past, this funding was not made available to coincide with the implementation date of the contract provision. Please expect delays in reimbursements at the beginning of contract years.

XII. GENERAL

Questions may be directed as follows:

Payroll Procedures: Office of the State Comptroller, Payroll Services Division, (860) 702-3463;

Contract Issues: Agency Personnel Officers; 

Tuition Reimbursement: Office of the State Comptroller, Policy Services Division, (860) 702-3344; 

Memorandum Interpretation: Office of the State Comptroller, Policy Services Division, (860) 702-3440.

NANCY WYMAN
STATE COMPTROLLER

NW:CG

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