State of Connecticut Office of the State Comptroller MEMORANDUM NO. 2006-23
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. 2006-23

July 6, 2006

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Performance Assessment and Recognition System (PARS) Payments

Effective June 23, 2006 wage increases have been authorized for all managers who meet the criteria outlined in DAS Official Memorandum No. 06-02 dated June 19, 2006. Additionally, this document specifies Performance Assessment and Recognition System (PARS) bonuses are effective with the pay period beginning June 23, 2006 (check date July 21, 2006).

NOTE: Only Durational Project Managers, Transitional Managers, and Customer Services Program Developers with prior permanent, classified service in a qualifying job class are eligible for PARS/AI increases. Executive Assistants are NOT eligible for PARS and are not to be counted in an agency's bonus pool. However, Executive Assistants and other Executive employees identified by Item No. 1058-E are authorized to receive a 3% AI.

I. ELIGIBILITY

1. PARS for fiscal year 2005-2006 is for eligible managers employed on the effective date.
 
2. Managers who have left state service for any reason prior to the effective date are not eligible to receive a PARS payment.
 
3. New managers hired between January 1, 2006 and the effective date are not eligible for a 2005-2006 PARS payment or a PARS bonus; however, they will receive a 1.5% pay increase effective December 22, 2006.
 
4. Employees who were promoted to manager between January 1, 2006 and the effective date are not eligible for a 2005-2006 PARS payment or a PARS bonus. If they had a previous annual increment date of January, they will receive a 1.5% pay increase effective June 23, 2006 and a 1.5% pay increase effective December 22, 2006. If they had a previous annual increment date of July, they will receive a 3.0% pay increase effective June 23, 2006.

II. METHOD OF PAYMENT

Approved increases may be built into salaries for:

1. Managerial personnel whose salary is below position rate in agencies participating in the PARS program.
Rating Increase
Exceeds Expectations 3.0%
Meets All Expectations 3.0%
Needs Improvement (1st time) 1.5%
Needs Improvement (2nd time) 0%
Unsatisfactory 0%
2. Managers on the MP and MD Pay Plans (and certain individuals in the VR Pay Plan) in agencies which have not participated in the PARS program may be eligible for annual increases up to the maximum position rate of their salary. (Note: This increase applies up to maximum position rate. Lump sum payments and bonuses are not available to managers in non-participating agencies or to Executive Assistants or other executive employees.
 
Approved increases may be made as a lump sum payment for:
 
3. A manager at the maximum of his/her salary group will be eligible for a lump sum payment of 3.0% of maximum position rate for performance rated as ?Meets or Exceeds Expectations?. A performance recognition award may be added to this amount for exceptional performance.

III. PERFORMANCE RECOGNITION AWARD BONUS PAYMENTS

A. Detailed guidelines contained in the Department of Administrative Services Memorandum dated June 19, 2006 include the following requirements for performance bonuses only available to participating PARS managers:

1. There are no minimum or maximum bonus award amounts. Agencies can determine both the number and size of Performance Recognition Awards bonuses within the agency pool of dollars so long as the agency awards bonus pool is not exceeded. The Commissioner of Administrative Services must approve PARS bonus payments greater than $750 for agencies with only one manager.
 
2. Bonus payments are to be made in one lump sum.
 
3. Managers who transfer from one agency to another during the rating year or prior to payout receive PARS salary increases and/or lump sum payments from the employing agency at the time of payout. Bonus awards are paid by the receiving agency.

B. Coding

The same expenditure coding should be used for a bonus payment as that charged for the employee's regular salary.

IV. PAYROLL PROCEDURES

The PARS payments must be entered manually at the proper time as follows:
 
A. Payment of Built-In Increases
 
DAS has issued instructions for how to process pay rate change actions in Core-CT. Please refer to the FAQs accompanying the DAS memorandum dated June 19, 2006 entitled "Salary Increases for Non-Bargaining Unit Employees in Executive Branch Agencies."
 
B. Lump Sum Payments
 
The portion of a manager's PARS salary increase that will exceed the maximum of their salary range effective June 23, 2006 must be paid as a lump sum.
 
Lump sum payments are subject to mandatory deduction; i.e., federal withholding tax and state income tax annualized, social security tax, retirement contributions and (if applicable) garnishments.
 
Agencies must use the following codes when entering the lump sum in Core-CT:
 
Via Time and Labor (Weekly Elapsed Time): Time Reporting Code, XMISA
 
Via Additional Pay: Earnings Code, MPS

C. Payment of Bonuses
 
Supplemental wages will be taxed at 25% in accordance with the 2006 Federal Circular E.
 
Agencies must use the following codes when entering the Performance Recognition Award bonuses in Core-CT:
 
Via Time and Labor (Weekly Elapsed Time): Time Reporting Code, XMERA
 
Via Additional Pay: Earnings Code, MER

V. GENERAL

Questions may be directed to:
PARS Inquires: Department of Administrative Services, HR Business Rules and Central Audit Unit
Bonus Awards and Program Questions, (860) 713-5042;
Calculations, (860) 713-6164, (860) 713-5033 or (860) 713-5248;
Eligibility Issues, (860) 713-5176 or (860) 713-5187;
 
Payroll Procedures: Office of the State Comptroller
Payroll Services Division, (860) 702-3463;
Payroll Services Division, (860) 702-3451;
Memorandum Interpretation: Office of the State Comptroller
Fiscal Policy Division, (860) 702-3440.

NANCY WYMAN
STATE COMPTROLLER

NW:CH

Return to Index of 2006 Comptroller's Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page