STATE OF CONNECTICUT
	OFFICE OF THE STATE COMPTROLLER
Kevin Lembo State Comptroller	55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	Martha Carlson Deputy Comptroller

MEMORANDUM NO. 2013-18

July 15, 2013

TO THE HEADS OF ALL STATE AGENCIES

I. AUTHORITY
In accordance with Sections 4-40, 5-200(p) and 5-208(a) of the Connecticut General Statutes, the Commissioner of the Department of Administrative Services (DAS) with the approval of the Secretary of the Office of Policy and Management has authorized salary increases for certain Executive Branch executive, managerial and confidential employees excluded from collective bargaining.

Public Act 12-1 ( Dec. Spec. Sess.) eliminates lump sum longevity payments and enables lump sum longevity payments to be incorporated into annual salaries for eligible employees in accordance with Sections 5-213 and 5-213c.

II. INCREASE IN COMPENSATION FOR EXECUTIVE BRANCH EMPLOYEES EXCLUDED FROM COLLECTIVE BARGAINING
Effective July 1, 2013 certain employees excluded from collective bargaining will receive a three percent (3%) cost of living adjustment (COLA). Employees assigned to the following pay plans will receive the COLA:

• MP pay plan in labor units 02 or 03 (including confidential employees assigned to the MP pay plan)
• MD pay plan
• VR pay plan in labor units 02 or 03
• SE pay plan
• DM, CJ or CJ-EX pay plans at the Division of Criminal Justice

A three percent (3%) cost of living adjustment has been authorized for employees assigned to the following job classifications in the EX, MP, and VR pay plans in labor unit 01:

• Assistant State Comptroller
• Chief Human Rights Referee
• Employment Security Board Review Member
• Executive Assistant
• Executive Director Office of Military Affairs
• Human Rights Referee
• Labor Relations Agent
• Liquor Control Commissioner
• Mediator (Board of Mediation and Arbitration)
• Parole Release Panel Member (full-time)
• State Fire Administrator
• Training Academy Administrator of POST

This increase does not apply to unclassified employees of any of the boards of trustees of higher education.

III. EMPLOYEE SALARY ADJUSTMENTS
To be eligible for a salary adjustment effective July 12, 2013, an employee must meet the following requirements:

• The employee must be employed on July 12, 2013 in one of the following job classes or pay plans:
  • Executive Secretary job class in SE pay plan
  • EX, MP, MD pay plans or in a job class with a variable range plan assigned to labor units 01, 02 or 03
  • DM and CJ pay plans in the Division of Criminal Justice
  • Confidential employees assigned to the CA and CR pay plans
• The employee must have been eligible for and received a longevity payment in April 2011.
• The employee must have been eligible for and received a longevity payment in April 2013.

Employees who do not meet all of the eligibility requirements will remain at their current annual salary effective July 12, 2013.

No future lump sum longevity payments shall be made to employees assigned to the pay plans and job classes mentioned above.

IV. CONFIDENTIAL EMPLOYEES ASSIGNED TO THE CA AND CR PAY PLANS
In accordance with DAS Item 1937-E:

• Confidential employees assigned to the CA pay plan will continue to be granted all future cost of living increases, annual increments, and bonuses granted to employees in the Administrative Clerical bargaining unit.
   
• Confidential employees assigned to the CR pay plan will continue to be granted all future cost of living increases, annual increments, and bonuses granted to employees in the Administrative and Residual bargaining unit.

Confidential Employees Assigned to the CA Pay Plan

A. General Wage Increases

Effective on the date (August 26, 2013) that is four pay periods after July 1, 2013, the base annual salary for all employees assigned to the CA pay plan on August 25, 2011 will be increased by three percent (3%). Those employees will also receive a lump sum payment to be made whole for the difference in percentage between the July 2011 increase received, and the wage increase that would have been effective July 2013.

 

Effective July 1, 2014, the base annual salary for all employees will be increased by three percent (3%).

 

Effective July 1, 2015, the base annual salary for all employees will be increased by three percent (3%).

B. Annual Increments and Lump Sum Payments

The lump sum payment will be paid on the paycheck dates when the annual increments are paid in accordance with the above schedule and may be denied for a "less than good" service rating.

 

Employees will continue to be eligible for and receive annual increments during the term of this contract in accordance with existing practice for contract years 2013-2014, 2014-2015, and 2015-2016; except as specifically varied by the contract.

Confidential Employees Assigned to the CR Pay Plan

A. General Wage Increases

General Wage Increases will be effective as follows:

B. Annual Increments and Lump Sum Payments

Employees assigned to the CR pay plan will continue to be eligible for and receive annual increments in accordance with the Administrative and Residual contract except as otherwise provided in the agreement. Employees who are on the maximum step of the salary schedule, who receive no annual increment, shall receive a lump sum payment of two and one-half (2.5%) of their annual rate except as otherwise provided in the agreement. Such payment shall be made on the date when the annual increment would have applied.

V. SCHEDULED PAYMENT DATES

A. Cost of Living Adjustments

B. Salary Adjustments

C. CA Pay Plan General Wage Increase

The general wage increase must be entered manually at the proper time.

D. CA Pay Plan Annual Increments and Lump Sum Payments

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

The agency must also process lump sum manually and follow the effective dates and pay periods of annual increments.

E. CR Pay Plan General Wage Increases

The general wage increase must be entered manually at the proper time.

F. CR Pay Plan Annual Increments and Lump Sum Payments

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

The agency must also process lump sum payments manually and follow the effective dates and pay periods of annual increments.

VI. PAYROLL PROCEDURES

A. Cost of Living Adjustment

New pay plans will be implemented centrally with the new bi-weekly salary.

B. Salary Adjustments Calculation

For an employee meeting all of the requirements, the new annual salary (effective July 12, 2013) is equal to the employee?s current annual salary (effective July 12, 2013) plus two times the exact amount of the April 2013 longevity payment, rounded up to the nearest dollar. The new annual salary is divided by 26.1 and rounded up to the nearest penny to obtain the new bi-weekly salary. For example, if an employee who meets all of the eligibility requirements is earning $80,000 annually and received a $695.25 lump sum longevity payment in April 2013, the new salary will be $80,000 + $1,390.50 ($695.25 x 2) = $81,390.50, rounded up to the nearest dollar: $81,391. To obtain the employee?s new bi-weekly salary divide $81,391 by 26.1 = $3,118.429, rounded up to the nearest penny: $3,118.43. The same calculation is used for eligible employees in full-time and part-time positions. The annualized longevity amount is not affected by movement between job classes between April 1, 2013 and July 12, 2013. If an eligible employee is promoted effective July 12, 2013, the calculation of the promotion will occur first, followed by calculation of the longevity adjustment.

 

For eligible employees assigned to the CA or CR pay plan, after the calculation the employee will need to be placed within their assigned salary grade range in the CA or CR pay plan. Note: The CA, CR, CJ and DM step plans will change to range plans effective July 12, 2013 to accommodate implementation of Public Act 12-1 (Dec. Spec. Sess.).

For employees in the EX, MP, MD pay plans or in a job class with a variable range plan assigned to labor units 01,02, or 03, in rare situations the new annual salary may be over the maximum of the salary range. DAS should be contacted before processing such salary adjustments.

C. Payment of Lump Sum - CA and CR Pay Plans

On the Timesheet Page: Amount; Time Reporting Code XMISP
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).
 

VII. QUESTIONS

Questions may be directed as follows:

 

Department of Administrative Services: HR Business Rules and Central Audit Unit, 860-713-5176 or 860-713-5187;

 

Office of the State Comptroller:

 

Payroll Procedures: Payroll Services Division, 860-702-3447;

 

Core-CT Issues: Payroll Core-CT 860-622-2165;
 

Memorandum Interpretation: Budget and Financial Analysis Division, 860-702-3440.

KEVIN LEMBO
STATE COMPTROLLER

KL:CH

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