State of Connecticut Office of the State Comptroller MEMORANDUM NO. 99-49

The Seal of the Office of the State Comptroller


December 8, 1999


Attention: Chief Administrative and Fiscal Officers, Business Mangers, and Payroll and Personnel Officers
Subject: Additional Compensation from Leave Accrual Balances for Retired or Separated Managerial and Confidential Employees


In accordance with the recent Supreme Court Decision - Nagy, Barber et al. v. State of Connecticut and the Governor, a leave accrual balance increase to certain employees has been granted.
When the State increased the length of the workday from seven to eight hours from 1995 through 1998, the value of leave accrual balances for vacation and sick days was ruled as having been diminished. Certain retired or separated employees are now eligible to receive compensation as a result of the recalculation of leave accruals. For separated employees such compensation is limited to vacation days.


Executive branch employees not represented by a bargaining agent, managers (including all employees assigned to the MP, MD or ME pay plans), confidential employees,and other non-represented employees who were covered by Management Personnel Policy No. 95-1, and who retired or separated after July 1, 1995 are eligible. Eligible employees retiring January 1, 2000 should have their leave balances adjusted to reflect recalculation of leave accruals before payments are made. Employees who separated after July 1, 1995 are also eligible. Managerial or confidential employees who were already on forty-hour schedules prior to July 1, 1995, employees covered by a collective bargaining agreement, and part-time employees are not eligible.


Eligible employees who retired must have their vacation and sick leave balances recalculated based on specific calculations for the period of time they worked. Eligible employees who separated must have vacation balances recalculated. The recalculation will determine if they are entitled to additional compensation. The formula for calculating the additional vacation or sick leave hours can be found in the Office of Policy and Management General Letter No. 99-12, dated November 10, 1999.
No additional payment can be made to these individuals for time in excess of the 120-day vacation limitation (based on the hours in the workday as of date of separation) or in excess of the one-quarter payment of sick leave to a maximum of 60 days for retirees as set forth in the statute. Also, the additional vacation leave amount will need to be reported to the Retirement and Benefit Services Division in the manner detailed below as such additional payments may have an impact for retirement benefit purposes.
Each agency must provide the Retirement and Benefit Services Division's Audit Unit with a list of affected retirees accompanied by the worksheet detailing the calculations utilized for these adjustment payments. Worksheets for separated employees must also be provided with a clear notation on each worksheet indicating such status.


When recalculating the lump sum, agencies are to calculate to the date of retirement. Any additional accrued vacation and sick time derived through the recalculation mechanism should be multiplied by the hourly rate of pay in effect at the time of termination.


The lump sums must be entered effective with the pay period January 14, 2000 through January 27, 2000 (check date February 10, 2000) using D/OE 28 Lump Vacation Pay with Major-Minor 01-120 and/or D/OE 29 Retiree Sick Pay with a Major-Minor 01-090. The agency payroll staff must review the Employee's Masterfile to ensure an employee's eligibility for the adjusted payments.
The lump sum vacation pay is subject to mandatory deductions: federal withholding and state income tax annualized, social security tax, retirement contributions and garnishments (if applicable).
The lump sum retirement sick pay is subject to federal withholding, state income tax annualized and social security tax only.
Note: Please ensure that the proper retirement code designation is utilized as required by the employee's Retirement Plan Status at retirement or separation.
Retired and separated employees who were deleted from the masterfile must be set up as new employees. You must enter a pay code 1, 2 or 3 for these individuals to avoid generating a regular pay check in the system. In lieu of 301 documentation, a memo must be submitted to the Comptroller's Payroll Services Division listing the employees added to the payroll system for the purpose of making this payment.


Questions may be directed as follows:
Policy and Procedure: Agency Human Resource Officer;
Supreme Court Decision Interpretation: Office of Labor Relations, (860) 418-6218;
Memorandum Interpretation: Office of the State Comptroller, Policy Services Division, (860) 702-3440;
Payroll Procedures: Office of the State Comptroller, Payroll Services Division, (860) 702-3463.
Direct list of affected Retirees and Separated Employees to: Retirement and Benefit Services Division, AUDIT UNIT, 55 Elm Street, Hartford, Connecticut 06106.


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