15) Why is someone who is coded as being eligible for longevity on Screen 101 in Personnel Maintenance not receiving the longevity pay?
To be eligible for longevity pay, several conditions must be satisfied. Generally, these conditions are that the employee:
be budgeted as a full-time employee (100% effort);
have a longevity eligibility status code of ‘Y’ (yes) or ‘F’ (fixed amount);
not be paid from teaching sources;
has completed two years (24 months) of state employment or service*,
be paid for a payroll period including the first day of the month.
An employee in a position eligible to receive longevity pay should have the Longevity Eligibility Code set to Yes (Y). This eligibility is defined on Screen 101 in Personnel Maintenance. The B/P/P Operations Center recommends that the Longevity Flag be set to Y for all budgeted employees. If the employee is budgeted at less than a full-time effort (100%), the employee will not receive the longevity pay even if this eligibility code is set to Y.
Student and casual wage employees should have the eligibility code set to N (they do not work full time), as they are not in positions that would be eligible should all of the other conditions be met. Should a wage employee be moved to a budgeted position, several data fields should be changed at that time, one of those being the Longevity Eligibility code.
The employee must complete two years (24 months) of eligible state service prior to receiving longevity pay. A month of service is credited to the employee at the end of each month in which the employee works, as long as the employee was employed on the first work day of the month. Longevity pay is calculated starting with the 25th month of employment. If the employee were hired on September 1, 2003, longevity pay would first be paid for the payroll period including September 1, 2005.
Another condition that must be met is that no pay received for the pay period can be from teaching sources (faculty salaries). The object classes that define faculty salaries are 1410, 1415, and 1425. AmeriCorps and College Work-Study student salaries are also excluded. AmeriCorps salaries are based on object class code 1599. College Work-Study student salaries are based on object class codes 1745, 1746, 1747, 1750, 1751, 1755, 1756 and 1759. This check is made during the payroll calculation process.
Longevity pay is only calculated for pay types B, F, H, I, and L. This check is made during the payroll calculation process. Longevity pay can be forced on other pay types by entering extra deduction(s) for the amounts to be processed.
The “period includes first day of the month” flag (LNG-CD on the Payroll Maintenance (Screen in the 500 series)) MUST be set to ‘Y’. This flag indicates that the longevity pay is to be calculated for the payroll source record. The B/P/P System will automatically set this flag for payroll source records it builds. Payroll Office personnel must set this flag for records they add manually to the payroll. They must be sensitive to the payroll period being processed and the employee’s longevity status to ensure proper longevity pay calculation.
Just as a note, longevity pay is prorated across all of the payroll sources for the employee. If an employee has two sources and they each pay 50% of the employee’s salary, then each source will be charged $10.00, given that the employee is entitled to $20.00 longevity.
Individuals who retired from state service before June 1, 2005 and returned to work for the state prior to September 1, 2005 are eligible to receive longevity pay at the rate they were eligible for immediately prior to September 1, 2005. However, their rate of longevity pay is not to increase. This group of working retirees (employees) should have the Longevity Eligibility status code set to F. This code will allow longevity to continue to be paid, however, the Longevity months of service accumulator will remain Fixed and additional service will be accumulated against the new RET (Retiree Months of Service) field. This new field will be used in the calculation of total months of service for purposes of annual leave accrual by LeaveTraq. Individuals who retire from state service after June 1, 2005 and return to work for the state are NOT eligible to receive longevity pay after September 1, 2005. This group of working retirees (employees) should have the Longevity Eligibility status code set to R. This code will cause longevity to NOT be paid, while at the same time start to accumulate their state service in a separate accumulator (the RET - Retiree Months of Service field). This new RET Months of Service field will maintain state service earned following retirement and will be used as the basis for leave accrual by LeaveTraq following August 31, 2005 for employees with this Longevity Status code.
* Prior to September 1, 2001, longevity was paid in five (5) year increments. Effective September 1, 2001, the basis for the calculation was moved to three (3) years. Effective September 1, 2005, the basis for the calculation was moved to two (2) years. This description above has been modified to reflect the 2-year basis.
This page was last updated on 06/11/2010 17:13:13