Deferred Payment for Participants of 2009 Retirement
Incentive Program
Deferred Payment of Accrued Vacation and Sick Leave for Participants of the 2009
Retirement Incentive Program (RIP)
In order to process the RIP Deferred Payments, Agency Human Resource and Payroll
personnel will need to enter the required transactions for impacted retirees into Core-CT.
The following covers directions on processing the three payments targeted for the
following pay periods and check dates:
06/29/2012 to 07/12/2012 check dated 07/27/2012
06/28/2013 to 07/11/2013 check dated 07/26/2013
06/27/2014 to 07/10/2014 check dated 07/25/2014
Please see Office of the State Comptrollers Retirement Services Memorandum No. 2009-
04 dated May 26, 2009.
These instructions detail how to process the RIP Retirees, set up their payment for July
2012, 2013 and 2014 (eliminating the need to transact this data again in successive
years), and handle the „benefit‟ events produced with each installment payment.
When an employee is terminated in Core-CT using either the Action of Termination or
Terminated With Benefits and any of the Reasons of Retirement, an employee must be
restored into Core-CT by using the “Add Employment Instance” menu path in order to
successfully process payouts due to the employee. (If an employee is Terminated due to
Retirement, the employee‟s pay group is set to “RET” which prevents any future payments
to be issued by the system.)
If all steps are not accomplished, in the order they are presented, the Additional Pay
payments will not occur. (Example: If only part of the Job Data entries are completed, the
additional pay entries can not be processed.)
Prior to restoring the Retiree, you must look up an available position number to use
for this RIP Deferral Payout process by navigating to Organizational Development >
Position Management > Maintain Positions/Budgets > Add/Update Position Information.
At the Position Data search page enter your Department and Job Code which is
“CONVVR” (C O N V V R) and click Search pushbutton. Select the position and verify that
the position Refill Indicator on the Description tab is set to „Auto‟. You may fill this
position with all terminated employees to make this deferral payment. (If position number
is unknown or if Refill Indicator is not set to “Auto” or “Six Months”, contact the Core-CT
Helpdesk for assistance.)
Retirees to receive deferral payments on checks dated 7/27/2012, 7/26/2013 and
7/25/2014
A) The Agency Human Resource Specialist navigates to Workforce Administration > Job
Information > Add Employment Instance
At the Search Page, enter the employee number and press add.
At the Work Location tab, enter the effective date which is „06/29/2012‟.
The Job Indicator should default in as „Secondary‟.
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Incentive Program
The Action should default in as „Hire‟.
Enter the Reason of „NOE - No Employment – Payout / DataChg Only‟.
Enter the Position Number as the position number retrieved earlier. The
Department and Location codes will default in. Verify the default for the location is
accurate and if not accurate change to the correct location. The Department code
must not be changed. If your agency has multiple Department codes, please locate
a position with the correct department code.
Click the tab for Job Information and change the job code to the employee‟s last
job code.
Verify the following fields are the employee‟s information at the time of retirement:
Regular/Temporary, Full/Part, Employee Class, Standard Hours and FTE.
Click the tab for Job Labor and change the Union Code to „99‟.
Click the Payroll tab and the FICA Status defaults in as „Subject‟; verify this is
accurate for this employee.
Click the tab for Salary Plan and verify the employee‟s salary plan and grade is
correct as of time of retirement.
On the Compensation tab, leave the salary amount blank. When you press save,
you may receive a message that compensation rate is blank, press ok to this
message.
Do not set up the Time Reporter Data page because payment will be
processed in Additional Pay.
Select the Notepad icon located next to the effective sequence and enter notes to
explain the reason for the transaction. (Include the new employee record number
is due to the 2009 RIP deferral payout 1st installment only and reflect the
calculation basis for such payment.)
Click „Save‟.
Immediately navigate to Workforce Administration > Job Information > Job Data.
At the Search Page, enter the employee number and press search.
At the Work Location click on the „+‟ button to add a new effective dated row;
enter the effective date which is „07/13/2012‟ (the day after the close of the pay
period).
Enter the Action of „Termination‟.
Enter the new Reason code of „NOE– No Employment - Payout Only‟.
Select the Notepad icon located next to the effective sequence and enter notes to
explain the reason for the transaction. (Include Employee Record number
termination is due to deferral payment only.)
Click „Save‟.
Return to the Work Location tab and click on the „+‟ button to add a new effective
dated row; enter the effective date which is „06/28/2013‟.
Enter the Action of „Rehire‟.
Enter the Reason of „NOE- No Employment – Payout / Data Chg Only‟.
Select the Notepad icon located next to the effective sequence and enter notes to
explain the reason for the transaction. (Include the new employee record number
is due to the 2009 RIP deferral payout 2nd installment only and reflect the
calculation basis for such payment.)
Click „Save‟.
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Return to the Work Location tab and click on the „+‟ button to add a new effective
dated row; enter the effective date which is „07/12/2013‟ (the day after the close of
the pay period).
Enter the Action of „Termination‟.
Enter the new Reason code of „NOE– No Employment - Payout Only‟.
Select the Notepad icon located next to the effective sequence and enter notes to
explain the reason for the transaction. (Include Employee Record number
termination is due to deferral payment only.)
Click „Save‟.
Return to the Work Location tab and click on the „+‟ button to add a new effective
dated row; enter the effective date which is „06/27/2014‟.
Enter the Action of „Rehire‟.
Enter the Reason of „NOE- No Employment - Payout / Data Chg Only‟.
Select the Notepad icon located next to the effective sequence and enter notes to
explain the reason for the transaction. (Include the new employee record number
is due to the 2009 RIP deferral payout 3rd installment only and reflect the
calculation basis for such payment.
Click „Save‟.
Return to the Work Location tab and click on the „+‟ button to add a new effective
dated row; enter the effective date which is „07/11/2014‟ (the day after the close of
the pay period).
Enter the Action of „Termination‟.
Enter the new Reason code of „NOE– No Employment - Payout Only‟.
Select the Notepad icon located next to the effective sequence and enter notes to
explain the reason for the transaction. (Include Employee Record number
termination is due to deferral payment only.)
Click „Save‟.
To verify all of the entries have been entered, an EPM query was developed:
CT_CORE_HR_RIP_JOB_DATA_AUDIT
B) If a retiree notifies his/her former agency with a home address change, Agency HR
Specialist will need to navigate to Workforce Administration > Personal Information >
Modify a Person.
At the Search Page, enter the employee number or name and press search.
At the Address History tab, for the Address Type of ‘Home’, click on the „+‟
button to add a new effective dated row in the Address History section.
Enter the effective date and update the address.
Click „Save‟.
Vacation payments (VPA-Vacation Payout Amount) are subject to FICA, Medicare,
Federal and State Withholding tax and Retirement deductions (Employer and
Employee share) except for Alternate Retirement Program members. For ARP
members, no retirement deductions should be taken. Sick payments (RSP-
Retirement Sick Pay) are subject to all of the above except the Retirement
deductions.
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Incentive Program
To verify all of the entries have been entered into Additional Pay, an EPM query was
developed: CT_CORE_HR_RIP_ADDL_PAY_AUDIT
To verify all of the entries that have not been entered into Additional Pay, the EPM query
developed is: CT_CORE_HR_RIP_NO_ADDL_PAY_ENT
C) The Agency Payroll Specialist will set up the employee‟s General Deductions by
navigating to Payroll for North America > Employee Pay Data USA > Deductions > Create
General Deduction.
At the Search Page, enter the employee number and the correct employment
record number. Then press search.
At the General Deduction section, add a new effective dated row by clicking the „+‟
button.
Select the retirement deduction code needed (must add in deduction codes for
retirement for both Employee and Employer share prior to clicking on the save
pushbutton). For ARP members, use the retirement deduction code for no
retirement RNRSS (Not Elig for Retirement/with FICA) or RNRNSS (Not Elig for
Ret No FICA) and the employer retirement deduction code of RNRER.
Under Deduction Details section, enter in the effective date, which is „06/29/2012‟.
The Deduction Calculation Routine should default in as Default to Deduction Table.
At the Deduction End Date field, enter in the end date which is „07/10/2014‟.
Add another new effective dated row by clicking the „+‟ button.
Select the next retirement deduction code needed (either remaining Employee or
Employer share deduction code).
Under Deduction Details section, enter in the effective date, which is „06/29/2012‟.
The Deduction Calculation Routine should default in as Default to Deduction Table.
At the Deduction End Date field, enter in the end date which is „07/10/2014‟.
Click „Save‟.
To verify all of the entries have been entered into General Deductions, an EPM query was
developed: CT_CORE_HR_RIP_DEDUCTION_AUDIT
To verify all of the entries that have not been entered into General Deductions, the EPM
query developed is: CT_CORE_HR_RIP_NO_DEDUCT_ENT
E) Next, the employee‟s Federal and State Tax needs to be set up if not currently
active. The Agency Payroll Specialist navigates to Payroll for North America >
Employee Pay Data USA > Tax Information > Update Employee Tax Data.
At the Search Page, enter the employee number and then press search.
Verify employee‟s federal and state taxes are valid.
F) Last, the Agency Payroll Specialist enters in the Additional Pay amount by
navigating to Payroll for North America > Employee Pay Data USA > > Create
Additional Pay. (Note: Care should be taken to accurately calculate the payout. The
retiree would have incorrectly continued to accrue time if the agency had not terminated
their leave plans, see section H.)
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At the Search Page, enter the employee number and include the employee
record number or employee name and press search.
Enter the Earning Code which is ‘RSP – Retirement Sick Pay’ for the Sick
time payout payments.
Enter in the Effective Date which is „06/29/2012‟.
Under Payment Details, enter Additional Sequence which is „1‟.
Enter the End Date which is „07/12/2012‟.
Enter Earning Amount, which is the payment amount(s).
Click the ‘OK to Pay’ check box.
Click the First, Second, Third, Fourth checkboxes on the Applies to Pay
Periods.
Note: Do not override the Account Code. Account Code may not exist or
may not be active at the time of payment. Position selected has the
agency’s default account code.
Click „Save‟.
Add in a new effective dated row by clicking the „+‟ button.
Enter in the Effective Date which is „06/28/2013‟.
Under Payment Details, enter Additional Sequence which is „1‟.
Change the End Date to „07/11/2013‟.
Enter Earning Amount, which is the payment amount(s).
Click the ‘OK to Pay’ check box.
Click the First, Second, Third, Fourth checkboxes on the Applies to Pay
Periods.
Note: Do not override the Account Code. Account Code may not exist or may
not be active at the time of payment. Position selected has the agency‟s
default account code.
Click „Save‟.
Add in a new effective dated row by clicking the „+‟ button.
Enter in the Effective Date which is „06/27/2014‟.
Under Payment Details, enter Additional Sequence which is „1‟.
Change the End Date to „07/10/2014‟.
Enter Earning Amount, which is the payment amount(s).
Click the ‘OK to Pay’ check box.
Click the First, Second, Third, Fourth checkboxes on the Applies to Pay
Periods.
Note: Do not override the Account Code. Account Code may not exist or may
not be active at the time of payment. Position selected has the agency‟s
default account code.
Click „Save‟.
Add in a new Earning Code row by clicking the „+‟ button.
Enter the Earning Code which is ‘VPA – Vacation Payout Amounts’ for the
Vacation payout payments.
Enter in the Effective Date which is „06/29/2012‟.
Under Payment Details, enter Additional Sequence which is „1‟.
Enter the End Date which is „07/12/2012‟.
Enter Earnings Amount, which is the payment amount(s).
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Incentive Program
Click the ‘OK to Pay’ check box.
Click the First, Second, Third, Fourth checkboxes on the Applies to Pay
Periods.
Note: Do not override the Account Code. Account Code may not exist or may
not be active at the time of payment. Position selected has agencies default
account code.
Click „Save‟.
Add in a new effective dated row by clicking the „+‟ button.
Enter in the Effective Date which is „06/28/2013‟.
Under Payment Details, enter Additional Sequence which is „1‟.
Change the End Date to „07/11/2013‟.
Enter Earning Amount, which is the payment amount(s).
Click the ‘OK to Pay’ check box.
Click the First, Second, Third, Fourth checkboxes on the Applies to Pay
Periods.
Note: Do not override the Account Code. Account Code may not exist or may
not be active at the time of payment. Position selected has the agency‟s
default account code.
Click „Save‟.
Add in a new effective dated row by clicking the „+‟ button.
Enter in the Effective Date which is „06/27/2014‟.
Under Payment Details, enter Additional Sequence which is „1‟.
Change the End Date to „07/10/2014‟.
Enter Earning Amount, which is the payment amount(s). Click the ‘OK to Pay’
check box.
Click the First, Second, Third, Fourth checkboxes on the Applies to Pay
Periods.
Note: Do not override the Account Code. Account Code may not exist or may
not be active at the time of payment. Position selected has the agency‟s
default account code.
Click „Save‟.
Agencies can distribute the payouts over multiple weeks for tax purposes by
opening the Tax Information Section in Additional Pay and changing the Tax
Periods to appropriately designate the amount of pay periods the retiree should
be taxed. (Example: 10 days pay equals 1 Tax Period.)
G) After the Job Data transaction is entered, the Agency Benefit Specialist must process
the HIR-Hire or REH-Rehire events in „On Demand Event Maintenance’ by
navigating to Benefits > Manage Automated Enrollment >Events > On Demand
Event Maintenance. Because the Payroll Calendars for 2012, 2013 and 2014 have
not yet been configured, these events will not close normally and may cause an error
message. The Open Events must be voided using the following steps:
Click on Event Status Update pushbutton.
Select the earliest MSC or Term event (the Event Status for this event
should be set to „Open‟).
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Incentive Program
Set the Process Indicator to „Void‟.
Click „OK‟ button.
System returns you to the On Demand Event Maintenance page.
Review the Process Indicator on the bottom of the page (should be set to
„V‟).
Click the Reprocess pushbutton.
An error message regarding the pay calendar will appear.
Click „OK‟.
Click Event Status Update pushbutton.
Verify that the event now shows an Event Status of „Void‟.
Continue to follow these steps until all events created by the Job Data rows
are voided.
H) When retiree was originally separated, their Leave Plans should have been
terminated. Please verify this process was completed by navigating to Benefits >
Enroll in Benefits > Leave Plans.
At the Search Page, enter the employee number and include the employee
record number or employee name and press search for the Employment Record
of the actual Retirement row.
Verify the Coverage Election radio button indicates „Terminate‟ for all three
plans (Sick, Vacation, Personal).
If the „Terminate‟ radio button is not selected, then add in a new effective dated
row by clicking on the „+‟ button in the Coverage section of the page.
The effective date cannot be earlier than the last accrual process date. (Note: the
system will not retroactively deduct any leave accruals that were awarded after
the original retirement date. If the balances were not zeroed out upon retirement,
you will be unable to do so now.)
Click on the „Terminate‟ option.
Click on the „Save‟ pushbutton.
Perform this task for all three Leave Plans (Sick, Vacation, Personal) by moving
from one Plan Type to another.
I) In the event of the retiree‟s death prior to the final deferral payment, the balance
should be issued as a lump sum payment using the appropriate death payment
earning codes in Additional Pay. Since the Additional Pay record should already
exist, agencies will need to contact their Central Payroll Auditing Staff in order to
make deletions and adjustments on those records.
Questions related to payment transactions should be directed to the Central Payroll
Auditing staff.
Questions related to Benefits Administration, Time and Labor or Job Data should be
directed to the Help Desk.
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Incentive Program
Please read the question and answer listing below to assist in your
processing of the deferred vacation and sick payouts.
Question: When can agencies begin to enter Job Data transactions to process these
deferred payments?
Answer: Agencies can begin to enter the transactions starting July 13, 2009.
Question: How should Direct Deposit be handled?
Answer: When an employee retires from the State, their Direct Deposit should be inactivated.
Do not reactivate this function. Please verify that the status of each employee‟s Direct
Deposit record is inactivated by navigating to Compensate Employees>Maintain Payroll
Data(US)>Use>Direct Deposit.
Question: In Section A, Job Information tab indicates to complete the Employee Class. What
Employee Class should be selected?
Answer: In most cases, the employee‟s Employee Class was Permanent. However, if that
was not the case due to a recent appointment change (example: promotion), you would
select the actual Employee Class at the time the individual retired.
Question: When entering the Termination row in Job Data, what if the wrong Reason code
was used (example: used Termination reason code of VRE or SRR?)
Answer: A correction will need to be made to the Job Data record. Contact the help desk to
log in a ticket listing all of the Employees, Employee ID, Employment Record number to
correct the existing Job Data.
Question: In the Notepad section, what is meant by “enter notes to explain the reason for
the transaction?”
Answer: The deferral amount paid is based on an employee‟s vacation and sick accrual
payments (some bargaining units also include holiday payment). The calculation should be
indicated in this section to verify how the amount was derived. (Example: X amount of
vacation days/hours is valued at $$ divided by 3 payments due equals $$.)
Question: Should CT State Income Tax be withheld from the RIP payments?
Answer: Yes. We have been advised by the Department of Revenue Services that state
income tax should be withheld from all employees receiving payments under the RIP.
Question: Can employee defer his/her sick and vacation payout to his/her 457 and/or 403(b)
Plan?
Answer: No. Pursuant to Section 415 of the Internal Revenue Code employees only have 2
1/2 months after severance from employment to defer their sick and vacation payout.
Question: If an employee rescinds his/her retirement or is rehired into state service later,
what employment record should they be rehired into?
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Deferred Payment for Participants of 2009 Retirement
Incentive Program
Answer: An employee can not be rehired in his/her original employment record number.
They must be rehired by adding an employment instance. If the rehire is later then the 2014
payout, the employment record to use is the payout employment instance.
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