Payment of Deferred Compensation

(James Hennerty, CSEA Deputy Director of Contract Administration, February 18, 2010)

The Office of the State Comptroller has kindly given us a preview of how the payment of deferred salary will occur for those employees affected. This procedure could change, depending on what is happening overall with the proposed budget and other actions in the Legislature and the Governor's Office. Remember, this is the repayment of salary percentage increases, increments and increments upon promotion which were deferred (withheld) from employees whose pay was already at $115,000 a year, or which would have put a member at or above $115,000 a year. (See Article 7.11 in the current Agreement.)

The plan is to implement the salary restoration in April 2011.

  • The payment will be processed in one check and NOT separate checks. All retro pay will be included in the same paycheck as the regular pay for that period.
  • The projected payment date is the Administrative Lag Payment Date of April 27, 2011.
  • The Division of the Budget has indicated that no pay bill (appropriation bill) is required, as funding is already included in the UCS budget.
  • Regarding employees who have separated from UCS employment, the individuals have been identified and the payments will be reflected in the above processing dates.

CSEA does not give advice to members concerning income tax withholding or filing. Members who are concerned about withholding rates for the anticipated large check of April 27 should see a financial adviser or appropriate professional if they wish assistance in handling the matter.

Could something about this go wrong? If there is no State budget on time, or no emergency appropriation, or a "shutdown" of State services, the plan could be upset. It seems unlikely this would happen, but in the event the State does not pay the money, CSEA will make efforts to enforce the provisions of our Agreement, as we have done in the past.

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