Department of Civil Service

NY07-55

TO: State Agency Health Benefits Administrators
FROM: Employee Benefits Division
SUBJECT: PEP (CSEA, DC-37 and Managerial/Confidential employees only)
DATE: January 3, 2008

PEP for 2008

The Productivity Enhancement Program (PEP) allows eligible CSEA, DC-37 and Managerial/Confidential employees to exchange previously accrued annual leave (vacation) and/or personal leave in return for a credit to be applied toward their employee share of NYSHIP premiums on a biweekly basis. Since several variations exist for eligibility of employees in each of the three branches of State government, a matrix summarizing the differing aspects of the programs is attached to this memorandum.

CSEA/DC-37 participation in PEP for 2008 is contingent upon ratification of the 2007-2011 Agreement between the State and CSEA and between the State and DC-37.

PEP credit for 2008 is currently available only for CSEA, DC-37 and Managerial/Confidential employees.

To be eligible to enroll in PEP, employees must meet the following criteria:

• Be a NYSHIP enrollee (contract holder) in either the Empire Plan or an HMO at the time of enrollment; and
• Be an Executive or Legislative branch employee covered by the 2007-2011 New York State/ CSEA/DC37 collective bargaining agreements; or a Managerial/Confidential employee (except SUNY M/C employees-NU13) in a title at or below salary grade 17 or equated to a position at or below salary grade 17; and
• Have a minimum combined balance of annual and personnel leave of at least 8 days after making the forfeiture for Executive branch and Legislative branch employees.

Eligible part-time employees may participate on a prorated basis.

Enrollment Period

The enrollment period is scheduled to run from Wednesday January 9, 2008 through Monday, February 11, 2008

Exchanged Leave

Executive and Legislative branch eligible employees exchange 3 days of Annual and/or Personnel Leave for the PEP credit amount of $450.00.

Additional program details for the 2008 PEP for Executive branch employees can be found in the Attendance and Leave Manual Policy Bulletin # 2007 - 01, a copy of which is enclosed for your information.

Agencies are responsible for distribution and retention of the enrollment forms and coordination between the agency personnel office and the HBA with respect to certification of accrual adjustment(s) and initiating the PEP credit on NYBEAS.

Once enrolled for a program year, employees continue to participate in that year unless they separate from State service or cease to be NYSHIP contract holders. Leave forfeited in association with the program will not be returned, in whole or in part, to employees who cease to be eligible for participation in the program.

Any questions should be directed to your processor.

Health Insurance Premium Contribution Credit for PEP

For the 2008 PEP, the credit that will be applied to the biweekly employee share of the health insurance premium and can be calculated as reflected below:

Full-Time Employees
The biweekly credit is equal to $17.31 ($450/26 paychecks) OR the biweekly cost of the enrollee’s employee share NYSHIP contribution, whichever is less.

Part-Time Employees
The biweekly credit is equal to $17.31 multiplied by the employee’s payroll/employment percentage OR the biweekly cost of the enrollee’s employee share NYSHIP contribution, whichever is less.

The amount of credit will only be adjusted if the enrollee moves from individual to family coverage during the program year. For example:

Blue Choice (066)

Individual Premium (2008): $15.24
Family Premium (2008): $72.95
Calculated PEP credit: $17.31

An enrollee with individual coverage with Blue Choice, option 066, would get a PEP credit of $15.24, not the calculated credit of $17.31. If that enrollee moves to family coverage, the credit would change to $17.31.

NYBEAS PROCESSING

To ADD the Health Insurance Premium Contribution Credit for PEP

HBAs will process a PEP/ENR to add the credit to NYBEAS (see below). This transaction is part of the PEP enrollment panel. The credit will show on the enrollee’s billing record as a premium credit.

HOW TO ADD THE PEP CREDIT

• Follow the NYBEAS links from Home, Compensate Employees, Administer NYBEAS Updates, Use, PEP enrollment.
• An input screen will display (see next page). Enter the enrollee’s identification number in the search dialog box and click the search button.
• In the Plan Type field, enter 10 (for Medical). Press Tab.
• The Action and Reason fields will automatically populate (PEP/ENR).
• In the Request Dt field, enter the date of signature on the PEP (CSEA/DC-37/M/C) enrollment form. The date should be January 9, 2008 through February 11, 2008 for all eligible employees (PEP)
• Press Tab.
• In the PEP Percentage field Type the employee’s payroll/employment percentage. Click Save. (The default is 100%)

To view the PEP percentage, click on Inquire, PEP Enrollment Inquiry.

To view the PEP credit calculated, click on Inquire, NYBEAS Update History and the Billings tab.

To view the actual PEP credit applied, click on Inquire, NYBEAS Update History and the Accounting tab.

* The actual PEP credit applied will be the lesser of the calculated amount or the enrollee’s health insurance premium.

Timing of NYBEAS Processing

Since the transaction can not be keyed until after the certification of the accrual adjustment, coordination with your agencies personnel/payroll staff who handles this is the key to PEP credit processing. See the below chart showing the dates to key the transaction and the impacted paycheck The resulting impact on your employees’ paychecks may prompt numerous question and complaints for you to deal with.

**This panel will be open for NYBEAS keying until 2/28/08.

Administration Lag1/9/08-1/22/082/6/200812/26/07 thru 12/10/083Administration Lag2/6/08-2/19/083/5/200812/26/07 thru 12/10/085

PEP Eligibility

Executive/ Legislative (PEP)

CSEA DC37 & M/C

≤ 171/9/08-2/11/083Annual Leave &/or Personal Leave8 days AL &/or PL

Attachments: