Item 810 - Settlement Pay

Example:

810 350.00

Audit
Instructions:

1. Settlement pay:  Year End Settlements

Year-end settlements are for employees who are NOT separating but must have a salary adjustment. A year-end settlement/adjustment must be documented on a STD. 671 Miscellaneous Payroll/Leave Actions form and keyed via Payroll Input Process (PIP) so the payment will be coded as settlement pay. See SCO PPM Section F012 for keying instructions. Although year-end adjustments may be submitted during July and August, it is preferable to make the adjustment request during August of each year. To accommodate benefit coverage entitlement for eligible employees at semester campuses that have a 4-6-2 academic year pattern, year end adjustments may be processed for the fall residual over two months (July and August).

2. Settlement pay:  Final Settlements

Final settlements are for separating employees who require an adjustment of annual wages earned and for employees who are moving to a pay plan that is not AY, 8/12, 10/12 or 11/12. In this case, final settlement pay must be requested in Item 810 on the PIMS transaction. (For a mid-month separation or reassignment, enter all money due in Item 810.).  Refer to the section below for conditions that require documents to be processed by CSU Audits. If a PIMS transaction is keyed after a PIP payment is issued, refer to Retroactive Separations within this section.

3. Immediate Pay Provisions

When separating academic year, 8/12, 10/12 or 11/12 pay plan employees, ’X’ Immediate Pay only when requesting early settlement pay prior to Master Payroll cut-off, and effective date is in the current pay period. Item 810 must reflect all pay due for the current pay period, including the time shown in Item 606. One warrant will issue. NOTE: If Item 606 is ’NON’, Immediate Pay (Item 615) must be completed or warrant will not issue.  DO NOT complete Item 615 when:

• 1. The master payroll warrant was or should be issued.

  2. Only settlement pay is included in Item 810 settlement amount.

  3. The transaction is processed after cut-off.

  4. Only lump sum vacation/extra hours is to be paid. Two warrants will issue, one for time worked shown in Item 606, and one for any settlement pay.

4. Gray Period Provisions

(Refer to Item 210 for a description of a "Gray Period".)

1. "Gray Period" separations can be keyed at the campus, after cut-off of the separation month. If the separation was keyed at the campus before cut-off, process S__C with Item 810 minus master money. If separation was voided by CSU Audits, then re-key the separation with Item 810 minus the master. PPSD Payroll Services Unit receives a listing of all separation transaction that do not generate separation pay.

2. "Gray Period" Leaves Without Pay and NDI transactions are to be submitted after cut-off and Master Pay is to be issued. Request, in Item 810, only what money is still due the employee. Do not submit before cut-off or an overpayment may occur. If keyed in error by campus before cut-off and is NDI or a leave without pay transaction, submit S__C minus Master money, Line H = Gray Period keyed at campus, received (month) Master.

5. Documents To Be Processed By CSU Audits

1. When settlement pay is a negative (minus) amount, submit Form Std 674 and PPT documentation for special processing. This condition requires coordination between CSU Audits and Payroll Services.

2. Appointment/Separation transactions effective in different pay periods, and the employee’s entire pay for the term is to be paid as settlement. This condition requires coordination between CSU Audits and Payroll Services.

3. When settlement pay is requested for an 11/12 employee (ranges 6 and 7), or classes that are 8/12, 10/12 or 11/12, audit message 9564-01B will be received. Attach the messages to the PIMS transaction (or write the message # in Line H).

4. A mid-month separation for academic, 8/12, 10/12 and 11/12 employees after cut-off, all money due in Item 810 with Form Std 674 to transfer funds. Line H = T/F Reg Pay to 810.

5. Out-of-sequence position number changes for academics with separations and Item 810 completed.

6. Separations/LWOP with Item 810 completed and to be voided:

• • Separation/LWOP not valid.

  • Effective date should be in a different pay period.

  • Submit with Form Std 674 to transfer funds. If keyed at the campus, an overpayment may occur.

7. When an employee has changed the deduction amount of the TSA/deferred compensation, or is setting up a new TSA/deferred compensation deduction, and the deduction form has not been sent to the deduction unit, attach the original form to the PPT. If the deduction form has already been sent, attach a copy of the deduction form to the PPT and send to CSU Audits.

8. Academic separations effective at the beginning of a pay period (BOB). Refer to Item 210 audit instructions for information on deductions and settlement pay.   

6. Retroactive Separations

When a separation is processed retroactively and the effective date is in the month that a PIP payment has issued, submit the PPT to CSU Audits for processing:

• 1. S__ 810 = (Amount of PIP payment)
     Line H = NO MONEY DUE PIP PAYMENT ONLY

  2. S__ 810 = (Amount of PIP payment plus additional money due)
     Line H = EE DUE ADJUSTMENT OF $______

If the separation was keyed without Item 810 completed, process S_C at the campus to enter the PIP payment in Item 810. If more money is due, enter the total amount due.