Title 9 Part 147

It is the policy of the State of New York to evaluate accurately managerial and confidential employees. One purpose of performance evaluation is to serve as a positive motivator for managerial/confidential employees to improve overall effectiveness and to increase productivity. The second purpose of such evaluation is to compensate adequately managerial/confidential employees, specifically excluded from representation for purposes of collective negotiation, with an objective and merit-based system linked to actual employee performance. Such compensation may include performance advances and performance awards, or their equivalent made to eligible employees.

These rules and regulations shall apply to the following annual salaried employees, other than those in the exempt jurisdictional class or in positions allocated to M8:

For the purpose of this Part, certain terms are defined as follows:

The greater of the minimum salary stated in the salary schedule for each of the salary grades applicable to employees covered by this Part, or the minimum salary otherwise established by the Director of the Budget.

The lesser of the maximum salary stated in the salary schedule for each of the salary grades applicable to employees covered by this Part, or the maximum salary otherwise established by the Director of the Budget.

The dollar difference between the hiring rate and the job rate of a salary grade.

An annual increase in the basic salary for an employee who is below the job rate of the salary grade, based on performance evaluations.

A lump sum annual payment made to an employee who is within two percent of the job rate, based on a performance evaluation.

An increase in the basic salary or lump sum, for an employee who has been at or above the job rate for five or more years, based on a performance evaluation.

Positions equated to a grade as shown on the certificate of approval for the position, a budget director's approval form signed by the Director of the Budget or his designee, or the appropriate classification form (CC-4) signed by the Director of the Budget or his designee.

Annual salaried employees, whose basic annual salary is below the job rate for their positions and whose performance has been rated higher than “Unsatisfactory” or its equivalent during the preceding evaluation period are eligible to receive performance advances. Employees whose positions are unallocated but are equated to salary grades (other than grade M-8) by the Director of the Budget shall be eligible for performance advances as if allocated to the equated grade.

Performance advances shall become effective on the first day of the first payroll period beginning on or after July 1st, except that advances for education directors paid over 10 months shall become effective September 1st.

Each agency will be assigned a performance advance amount which will be the maximum aggregate increase to base salaries of eligible employees that may be granted as a result of performance advances. Performance advance amounts will be based on the actual number, salaries and grades of eligible employees in each agency and will be assigned by the Director of the Budget. Performance advance amounts may be assigned on a facility or payroll code basis as appropriate.

An agency's performance advance amount will be distributed to eligible employees based upon the actual distribution of ratings. However, where the number of eligible employees is insufficient to enable a proportional distribution of payments, an appropriate rating distribution will be constructed, based on experience. Employees rated “Needs Improvement” or its equivalent will receive an amount equal to one sixth of their job range; employees rated “Effective,” “Highly Effective” or their equivalent will receive one fourth of their job range; and employees rated “Outstanding” or its equivalent will receive up to one third of their job range, depending on the percentage of employees rated “Outstanding” or its equivalent. Employees rated “Unsatisfactory” or its equivalent will not receive advances. In any case, however, where a performance advance payment would result in a basic annual salary above the job rate for the employee's positions, only that portion of the advance which would bring the employee's salary up to the job rate shall be paid.

Employees who are promoted or appointed to a higher salary grade during the evaluation period who are otherwise eligible for an advance shall receive a partial advance prorated on the number of pay periods the employee has served in the higher grade as described in section 147.3(b) of this Part. In addition, at the end of the evaluation period if the employee would have been eligible for an advance in the lower grade, the salary upon promotion shall be reconstructed by applying a prorated advance amount based on number of pay periods served in the lower grade as described in section 147.3(b). However, an employee with 24 or more pay periods of creditable service in both grades during the evaluation period shall receive credits for a full advance; the advance in the higher grade shall be prorated as described in section 147.3(b), while the balance shall be applied to reconstruction of the salary upon promotion. Any advance based on the higher grade shall be added to this reconstructed salary. In each case the performance advance amount used shall be 25 percent of the salary range.

Annual salaried employees with 20 pay periods of creditable service at a salary within two percent of the job rate or above the job rate in the 12 months preceding July 1st, and who are assigned overall ratings of “Highly Effective,” “Outstanding” or their equivalent, are eligible to receive performance awards or merit payments. For those employees M/C 17 and below with five or more years of continuous service at or above the job rate, eligibility for the 5- and 10-year longevity performance awards will be determined based on the employees' status and service credit on the March 31st preceding the July 1st rating. Employees whose positions are unallocated but are equated to salary grades or whose job rates are otherwise established by the Director of the Budget shall be eligible for performance award payments.

Eligible employees will receive lump sum performance award and merit payments as soon as practicable based on evaluations due July 1st.

Each agency will be assigned amounts which will be the maximum amount that may be granted to eligible employees as a result of performance awards, longevity performance awards and merit payments. These amounts will be based on the actual number and salary grades of eligible managerial/confidential employees and will be assigned by the Director of the Budget. These amounts may be assigned on a facility or payroll code basis, as appropriate.

Longevity performance awards are either lump sum payments or increases to salary for those employees with 5 or more and 10 or more years of service at or above the job rate. All eligible employees who have been rated at least “Effective” or its equivalent will receive these awards.

Sufficient amounts for merit payments will be assigned to agencies so that 30 percent of the employees eligible can receive payments at the midpoint of the merit range. Although an agency may pay additional awards by concentrating merit payments toward the minimum level of the range, no more than 40 percent of those eligible may receive merit payments, regardless of the amount of the individual payments. A sufficient amount will also be assigned to provide performance awards for 40 percent of those eligible. If more than 40 percent of the eligible employees receive ratings of “Highly Effective,” “Outstanding” or their equivalent, the agency shall develop criteria to determine who shall receive the awards and merit payments. Performance awards, longevity performance awards and merit payments will be paid in accordance with the following schedules:

For evaluations due July 1, 1986 and July 1, 1987: Salary grade Award M/C3 $400 4 425 5 450 6 475 7 500 8 525 9 550 10 575 11 600 12 625 13 650 14 675 15 700 16 725 17 750

Merit payments for eligible employees.

For evaluations due July 1, 1986 and July 1, 1987: Salary grade Merit payment range M/C 18 - MII $1,000 - $2,500 MIII - MVII $1,500 - $3,500

Part-time employees shall be eligible for performance advances on the same basis as full-time employees. Performance awards, longevity performance awards and merit payments shall be paid on a prorated basis, based on the employee's status on July 1st for performance awards and merit payments, and March 31st for longevity performance awards.

Notwithstanding any other provision of this Part, employees serving in nongraded trainee positions shall be subject to performance evaluation processes and eligible for performance advances in accordance with the terms of plans developed by the Director of Classification and Compensation and approved by the Director of the Budget.

Notwithstanding any other provisions of this Part, officers or employees whose salaries are prescribed by section 19 of the Correction Law shall be subject to performance evaluation processes and be eligible for performance advances in accordance with the terms of plans developed by the Commissioner of Correctional Services and approved by the Director of the Budget.

Upon the request of the Director of the Budget, each agency shall provide timely statistical reports of performance ratings, advances and awards in a manner prescribed by the director. Such reports shall be filed simultaneously in a timely fashion with the Director of the Budget and the Director of Employee Relations.

The specific provisions and limitations contained in this Part may be waived pursuant to provisions of law by the Director of the Budget whenever he/she determines that strict adherence to the rules would be detrimental to the sound and orderly administration of State government.