Settlement Inquiry- Submission Settlement Inquiry- Follow Up Defense Finance and Accounting Service

Transcription

1 Settlement Inquiry- Submission Settlement Inquiry- Follow Up Defense Finance and Accounting Service INDIANAPOLIS PAYROLL OFFICE Integrity - Service - Innovation

2 Settlement Tickets- Back Pay DFAS often uses settlement as a shorthand term that refers to a document DFAS receives requiring the payment of back pay. 12/7/2017 Integrity - Service - Innovation 2

3 Settlements Back Pay Act The Back Pay Act of 1966 permitted federal employees to be reimbursed for wrongful deprivation of pay under certain circumstances. 5 USC 5596 The Back Pay Act was amended in 1978 to include the administrative determination supporting a monetary award may include decisions relating to an unfair labor practice or grievance. 5 USC 5596(b)(1) The amendment also provides for the payment of interest on awards of back pay and attorney fees. 12/7/2017 Integrity - Service - Innovation 3

4 Settlement Back Pay Act Sources 5 USC CFR IRS Publication 15-A Page 11, Back Pay 12/7/2017 Integrity - Service - Innovation 4

5 What is a Settlement Agreement A settlement agreement is a legal document which outlines a remedy or series of remedies handed down by a judge, or agreed upon by a Union Representative or Legal Representative of the employee and the Agency to alleviate a grievance. 12/7/2017 Integrity - Service - Innovation 5

6 What Documentation is Required? Attach the following documentation to the Remedy Ticket, or provide a statement as to why the documentation is not applicable: Settlement agreement, administrative determination, arbitrator award, or order Signed and Completed Employee Statement Relative to Back Pay All required SF50s (new, corrected, or canceled) ***Do not process online SF50s until notified to do so by the payroll office.*** Certified timecards/corrected timecards. ***Do not process online timecards until notified to do so by the payroll office.*** (continued on next slide) 12/7/2017 Integrity - Service - Innovation 6

7 What Documentation is Required? (continued) All relevant benefit election forms pursuant to 5 CFR (i.e. for FEGLI, FEHB, TSP, etc.). Outside earnings documentation. (Include record of all amounts earned by the employee in a job undertaken to replace lost wages during the back pay period. Documentation includes W-2 or 1099 statements, payroll documents/records (for current year, unless requested otherwise), unemployment earning statements, workers compensation, etc. Include record of any retirement annuity payments, retirement refunds or severance pay received by the employee upon separation The type of leave to be charged if the employee was unable to work during any part of the back pay period. Provide corrected timecards for leave charged Statement regarding whether interest is payable and the beginning date of accrual NOTE: If the back pay period includes dates prior to the agency s conversion to DCPS, include a statement/spreadsheet certifying the breakdown of the amount owed prior to conversion that identifies all pay and leave affected. 12/7/2017 Integrity - Service - Innovation 7

8 Employees Statement Relative to Back Pay 12/7/2017 Integrity - Service - Innovation 8

9 Employees Statement Relative to Back Pay (continued) 12/7/2017 Integrity - Service - Innovation 9

10 Corrected and/or Cancelled SF50s Submit copies or all corrected and/or cancelled SF50 s For deceased employees; if DFAS doesn t already have a file for the beneficiary, then all required documentation for Unpaid Wages & Compensation will need to be submitted. 12/7/2017 Integrity - Service - Innovation 10

11 Human Resources Offices Processing of Corrected SF-50s Online SF50 s should be processed through to DCPS via the Personnel/Payroll interface. This process should coincide with the manual payments for any offline time periods to calculate interest properly. Time and attendance will need to be processed for the online timeframe. DCPS: Defense Civilian Payroll System Personnel Payroll Interface 12/7/2017 Integrity - Service - Innovation 11

12 Periods of Inability to Work Any time the employee was unable to work during the back pay period, the customer must provide copies of all corrected timecards to identify what type of leave to be charged. For example: Employee was on maternity leave, illness requiring hospitalization or debilitating injury that would require sick leave if employee would have been working. 12/7/2017 Integrity - Service - Innovation 12

13 Timecards including other types of pay Submit certified timecards or certified corrected time and attendance records, if applicable, to include overtime, night differential, shift premium, Sunday premium pay, awards, etc. Include number of hours and dates for each entitlement. NOTE: Payroll is required to obtain all certified timecards prior to performing the pay audit to assure accuracy of back pay and leave Also, online timecard corrections should be coordinated with the DFAS payroll office (pro) in advance of processing. 12/7/2017 Integrity - Service - Innovation 13

14 Federal Employees Health Benefits (FEHB)/ Thrift Savings Plan (TSP) Submit election forms for FEHB and/or TSP, if applicable Benefits counseling statement is required in regard to handling of FEHB and TSP. FEHB and TSP are considered voluntary elections, and require employee approval prior to establishing and collecting indebtedness from retroactive pay. 12/7/2017 Integrity - Service - Innovation 14

15 Federal Employees Group Life Insurance (FEGLI) FEGLI premiums are deducted from the back pay award only under the following circumstances: FEGLI During Erroneous Retirement: If FEGLI coverage was continued during a period of erroneous retirement, deduct the FEGLI premiums. Example: The employee retired upon separation and continued FEGLI coverage as a retiree. FEGLI premiums would be deducted for the back pay period. Employee was Suspended or Separated and Died or was Dismembered During Back Pay Period: If the Employee was erroneously suspended or separated and Employee died or had an accidental dismemberment during the back pay period, then premiums will be withheld from the back pay award. Example: Employee dies after being separated. It was later determined she was erroneously separated and back pay was ordered. FEGLI premiums should be deducted from the back pay award. 12/7/2017 Integrity - Service - Innovation 15

16 Federal Employees Group Life Insurance (FEGLI), continued Employee was Suspended or Separated, had Option C, and Family Member Died: If the employee had Option C coverage and was erroneously suspended or separated, and a family member dies during the back pay period, premiums should be withheld from the back pay award. No Erroneous Separation or Suspension, but Employee gets Retroactive Promotion: Example: Employee was not erroneously separated or suspended without pay. Employee won a retroactive promotion case. Both employee and employer FEGLI premiums are owed. The employee must pay the premiums at the higher rate-the difference in premium amount should be offset from the back pay award. References: 5 C.F.R (e); see also DoDFMRVol. 8, ch.11 at para and ch.6 at /7/2017 Integrity - Service - Innovation 16

17 Did the Employee have Outside/Interim Earnings? If the employee worked during the back pay period, a copy of all pay stubs, 1099s or W2s should be submitted as documentation including unemployment benefits received. Official Letter from Office of Personnel Management (OPM) if retirement annuities have been paid and will need to be collected or a 1099-R Unemployment statement or a 1099-G W2, 1099, LES/pay stub, and/or Schedule C for all applicable outside employee earnings 12/7/2017 Integrity - Service - Innovation 17 12/7/2017 Integrity - Service - Innovation 17

18 Unemployment Compensation Requirements/Workers Compensation If in a state that requires pay back of unemployment wages, copies of the unemployment benefits statements, or the 1099-G, to include dollar amount, address, and POC, are required. Ensure that the employee understands that an offset of unemployment benefits against the award can reduce their award amount. Workers Compensation (OWCP) benefits are also typically offset from back pay. 12/7/2017 Integrity - Service - Innovation 18 12/7/2017 Integrity - Service - Innovation 18

19 OPM Annuity Offsets Requirements If the employee received annuity payments during the back pay period, a statement from OPM is required to reflect the amount to collect for the erroneous annuity payment. Payroll is required to submit repayment of the annuity directly to OPM via payroll offset. If monies are insufficient, the agency will be charged and employee will be indebted to repay agency. 12/7/2017 Integrity - Service - Innovation 19

20 OPM Annuity Statement 12/7/2017 Integrity - Service - Innovation 20

21 Lump Sum Leave Repayment Requirements Please note if any lump sum leave was paid out due to the erroneous separation/action, the payroll office will collect this debt from the back pay (pursuant to USC 5551 and 5 CFR ) The annual leave will be restored to the employee. Any annual leave that exceeds the annual leave ceiling will be restored to the proper account following the guidance of 5 CFR /7/2017 Integrity - Service - Innovation 21

22 Precautions when Submitting Settlement Inquiry- Submission Tickets Please submit only one Settlement Inquiry-Submission Remedy ticket per settlement agreement in an effort to avoid duplicate payments. Always use Remedy title Settlements Inquiry- Submission only. Use of multiple titles will increase the risk of duplicate processing. Please ONLY submit interim earnings documents for items that were agreed upon to be deducted from back pay, to avoid erroneous deductions. If you are unsure, please contact your Human Resources office prior to submitting the ticket. 12/7/2017 Integrity - Service - Innovation 22

23 Precautions when Submitting Settlement Inquiry- Submission Tickets Please review the settlement in full prior to submission. If the request pertains to a lump sum payment, an agency must determine the type of lump sum payment owed to the employee in order to submit the payment to the correct DFAS payment processing office. If the payment represents wages, the request for payment must be accompanied by an SF50 and paid as an award. The payment must be submitted to the DFAS Civilian Payroll Office for processing. If the payment is a non-wage payment, such as a lump sum payment for damages or attorney fees, the payment request must be submitted to DFAS vendor pay, or the non-dod agency s own vendor pay office. Finally, be aware that requests for leave restoration in a lump sum amount must have certified timecard corrections that reflect use of hours. DFAS Payroll office is not authorized to restore leave that would NOT have been earned/used during the back pay period identified in the judgement. 12/7/2017 Integrity - Service - Innovation 23

24 Settlement Inquiry- Follow Up Tickets If submitting a Remedy ticket for corrections to a previous settlement payment, please submit a Settlement Inquiry- Follow Up Remedy ticket Please list the prior Remedy ticket number Please indicate the actions that are correct as well as the actions that need correcting. Please provide any necessary documentation If Customer Service Representative/ Human Resources Office has questions regarding a prior Settlement Inquiry remedy ticket, please submit a Settlement Inquiry- Follow Up remedy ticket Please list the prior remedy ticket number. Please provide your questions. Please provide any necessary documentation. 12/7/2017 Integrity - Service - Innovation 24

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