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October 21, 2014

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We have some bad news for you and then some worse news

That was the message of an email missive some state employees received today with the subject line: "Pay reduction, other compensation changes, and retirement rate changes"

And then they learned just what the Legislature and Gov. Brian Sandoval had done to them:

Legislatively Mandated Pay Reduction (LMPR)

Senate Bill 505 in the 2011 Legislature implemented a 2.5% pay reduction for classified, unclassified and non-classified state employees effective July 1, 2011. The compensation schedules are currently being revised by the Department of Personnel and will be distributed upon completion.

Longevity Pay and Merit Pay Increases Suspended

Longevity pay – Per AB 560 of the 2011 Legislature, longevity pay for the period of July 1, 2011 through June 30, 2013 has been suspended and will not be paid.

Merit Salary Increases (MSI) – Per AB 560 of the 2011 Legislature, state employees (if normally eligible) will not be receiving MSIs from July 1, 2011 through June 30, 2013.

Holiday and Other Compensation Changes

AB 560 of the 2011 Legislature reduces the holiday premium pay (PHPRM) entitlement from time and one-half to simply straight time. This change will be effective July 1, 2011. Employees will be paid at this revised rate for time recorded to PHPRM after this date.

The Personnel Commission has also approved the elimination of certain comp-time accrual events. This includes call back (ACALL, ACALX), holiday premium (AHPRM), and standby (ASNTD). Therefore, for time recorded on June 27, 2011 and after, employees can only receive pay for call back, standby, and holiday premium events.

July 11, 2011 Retirement Rate Changes

PERS has implemented increased contribution rates effective the first retirement reporting period of July 2011. These new rates will be effective July 11, 2011.

Employee/Employer Contribution Plan: Regular Members– Increase contribution rate to 12.25% (from 11.25%)

Employer-Pay Contribution (EPC) Plan: Regular Members– Increase contribution rate to 23.75% (from 21.5%)

Furloughs

All full-time state employees will be required to take 48 furlough hours per fiscal year during the upcoming biennium, and part-time employees will take the equivalent proportionally to the requirement for a full-time employee. DETR's revised Furlough Policy & Procedures is currently under revision and will be distributed later this week.

If you have any questions, please contact our main Human Resources . Thank you.

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