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Frequently Asked Questions

 

 

What is Savings Plus?What is Savings Plus?<p>"Savings Plus" is the name of the state’s sponsored 457(b) and 401(k) retirement plans available to most State of California employees. These plans allow you to invest in your future by building a retirement savings account using payroll deductions that go into investments you select from the diverse Savings Plus fund lineup.</p>
What is the difference between a pre-tax and a Roth (after-tax) deferral?What is the difference between a pre-tax and a Roth (after-tax) deferral?<p>Pre-tax deferrals reduce your taxable income the year contributed while Roth deferrals are made on an after-tax basis giving you the contributions and accumulated balance as tax free income during retirement (provided that the withdrawal is made due to attainment of age 59½, death, or disability and the withdrawal is made 5 years or more after January 1 of the first year the Roth contribution was made.)</p>
What do I need to do to transfer my future leave accruals to Savings Plus? What do I need to do to transfer my future leave accruals to Savings Plus? <p>​If you are an excluded employee with a leave balance in excess of 640 hours as of December 1, 2016, complete the irrevocable <a href="/pmd/Documents/CalHR-271.pdf">Transfer Future Leave Accruals to Savings Plus</a> form. The form must be submitted to your Human Resources Office by December 31, 2016. </p>
What happens if on my form I elect 80 hours to transfer to Savings Plus but in April my department notifies me that the department is offering less hours (20 hours) of leave buy-back? What happens if on my form I elect 80 hours to transfer to Savings Plus but in April my department notifies me that the department is offering less hours (20 hours) of leave buy-back? <p>​If the Program is offered for an amount less than you elected (20 hours), only 20 hours will transfer to Savings Plus in accordance with your election based upon the following hierarchy: (1) 457(b) pre-tax, (2) 401(k) pre-tax, (3) 457(b) Roth, and (4) 401(k) Roth in accordance with your election until each plan and deferral type you elected is satisfied. The excess hours (60) will be available for use. </p>
If I elect 40 hours to transfer to Savings Plus and in April my department allows 80 hours of leave buy-back, can I increase my election?If I elect 40 hours to transfer to Savings Plus and in April my department allows 80 hours of leave buy-back, can I increase my election?<p>​Your initial election to transfer 40 hours to Savings Plus is irrevocable and will be processed as requested. However, you can request up to the additional 40 hours as a cash payment.</p>
Why must I make an election in December for hours I will earn January – May?Why must I make an election in December for hours I will earn January – May?<p>​Due to Constructive Receipt Laws, the Internal Revenue Service (IRS) only allows you transfer future leave accruals to Savings Plus.</p>
What if I change departments and the new department does not offer the Program or approves a different amount?What if I change departments and the new department does not offer the Program or approves a different amount?<p>​If your new department does not offer the Program your election becomes null and void and your leave accruals will be available for you to use.</p><p><br>If your new department does offer the Program but for a lesser amount, only the lesser amount will be transferred to Savings Plus.<br> <br>If your new department does offer the Program but for a greater amount, you will not be able to increase the amount you elected to transfer. However, you can submit a separate request to receive a cash payment for the additional hours offered.</p>
If I leave a department that does not offer the Program and transfer to a department that does, will I be able to participate in the Program?If I leave a department that does not offer the Program and transfer to a department that does, will I be able to participate in the Program?<p>All election forms requesting to transfer future leave accruals to Savings Plus must be submitted by December 31. If your appointment to your new department is prior to December 31 and you submit your form timely the transfer request will be processed.</p>
If I need to take an extended leave of absence that uses up all my existing leave accruals, can I get the hours I elected to transfer to Savings Plus back if they have not been transferred?If I need to take an extended leave of absence that uses up all my existing leave accruals, can I get the hours I elected to transfer to Savings Plus back if they have not been transferred?<p>​Your election to transfer leave accruals to Savings Plus is irrevocable. However, if you have a qualifying unforeseen emergency (applicable for the 457(b) plan) or a hardship (applicable for the 401(k) Plan) and need to withdrawal funds from Savings Plus you may submit an emergency or hardship withdrawal request form to request funds on deposit.</p>
What if I elect 80 hours in December but do not have enough hours between January – May to cover the 80 hours?What if I elect 80 hours in December but do not have enough hours between January – May to cover the 80 hours?<p>​If you do not accrue the 80 hours you elected, you will only be able to transfer the number of hours you accrue during the period of January – May. </p>
When will the leave accruals I elected to transfer to Savings Plus show up in my Savings Plus account?When will the leave accruals I elected to transfer to Savings Plus show up in my Savings Plus account?<p>​The cash value of the leave accrual transfers will post as a one-time lump sum deposit at the end of June or in early July.</p>
Can I transfer my leave accruals to a 401(k) Plan, but start contributing to a 457(b) Plan?Can I transfer my leave accruals to a 401(k) Plan, but start contributing to a 457(b) Plan?<p>​Yes, you can transfer your leave accruals to one Plan and start contributing to the other plan. However, you will pay an administrative charge of $1.50/month for each plan account.</p>
If I already have a 401(k) Plan can I add the leave accruals back to my existing account?If I already have a 401(k) Plan can I add the leave accruals back to my existing account?<p>​Yes, all transfers will be deposited into your existing account. You are responsible for ensuring the value of your leave accruals plus any regular contributions do not exceed the annual IRS limit. The current limit if you are age 49 or less is $18,000 per plan. If you are age 50 or older the limit is $24,000 per plan. If you do not have an account then one will be established for you.</p>
What will happen if I submit my form electing to transfer vacation leave to Savings Plus and then switch to annual leave?What will happen if I submit my form electing to transfer vacation leave to Savings Plus and then switch to annual leave?<p>​If you switch your leave type, your leave type for transfers to Savings Plus will change accordingly.</p>
May I participate as a current rank and file employee?May I participate as a current rank and file employee?<p>​The option to transfer leave accruals into Savings Plus is currently only available to excluded employees that have a vacation or annual leave balance in excess of 640 hours as of December 1, 2016.</p>
How can I determine if the value of my leave accrual transfer plus my current contributions will exceed the annual contribution limit?How can I determine if the value of my leave accrual transfer plus my current contributions will exceed the annual contribution limit?<p>​If you are already contributing the maximum amount to each plan [457(b) and 401(k)], you may not participate in this transfer option. However, you can calculate the value of your leave accruals by multiplying your hourly wage times the number of hours you elect to transfer. Then add that value to your current annual contributions to Savings Plus. If you are age 49 or less, the limit is $18,000 per plan. If you are age 50 or over, the limit is $24,000 per plan. </p>
What mechanism does Savings Plus have in place to ensure I do not over-defer?What mechanism does Savings Plus have in place to ensure I do not over-defer?<p>​Employees are responsible for monitoring their contribution limits. However, if you do over- defer you will receive a refund of the over-deferred amount and the applicable earnings prior to April 15 of the following year.</p>
My spouse is relatively new to state employment and has less than 640 hours of vacation. Since I have around 1,000 vacation hours, may I transfer some of my hours to my own Savings Plus account and additional hours to his Savings Plus account?My spouse is relatively new to state employment and has less than 640 hours of vacation. Since I have around 1,000 vacation hours, may I transfer some of my hours to my own Savings Plus account and additional hours to his Savings Plus account?<p>The IRS only allows you to transfer accrued leave to your own account.</p>
May I transfer my old Personal Leave Program (PLP) accruals?May I transfer my old Personal Leave Program (PLP) accruals?<p>​Only vacation and annual leave accruals may be transferred to Savings Plus.</p>
May I transfer future sick leave accruals?May I transfer future sick leave accruals?<p>​Sick leave is not an eligible leave type for this program. Only vacation and annual leave accruals are eligible.</p>
How will the value of my leave accruals be invested (in which fund?)How will the value of my leave accruals be invested (in which fund?)<p>​If you have an existing Savings Plus account, your assets will be invested in accordance with the current contribution allocation you have on file for that plan. <br> <br>If you do not have an existing Savings Plus account, Savings Plus will establish an account for you or if you are opening up an account in the other plan, your initial transfer will be invested in the Target Date Income Fund and will remain in that fund until you modify your investment election. Fund Fact Sheets are located in the “Enroll” tab at savingsplusnow.com in the “My Investment Options” section. You may transfer your assets to any Savings Plus investment fund without a charge.</p>
Are taxes withheld from the transfer? (Updated)Are taxes withheld from the transfer? (Updated)<p>Due to unforeseen circumstances the SCO manually processed the transfer requests. The manual process resulted in a small residual check. Your paystub reflects the corresponding taxation related to the transfer and the net check amount issued to you. <br> <br>For a pre-tax transfer, the amount transferred to Savings Plus was not taxed and will not be reported as taxable income (as previously communicated). The funds were treated in the same manner as standard contributions to Savings Plus. The transfer of leave credits to Savings Plus must be processed as a payment and then the deduction to Savings Plus is applied. The gross amount of pay that issues is subject to Social Security and Medicare tax withholdings and the Social Security and Medicare tax withholding amount is subject to federal and state taxes. For this reason taxes were withheld and employees received a small residual check. <br> <br>For a Roth after-tax transfer, mandatory taxes were withheld from the transfer amount. The payment was not subject to deductions for retirement; however, the following mandatory deductions were withheld: Federal, State, Social Security, and Medicare tax withholdings. <br> <br>The tax rates for the Leave Buy-Back are as follows: <br>25% Federal Tax (flat rate) <br>6.6% State Tax (flat rate) <br>6.2% Social Security (if applicable) <br>1.45% Medicare (if applicable) OR <br>2.35% Medicare for wages over $200,000 (if applicable)</p>
What happens if I turn in the paperwork timely, but my Personnel Office does not process the request because they do not have enough funding?What happens if I turn in the paperwork timely, but my Personnel Office does not process the request because they do not have enough funding?<p>​If your department does not participate in the Program, your request becomes null and void and all hours marked to be transferred to Savings Plus will be available for use.</p>
If I have 650 hours, can I only elect to transfer 10 hours to Savings Plus?If I have 650 hours, can I only elect to transfer 10 hours to Savings Plus?<p>​There is no minimum amount. You may elect to transfer up to the lesser of the accruals you will earn during January - May of the following year or 80 hours. If your leave balance falls below the 640 hours after December 1, your request will still be processed. </p>
Is there a cost or a fee to transfer my leave accruals to Savings Plus? If so, how is the fee calculated?Is there a cost or a fee to transfer my leave accruals to Savings Plus? If so, how is the fee calculated?<p>​There is no cost or fee to transfer to Savings Plus.</p>
Is this transfer considered the same as a rollover to Savings Plus?Is this transfer considered the same as a rollover to Savings Plus?<p>​A transfer of leave accruals is not considered a rollover. A rollover does not count toward your annual contribution limits. However a transfer of leave accruals to Savings Plus does count towards your annual limits. </p>
If I elect to transfer 40 hours of my vacation or annual leave, how will the hours be displayed on my paycheck stub?If I elect to transfer 40 hours of my vacation or annual leave, how will the hours be displayed on my paycheck stub?<p>​Your vacation or annual leave accruals will continue to show on your paycheck stub; however, these hours will not be available for you to use.</p>

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01. What happens when a department nears the end of its initial delegation period?01. What happens when a department nears the end of its initial delegation period?<p>​CalHR’s Personnel Management Division (PMD) will initiate renewal of delegation agreements prior to the end of the initial delegation period for each department that has shown a satisfactory pattern of compliance with delegation requirements. A department demonstrates a satisfactory pattern of compliance when it: <br> <br><br>Regularly submits complete and accurate monthly reports on time;<br><br>Stays within its PMD-approved salary cap;<br><br>Exercises good judgment and adheres to applicable laws, rules, principles and policies;<br><br>Responds to PMD requests for supporting documentation of any action taken with its delegated authority;<br><br>Cooperates with PMD direction when “spot audits” reveal areas for improvement;<br><br>Keeps lines of communication open with its PMD consultant; and<br><br>Submits departmental organizational charts annually.</p>
02. Will new Delegation Agreements have to be signed each time one of the signatories changes? 02. Will new Delegation Agreements have to be signed each time one of the signatories changes? <p>​PMD anticipates annual re-signing of Delegation Agreements will typically be sufficient to update signatories. If significant turnover of multiple signatories in a department creates the need, PMD may opt to refresh the Delegation Agreements before the regular annual renewal. </p>
03. When are reports due and what period should they cover?03. When are reports due and what period should they cover?<p>​Reports are due by the 10th of each month, covering the reporting period of the prior calendar month (e.g., the report due on August 10th covers the month of July). Reports must be submitted by email in Excel format to the department’s assigned PMD consultant with a copy to the Delegation.Project@calhr.ca.gov inbox.</p>
04. Will monthly reporting via emailed spreadsheets to PMD continue indefinitely?04. Will monthly reporting via emailed spreadsheets to PMD continue indefinitely?<p>​PMD is working to create an online reporting portal to replace the current email and spreadsheet process. Our hope is to offer this functionality by the end of 2015.</p>
05. When are organizational charts due for delegated departments?05. When are organizational charts due for delegated departments?<p>​As stated in the Exceptional Allocation Delegation Agreement, annual submission of departmental organizational charts is required by January 1st.</p>
Does a delegated department have to contact the State Controller’s Office when an unlawful appointment will stand?Does a delegated department have to contact the State Controller’s Office when an unlawful appointment will stand?<p>​No. As no action needs to be taken on the employee’s work history, the final determination letter does not need to be sent to the State Controller’s Office.</p>
Does an unlawful appointment have to be voided before the one-year statute elapses?Does an unlawful appointment have to be voided before the one-year statute elapses?<p>​No. The “action” referred to in Government Code 19257.5 means that the final determination letter must be dated and mailed one day before the one-year anniversary of the unlawful appointment effective date. PMD recommends mailing unlawful appointment determination letters with a certified “return receipt.”</p>
Does delegation allow departments to exceed the Attorney IV allocation ratios found in the Bargaining Unit 2 Memorandum of Understanding (MOU)?Does delegation allow departments to exceed the Attorney IV allocation ratios found in the Bargaining Unit 2 Memorandum of Understanding (MOU)?<p>​Yes. The Bargaining Unit 2 MOU permits PMD to approve Attorney IV positions in excess of the allocation ratios. Prior to delegation, departments submitted requests for such positions to PMD using form STD. 625 because Attorney IV positions in excess of the allocation ratios found in the MOU are considered exceptional allocations. Authority to approve exceptional allocations is now delegated to departments that have valid, signed delegation agreements. If a department uses an Attorney IV as an exceptional allocation, the department must justify and document the allocation, and report it to PMD on the monthly reporting worksheet.</p>
Does the CEA salary cap include “comma CEAs” or pay differentials?Does the CEA salary cap include “comma CEAs” or pay differentials?<p>​No. The CEA salary cap is limited to classification code 7500 CEAs and does not include any pay differentials received by the CEAs. Pay differentials are not counted for or against the CEA salary cap.</p>
Government Code 19757 states that CalHR “may” void an unlawful appointment if action is taken within a year from the appointment. Does the word “may” imply that delegated departments have the discretion not to void an unlawful appointment?Government Code 19757 states that CalHR “may” void an unlawful appointment if action is taken within a year from the appointment. Does the word “may” imply that delegated departments have the discretion not to void an unlawful appointment?<p>​No. Delegated departments do not have the discretion to “ignore” an unlawful appointment when they become aware of it. By signing the Unlawful Appointment Investigation Delegation Agreement, delegated departments agree to “comply with the laws and rules governing equitable administration of the civil service merit system.” CalHR’s training website provides more information on the merit system.</p>
How can a CEA be vacant for five years when Government Code 12439 sweeps vacancies after six months? How can a CEA be vacant for five years when Government Code 12439 sweeps vacancies after six months? <p>​Government Code 12439 applies to positions. The “CEA concept” is distinct from the position. The CEA concept comprises the body of duties and scope of policy responsibility that the State Personnel Board (SPB) approved as meeting the CEA category definition. A CEA concept itself is not tied to a particular position at the time of its establishment by the five-member board. If a department loses the funding for a vacant CEA position after six months, that sweep of funds does not remove the authority SPB granted the department to have a person in the CEA classification perform that specific body of work. In other words, the concept survives even if funding changes.</p>
How is a “truly exceptional allocation” different from a misallocation?How is a “truly exceptional allocation” different from a misallocation?<p>​A “truly exceptional allocation” exists when there is some unique aspect to the duties and responsibilities of a position that make its classification the “best possible fit” but not a “perfect fit” for the work normally performed in that classification. A misallocation exists when a different classification in state service better fits the duties of the position.</p>
How long will PMD allow an inactive or vacant CEA concept to count toward the department’s CEA salary cap?How long will PMD allow an inactive or vacant CEA concept to count toward the department’s CEA salary cap?<p>​PMD considers a CEA concept to be “inactive” if it remains unfilled for six months or more. Inactive CEA concepts continue to count toward the CEA salary cap for up to five years. When a CEA concept has been unfilled for five years, CalHR considers the CEA concept “abolished” by default and will no longer count that CEA concept toward the department’s CEA salary cap. </p>
If a delegated department discovers a potential unlawful appointment before it has been keyed but after the employee has begun working, should the department knowingly key the unlawful appointment?If a delegated department discovers a potential unlawful appointment before it has been keyed but after the employee has begun working, should the department knowingly key the unlawful appointment?<p>​If the employee is new to state service, yes, the department may have to key the unlawful appointment in order to pay the employee for the work already performed. If the employee is already a state employee, the department may be able to use alternative means, such as an out-of-class assignment, to pay the employee for the work performed rather than knowingly keying an unlawful appointment. If a department has other means to pay the employee but knowingly keys the unlawful appointment anyway, the appointment will likely be considered to have been made in bad faith by the department.</p>
If a delegated department discovers a potential unlawful appointment of an employee into a limited-term position, should the department simply terminate the limited-term appointment?If a delegated department discovers a potential unlawful appointment of an employee into a limited-term position, should the department simply terminate the limited-term appointment?<p>​No. The department must investigate the potential unlawful appointment and then take action as it would for any other unlawful appointment. Terminating the limited-term appointment alone does not void the appointment and could inappropriately enable the employee to use the limited-term unlawful appointment experience to qualify for promotional examination and appointments. </p>
If a delegated department discovers a potential unlawful appointment of its current or potential employee that occurred at another department in the past, how should that investigation be handled?If a delegated department discovers a potential unlawful appointment of its current or potential employee that occurred at another department in the past, how should that investigation be handled?<p>​Delegated departments do not have authority to investigate other departments’ unlawful appointments. The discovering department should inform its PMD consultant and PMD will refer the matter to the appropriate department for investigation.</p>
If a delegated department discovers an unlawful appointment that is beyond the one-year statute, does it still have to investigate and send notification letters to the employee?If a delegated department discovers an unlawful appointment that is beyond the one-year statute, does it still have to investigate and send notification letters to the employee?<p>​Yes. Once a delegated department has discovered a potential unlawful appointment, even if it is more than one year old, the department has a responsibility to investigate and resolve the potential unlawful appointment. This is the same standard that PMD and SPB upheld prior to delegation. The one-year statute of limitations on unlawful appointments found in Government Code 19257.5 applies only to appointments made and accepted in good faith. Therefore, an investigation must still be conducted to determine whether good faith existed when the appointment was made and accepted. If the appointment was not made and accepted in good faith, the one-year statute of limitations does not apply and the appointment must be voided under California Code of Regulations, Title 2, Section 266.</p>
If a department converts a CEA position to an Exempt, how should that be handled on the monthly report to CalHR and how does that impact the CEA salary cap?If a department converts a CEA position to an Exempt, how should that be handled on the monthly report to CalHR and how does that impact the CEA salary cap?<p>​When a CEA position is converted to an Exempt, PMD may issue an addendum that lowers the department’s overall salary cap by removing the converted CEA concept. The department should not use the salary cap dollars associated with that converted CEA concept to enable increases for the other remaining CEAs. Contact the department’s assigned PMD consultant for further instruction.</p>
If a department has signed a delegation agreement, under what circumstances would it still have to submit a form STD. 625 and justification to PMD?If a department has signed a delegation agreement, under what circumstances would it still have to submit a form STD. 625 and justification to PMD?<p>​Circumstances in which a delegated department must still submit a STD. 625 form to PMD include, but may not be limited to, the following:<br> <br>To request an exception to the 180-day retired annuitant waiting period, per PML 13-001.<br>To request use of another department’s department-specific classification.<br>To use a Peace Officer/Firefighter (POFF) or Safety retirement classification in a new or different way from what PMD previously approved.<br>To comply with a PMD consultant’s request to “spot-audit” the documentation justifying any reported exceptional allocation.</p>
If a department previously received approval via form STD. 625 for use of a class that was restricted under PML 2007-026 or by its MCR code, do the positions have to be reported on the exceptional allocation worksheet?If a department previously received approval via form STD. 625 for use of a class that was restricted under PML 2007-026 or by its MCR code, do the positions have to be reported on the exceptional allocation worksheet?<p>​Delegated departments must report all truly exceptional allocations to PMD, even if original approval to use the exceptional allocation came from PMD prior to delegation. If a department uses a class that was formerly restricted either by PML 2007-026 or by its MCR code in a way that meets the typical allocation standards, that position is not considered a truly exceptional allocation and should not be reported on the monthly worksheet.</p>
If a department realizes a position has been a long-time exceptional allocation, but cannot find records that PMD approved it prior to delegation, should the department still report this on its monthly reporting worksheet?If a department realizes a position has been a long-time exceptional allocation, but cannot find records that PMD approved it prior to delegation, should the department still report this on its monthly reporting worksheet?<p>​Yes. If a department has no documentation that PMD previously approved an exceptionally allocated position, the department must still report the position on the monthly reporting worksheet, with an approximate date of its original approval. In addition, to be compliant with PMD expectations for delegation audit purposes, the department must internally generate a new justification package to properly document the exceptional allocation. Once the new justification package is completed, the approval date by the personnel officer will be the date approved under delegated authority.</p>
If a department routinely uses another department’s classification, does it have to treat each one as an exceptional allocation?If a department routinely uses another department’s classification, does it have to treat each one as an exceptional allocation?<p>​Yes. PMD considers each position use to be an exceptional allocation because the borrowed classification was designed and created for use in the “owning” department. Any use outside of the owning department is considered exceptional. Delegated departments must document each use of another department’s classification as an exceptional allocation, which includes reporting them to PMD on the monthly exceptional allocation reporting worksheet. This information will assist PMD in determining whether department-specific classifications may be more appropriately broadened to a service-wide classification. PMD may make exceptions to this requirement on a case-by-case basis to ensure efficiency.</p>
If there is overlap between an outgoing CEA and his/her replacement, does this impact the salary cap?If there is overlap between an outgoing CEA and his/her replacement, does this impact the salary cap?<p>​​To address the critical need for succession planning, departments may allow an overlap of employees in a CEA concept while the outgoing incumbent orients and mentors the new appointee. The duration of the overlap for such knowledge transfer may last up to four months. During the overlap period, departments should put the new appointee’s name in the incumbent column of the monthly CEA reporting worksheet, and put the outgoing CEA incumbent’s name in the comments column of the report, with a note indicating the overlap is due to knowledge transfer. Only the new appointee’s salary will be counted against the department’s cap during that period.</p>
Is the new Attorney V classification considered an exceptional allocation?Is the new Attorney V classification considered an exceptional allocation?<p>​No. Uses of the Attorney V classification for positions that meet the classification specification and allocation guidelines (HR NET access required) are not considered exceptional allocations and do not have to be reported on the monthly reporting worksheet.</p>
Is the new Information Technology (IT) Specialist III classification automatically considered an exceptional allocation? It is designated as MCR 0.Is the new Information Technology (IT) Specialist III classification automatically considered an exceptional allocation? It is designated as MCR 0.<p>​No. Uses of the IT Specialist III classification for positions that meet the classification specification and allocation guidelines (HR NET access required) are not considered exceptional allocations and do not have to be reported on the monthly reporting worksheet.</p>
Is the use of the Staff Services Manager I (SSM I) classification in a specialist (non-supervisory) capacity an exceptional allocation that should be reported to PMD as a requirement of the delegation agreement?Is the use of the Staff Services Manager I (SSM I) classification in a specialist (non-supervisory) capacity an exceptional allocation that should be reported to PMD as a requirement of the delegation agreement?<p>​Yes. Although the SSM I classification specification does mention a non-supervisory concept, the primary use of the classification is as a supervisor, with the specialist being used rarely and as an exception to the standard, intended use of the classification. Therefore, delegated departments using the SSM I class in a specialist capacity must write a justification memo for the allocation, obtain internal departmental personnel officer approval of the truly exceptional allocation using the STD. 625 form, and must report the exceptional allocation to PMD on the monthly reporting worksheet. The same applies to the SSM II classification used as a specialist. Refer to Pay Scale Section 2 for more information on the appropriate collective bargaining identifier for a supervisory classification used as a specialist.</p>
May a delegated department increase the pay of a CEA more than five percent annually?May a delegated department increase the pay of a CEA more than five percent annually?<p>​Yes. A delegated department may provide a CEA an increase of greater than five percent if the department can accommodate the increase without exceeding its PMD-established salary cap. However, a five percent increase is a best practice that helps departments maintain equity and enables departments to consider future CEA salary movement needs while remaining within the established salary cap. The department must justify and document its internal approval of the salary exception using the CalHR 881 form for its records and in case of an audit. Departments must manage their own CEA salary program responsibly within their salary cap. Per the CEA Delegation Agreement, CEA salary adjustments made under delegated authority shall not result in increases to the department’s budget or to the department’s overall CEA salary cap.</p>
May a delegated department negotiate pay for a new CEA candidate other than as defined in California Code of Regulations (CCR), title 2, Section 599.991?May a delegated department negotiate pay for a new CEA candidate other than as defined in California Code of Regulations (CCR), title 2, Section 599.991?<p>​Yes. A delegated department may negotiate pay upon appointment of a CEA in excess of what is described in CCR 599.991 if the department can accommodate the increase without exceeding its PMD-established salary cap. The department must justify and document its internal approval of the salary exception using the CalHR 881 form for its records and in case of an audit. Departments must manage their own CEA salary program responsibly within their salary cap. Per the CEA Delegation Agreement, CEA salary adjustments made under delegated authority shall not result in increases to the department’s budget or to the department’s overall CEA salary cap.</p>
May a delegated department pay a CEA above its level?May a delegated department pay a CEA above its level?<p>​Yes. A delegated department may pay a CEA above the max of its level if the department can accommodate the increase without exceeding its PMD-established salary cap. The department must justify and document its internal approval of the salary exception using the CalHR 881 form for its records and in case of an audit. Departments must manage their own CEA salary program responsibly within their salary cap. Per the CEA Delegation Agreement, CEA salary adjustments made under delegated authority shall not result in increases to the department’s budget or to the department’s overall CEA salary cap.</p>
May a delegated department pay a CEA above the max of Level C even if it is not an attorney, engineer or physician?May a delegated department pay a CEA above the max of Level C even if it is not an attorney, engineer or physician?<p>​Yes. A delegated department may pay a CEA that is not an attorney, engineer or physician above the max of Level C (into what has historically been considered the “restricted zone”) if the department can accommodate the increase without exceeding its PMD-established salary cap. (As of June 9, 2015, the maximum of the CEA pay range is $14,058 per month. This may be adjusted in the future as a result of general salary increases.) The department must justify and document its internal approval of the salary exception using the CalHR 881 form for its records and in case of an audit. Departments must manage their own CEA salary program responsibly within their salary cap. Per the CEA Delegation Agreement, CEA salary adjustments made under delegated authority shall not result in increases to the department’s budget or to the department’s overall CEA salary cap.</p>
May a department hire a retired annuitant into the CEA classification if that retired annuitant was a CEA prior to retirement?May a department hire a retired annuitant into the CEA classification if that retired annuitant was a CEA prior to retirement?<p>​A retired annuitant should only be appointed to a class that is appropriate for the duties to be performed. Per the Classification and Pay Guide, Section 400, a retired annuitant may only be appointed to a CEA position if the position’s concept has been established by the State Personnel Board and the retired annuitant is to perform the specific approved duties of that CEA concept. A retired annuitant must have reinstatement eligibility for any classification to which he or she is appointed, as outlined under Government Code 19144. PMD recommends making any such appointment as brief in duration as possible to meet organizational needs.</p>
Should a department include known “misallocations” on its monthly exceptional allocation reporting worksheet?Should a department include known “misallocations” on its monthly exceptional allocation reporting worksheet?<p>​No. Delegated departments should not list known “misallocations” on the monthly exceptional allocation reporting worksheet. A misallocation is not the same as an exceptional allocation. If a department knows it has a misallocated, filled position, the department must contact its PMD consultant to discuss corrective options.</p>
When a new CEA is established, is the department’s CEA salary cap adjusted?When a new CEA is established, is the department’s CEA salary cap adjusted?<p>​Yes. PMD will issue an addendum to the delegation agreement, amending the salary cap to accommodate the new CEA. Departments must complete the CalHR 881 form, including the proposed level and salary, and submit the new CEA request package to the assigned PMD consultant to establish a new CEA. Once the new CEA is approved, the department will receive a salary cap addendum.</p>
When an unlawful appointment is voided, may the employee still use the experience gained in the unlawful appointment to apply for other examinations or to count toward movement to a higher alternate range?When an unlawful appointment is voided, may the employee still use the experience gained in the unlawful appointment to apply for other examinations or to count toward movement to a higher alternate range?<p>​No. When voided, the unlawful appointment is treated as if it never occurred for all aspects of the appointment except what is defined as “compensation” by California Code of Regulations, Title 2, Section 9. “Compensation” as used in Government Code Section 19257 does not include tenure in a position, seniority credits, permissive reinstatement, eligibility, mandatory reinstatement rights, eligibility to take promotional examinations, career credits, permanent or probationary status and service toward completion of the probationary period; nor continuity of service when used to determine the employee's right to or eligibility for any of the foregoing.</p>
When does compaction with a CEA occur, and what are the considerations?When does compaction with a CEA occur, and what are the considerations?<p>​CalHR’s historical policy and past practice has been that compaction exists where a CEA’s negotiated maximum salary is not 2.5% to 5% greater than the maximum salary of the highest subordinate classification reporting to the CEA. <br><br>In addition to the compaction differential listed above, per the CEA Delegation Agreement, there are additional considerations that need to be made in order to confirm that a compaction differential is appropriate:</p><p> </p><ol><li>Salary compaction for a CEA only occurs in cases where the CEA carries the same technical/professional responsibility, including the possession of the required licensure/certifications, as the employee(s) who report directly to them. For example, if a CEA is only providing administrative oversight, it would not be appropriate to provide the CEA a salary increase based on compaction with a higher paid subordinate classification.</li><li>Departments shall not intentionally create salary compaction via a reorganization or other means to inflate the level allocation or salaries if there is no documented, legitimate business need driving the reorganization or request.</li><li>A CEA may report to a CEA of the same level as long as a compaction differential of at least 2.5% to 5% is maintained, and all other compaction considerations are met.<br></li></ol><p>If a department is seeking a salary increase for a CEA due to compaction, and are not requesting an increase to their CEA salary cap, departments shall document the increase on the CalHR-881 and report the increase on their Delegation Report. </p><p> </p><p>If a department is seeking a salary increase for a CEA due to compaction, and are also requesting an increase to their CEA salary cap, departments shall send the request to their PMD Consultant for approval. The request should include the completed CalHR-881, the current organization chart, and the proposed organization chart (if applicable). CalHR may approve a higher negotiated maximum salary due to compaction.</p><p><br>If you are considering a salary adjustment due to compaction, please contact your PMD Consultant for further information.</p>

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