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Wednesday October 1st 2014

“Salary Anomalies” and the Hybrid Retirement Plan

Are you in the Alternate Retirement Program (ARP) and interested in transferring to the Hybrid Retirement Plan but think you have a “salary anomaly?” Do you already have a “salary anomaly” review case pending? If so, please review the following information, including the definition of “salary anomaly.”

There have been obstacles to getting resolution on individual salary anomaly cases, including (1) the need to get “verification of the facts” from your university HR Office, and (2) the inefficiency of the requests being submitted over a lengthy period of time.  SEBAC and the State have agreed to provide the attached form to members that must be completed and signed by staff in the university HR office verifying the facts of your individual case. This will help to expedite the process. In most cases there shouldn’t be any problems, but if staff in the HR office are unwilling to sign the form, please contact Steve Greatorex (greatorexs@ccsu.edu). Once you have your Salary Anomaly Verification form completed, send a copy to Steve Greatorex (greatorexs@ccsu.edu) for submission.

If you have a “salary anomaly” review case pending and have not submitted this form, please do so. Once you have your Salary Anomaly Verification form completed, send a copy to Steve Greatorex (greatorexs@ccsu.edu) for submission. In addition, please sign and submit the Anomaly Request form.

In an attempt to consolidate the many salary anomaly review cases, we would strongly encourage members to get requests in by March 1, 2014, so that the review of these requests can be done in batches and not one at a time.  

Further Information

The definition of salary anomaly is a highly unusual payment which makes it irrational to use the person’s highest year of earnings as a predictor of their final average earnings. For example, there has been the general understanding that things like additional earnings through summer courses are common and can easily occur during the final three years, so they are not an “anomaly” and count towards purchase price. However, a temporary assignment as an acting dean could be considered an anomaly.

As of March 2013, SEBAC Leadership had approved the following guidance for salary anomaly issues:

(1)  One time grants do not count towards the purchase of past service (i.e. should be deducted if it’s in the person’s highest year).  If the grant is in the person’s actual 3 highest for retirement, it won’t count towards Final Average Earnings (FAE).

(2)  For department chairs, current department chairs may not subtract their additional earnings as a “salary anomaly” because they could continue in that role until retirement and therefore it would be in their final pay. However, past department chairs can exclude their pay from their highest year, but if they do so, that pay also would not count towards FAE if that year was in their three highest for FAE purposes.

(3) Summer School Salary is not an “anomaly” (see above).

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