Calculating Pay Plan Reserve Requests
GS 143C-4-9 established the Pay Plan Reserve to assist agencies in funding statutory
and experience-based salary schedule pay expenses on an as-needed basis. Per SL
2023-134, Section 39.19, this job aid details the process that agencies will use to verify
their need from the Pay Plan Reserve to OSBM.
1) Assemble Data on Pay Plan Employees
Agency HR staff must compile the following information for employees subject to the Pay
Plan, and send it to agency budget staff:
• Personnel Number
• Position Number
• Budget Fund
• Salary as of July 1, 2023, after Legislative Increase (LI)
• Salary after Adjustment for Step Increase
• Anniversary Date (e.g., date hired in pay plan position, date sworn-in, etc.)
• Month to Receive Step Increase
2) Determine Total Amount of Step Increase
The value of the step increase is equal to the cost of the pay plan in the current year (FY
2023-24) with positions at their new step minus the cost of pay plan in the current year
(FY2023-24) with positions at their prior step.
Agency budget staff will calculate the total funding required to support all step increases,
including benefits (FICA, retirement, longevity), within a budget fund.
Calculation
Step Increase Amount = Salary and benefits after Adjustment for Step increase –
Salary as of July 1 after LI
3) Determine Salary Needed for Remaining Step Increases
To calculate salary needed for remaining step increases in a fiscal year, run the B0149:
Position by Funding Source report in BEACON/Fiori Business Objects. This report
provides a list of employee salaries ‘as of’ a particular month and year. Subtract these
salaries from the “Salary after Adjustment for Step” to determine the “Estimated Salary
Needed for Remaining Step Increases.”
Calculation
Estimated Salary Needed for Remaining Step Increases = Salaries after Adjustment
for Step – B0149 Employee Salaries
If the calculation yields zero, this employee did not experience a step increase and will
not require additional funds. If the calculation yields a dollar amount, this is the amount
required to support the step increase in the new fiscal year or “Estimated Salary Needed
for Remaining Step Increases.”
4) Determining Available Salary Reserves
Agency staff will also verify the salary reserves within a budget fund, as available
reserves will offset the amount requested from the Pay Plan Reserve.
To determine a budget fund’s available salary reserves, agencies must access the IBIS
Salary Control module. First, select the relevant agency. Second, select the previous
fiscal year. Third, review by budget fund. This will display the balance of salary reserves
as of the end of the previous fiscal year.
Finally, using the same parameters, review salary reserve balances at the time of
analysis to determine current reserve levels.
5) Determine Amount of Salary Reserves Allowed to Retain Non-Pay Plan FTE
within the Same Budget Fund as Pay Plan FTE (if applicable)
If the agency has non-Pay Plan employees in the same budget fund as Pay Plan
employees, it must also calculate the amount of salary reserve to retain for those non-
Pay Plan employees.
To do this, run the B0149: Positions by Funding Source report and export this data to
Excel. Summarize Position Number, Position Title, Sum of FTE, and Sum of Budgeted
Salary in a pivot table.
Use the pivot table to determine the total budgeted salary for non-Pay Plan employees
as well as Pay Plan employees. Calculate what percentage non-Pay Plan employees
are of that total budgeted salary amount.
Lastly, multiply the salary reserves at the start of the fiscal year by that percentage to
determine the amount of salary reserves to retain for non-Pay Plan employees.
Calculations
Total Budgeted Salaries = Salaries of Non-Pay Plan FTE + Salaries of Pay Plan FTE
Percentage Non-Pay Plan Salaries = Salaries of Non-Pay Plan FTE / Total Budgeted
Salaries
Salary Reserve Eligible to Retain = Percentage Non-Pay Plan Salaries x Salary
Reserve at Start of FY
6) Determine Total Amount of Pay Plan Reserve Request
To determine the total amount in the Pay Plan Reserve request, add together the
salary reserves in the budget fund (as of time of analysis) and (if applicable) the amount
to retain for non-Pay Plan employees.
Subtract this total from the Estimated Salary Needed for Remaining Step Increases
to get the Total Salary needed from the Pay Plan Reserve.
Calculate the fringe costs by multiplying the retirement and social security rates by the
Total Salary needed from the Pay Plan Reserve.
S.L. 2023-134 appropriated a non-recurring retirement supplement for FY 2023-24.
Therefore, agencies must use the total retirement rate (R+NR) for year 1 (Column D in
the table below) but only use the recurring retirement rate for year 2 (Column C in the
table below).
Finally, add the total salary amount with the total fringe benefits costs to get the total
amount of the pay plan reserve request.
Calculations
Salary from Pay Plan Reserve = Estimated Salary Needed for Remaining Step
Increases - (Salary Reserve in Budget Fund + Salary Reserve Retained for Non-Pay
Plan FTE)
Social Security = Total Salary Needed from Pay Plan Reserve x 7.65%
Retirement Year 1 = Total Salary from Pay Plan Reserve x Column D
Retirement Recurring Year 2 = Total Salary from Pay Plan Reserve x Column C
Total Pay Plan Reserve Request = Total Salary Needed + Fringe Benefit Cost
A
B
C
D
E
F
System
FY 2022-23
Recurring
Rate
FY2023-24
Recurring
Rate
FY 2023-24
Total Rate
(R+NR)
FY 2023-24
Recurring
Change
FY 2023-24
Non-recurring
Change
TSERS
22.94%
23.82%
25.02%
0.88%
1.20%
LEO
27.94%
28.82%
30.02%
0.88%
1.20%
CJRS
43.63%
39.98%
42.42%
-3.65%
2.44%
ORP
13.56%
13.96%
14.09%
0.40%
0.13%
LRS
28.67%
25.75%
27.79%
-2.92%
2.04%
Note: Columns E and F are used for calculations, the remaining columns are included for informational
purposes only.
Documentation for OSBM
Agencies should provide appropriate documentation to their OSBM Budget Execution
Analyst with any Pay Plan Reserve request. This includes any relevant data and
calculations, including a summary of the request in the following format.
Budget
Fund
Salary
Reserve as
of
MM/DD/YYYY
Salary Amount
Needed for
Already
Implemented
Step Increases
Salary Reserve
Balance (June 30,
prior SFY)
Salary
Reserve
Retained
for Non-
Pay Plan
FTE (if
applicable)
Estimated
Salary
Needed
for
Remaining
Step
Increases
Salary
from Pay
Plan
Reserve
Social
Security
Retirement
Total Pay
Plan Reserve
Request
1XXXXX $0 $45,374 $45,374 $11,986.00 $81,028 $93,014 $7,116 $22,974 $123,104
1YYYYY ($252,980) $1,547,778 $1,294,798 $0 $357,227 $610,207 $46,681 $150,721 $807,609
1ZZZZZ $63,397 $125,524 $188,921 $73,427.00 $177,701 $187,731 $14,361 $46,370 $248,462
