In order to help each
employee better understand how the payroll cycle will impact them,
we have identified by employment classification frequently asked
questions. You may select the classification that best reflects
your employment.
Q:
What is the current pay cycle?
A:
The Board of Regents (BOR) currently pays employees for
all work days within a given month. For example, the July pay
cycle runs from July 1 st through July 31 st . Currently, the
payroll is run approximately 10 days prior to payday. Therefore,
all hours are projected to be worked for the remaining 10 days
and corrections are made if applicable due to employment actions.
Q:
What is the pay cycle change?
A:
The new pay cycle will be from the 22 nd of the month
to the 21 st the following month. Employees who are overtime eligible
will receive a paycheck which reflects actual hours worked within
that period of time.
Q:
Why are we changing the pay cycle?
A:
The change will ensure employees are compensated for
actual hours worked in the current pay period and to be consistent
with the payroll process for other South Dakota state employees
and most private sector employees.
A:
When will this start?
Q:
July 2006
A:
Will payday change?
Q:
No, payday will continue to be the last working day of
each month.
A:
Why is this starting in July?
Q:
The pay cycle change is beginning in July to lessen the
financial impact to employees as July coincides with the anticipated
fiscal year pay increases.
A:
How will this new pay cycle impact my retirement?
Q:
Employees who anticipate retiring after July 1, 2006
will want to visit with their SDRS representative to ensure that
they receive advice on the termination date selected. The
SDRS representative will provide guidance on how the pay cycle
may or may not impact the retirement payment start date.
Our pay cycle will run from the 22nd of the current month through
the 21st of the following month with payment on the last day of
the month. Human Resources will assist in providing a SDRS
contact but SDRS is the state agency that can best answer retirement
questions.
Q:
What if my 55th birthday falls during the 22nd - 31st of the month?
Will this impact my payout amount or age?
A: It won't impact it. SDRS doesn't
look at our pay cycle they look at if the member is/will be 55
in the month they receive their first check.
Q: What impact will the short July 2006 payroll cycle
have when SDRS is calculating my retirement benefit? Do they use
the amount submitted by payroll each month or by my annual salary
for that period?
A: Even if the employee is retiring in July 2006 it won't
impact it as the one month pay would be a low amount as compared
to the three month average (one month pay vs. three month pay).
The 'loan' feature will keep the salary average the same so the
employee should not be 'hurt' by the shift.
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