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Payroll Services Letter 05-13.1: Not-To-Exceed Actions (NTE)


Payroll Services Letter 05-13.1: Not-To-Exceed Actions (NTE)

Number: PS05-13.1

Date: April 17, 2005 (Revised May, 2009)

Subject: Not-To-Exceed Actions (NTE)

Category: Personnel Actions

Reference: PS05-13, Subject: Not-To-Exceed Actions (NTE), dated April 17, 2005. PS05-13.1 replaces PS05-13. Please replace that letter with this one.


This letter describes the procedures Human Resource (HR) Centers must follow to ensure proper and timely payment to employees who are on NTE Appointments, Promotions, Leave Without Pay, Sabbatical, Suspension and Military Furlough.

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Effective April 17, 2005, all employees of the Department of Health and Human Service (DHHS) will be subject to the payroll rules of the Defense Finance Accounting Service (DFAS). Therefore, the following stipulations relative to employees who have NTE dates in their records must be strictly adhered to.

Promotion NTE – A personnel action to extend a temporary promotion or an action to make the temporary promotion permanent must be processed and updated prior to the NTE date. If the temporary promotion expires and no extension or permanent promotion has updated, DFAS will revert the employee’s rate to the permanent grade and step of record. If the expiration date of the promotion NTE is effective anytime other than the end of the pay period, DFAS will prorate the salary due. Example: Full-time employee’s temporary promotion NTE date is 13-Apr-2005. DFAS will pay 64 hours at the temporary (higher) rate and 16 hours at the permanent (lower) rate. The employee will continue to be paid at the permanent (lower) rate until an extension to the temporary promotion or a permanent promotion is updated to the employee’s record.

If an extension of the temporary promotion or a permanent promotion is updated after the NTE date expires, DFAS will process the personnel action through their retroactive process. DFAS will make any back payments due on the pay period that the personnel action updates. Special Pays will not be processed for these retroactive payments.

Leave Without Pay, Sabbatical, Furlough, and Suspension NTE – If one of the named actions expires, DFAS will not pay the employee until the Master Employee Record (MER) is updated with a Return to Duty (RTD) Action. Once the RTD action is processed, the CSR must input the T&A information for the pay periods that the employee was not paid and request a Special Pay. DFAS will process the Special Pay if the amount due is less than 90% of what the employee should have received.

Appointment NTE – The HHS personnel system will automatically process a termination of appointment action if the appointment expires and no extension is processed prior to the effective date. The termination action will update the employee’s master in EHRP and along with other transactions, the termination action will be sent to DFAS. DFAS will pay the employee the number of hours due up to the expiration date. If the termination is other that the end of the pay period, DFAS will pay the number of hours due. Example: Full-time employee’s appointment NTE date is 13-Apr-2005. DFAS will pay 64 hours.

At the end of the pay period in which the termination is received, DFAS will begin processing the person off the payroll. They will process the lump-sum annual leave payment and send the appropriate documents (SF-2806 or SF-3100) to OPM for action. However, if DFAS receives (information is updated in the employee’s MER) a nature of action (NOA) 001 – Cancellation SF-50 and an extension of the appointment no later than end of processing of the second pay period after the employee was terminated, the cancellation and extension will be processed in the DFAS system and the entire record will be reactivated. The CSR must input the T&A information in order for the employee to be paid. The SF-2806 and SF-3100 will be forwarded to OPM and cannot be retrieved by DFAS. If lump-sum annual leave was paid the employee will receive a debt collection letter.

If the appropriate NOAs (cancellation and extension) are not processed within the timeframe indicated, the HR Center must process an appointment action. The HR Center must also process all the other supporting documents, tax forms, health benefits, thrift, etc. to start a new record for the employee. The record cannot be reactivated by DFAS.

The data fields that are driven by maximum amounts withheld during the year will be updated by DFAS, i.e. FICA, Thrift, Medicare, etc.

The Cancellation SF50 must be mailed or faxed to:

DFAS Cleveland Payroll Office
8899 E 56th Street
Indianapolis, IN 46249-1900

Toll Free: 1 (866) 401-5849
Commercial: 1 (317) 275-0354

For further assistance or for questions regarding the information in this letter, please contact your Payroll Customer Service Team.