Military Pay Changes, Coming 1/1/15
Active duty and Reserve members' pay transactions will shift from JUMPS to Global Pay on 1 January 2015.
The purpose of this page is to:
Flag Voice 432
From December 18th 2014 to January 5th 2015 Direct Access will be taken
off-line to conduct a major software upgrade representing the most
significant change to our pay system in nearly two decades. This upgrade
will include the deactivation of the outdated Joint Uniform Military Pay
System (JUMPS) and the implementation of Direct Access’s payroll engine –
commonly referred to as Global Pay. The “Go-Live” date is fast approaching,
and we have less than three months to ensure all data in Direct Access is
This upgrade impacts all Active Duty and Reserve members as well as civilian supervisors of military members. The change management campaign has been underway for a couple months now, but it is imperative that we continue to share information with the entire workforce from several directions and levels. To that end, I have attached three detailed information sheets which share critical information specifically tailored for commands, Servicing Personnel Offices (SPO), personnel/administration offices, and individual members. I ask that you share these information sheets with each of your direct reports, and ask them to discuss this information with each of their staffs as well.
To make this transition successful and ensure accurate pay in January, please stress the following key items early and often:
Understanding that a change of this magnitude will inevitably produce some pay errors, we expect them to be minor, and are working hard to eliminate the possibility of any errors. In addition, following the January 1st 2015 “Go-Live” date, teams will be in place at the Pay and Personnel Center to immediately respond to the field and quickly resolve any unforeseen pay issues that arise. I will provide more specific information over the next month.
Rear Admiral D. R. Callahan
D. R. CALLAHAN
Rear Admiral, USCG
Assistant Commandant for Human Resources
FLAG VOICE 414
The Coast Guard migrated to Direct Access in 2000. The engine behind Direct
Access is PeopleSoft HRMS. PeopleSoft, supplemented by other special purpose
software systems (e.g., JUMPS, MRTT), is the substance of our Human Capital
Management System (HCMS).
For a variety of reasons, we chose to customize PeopleSoft over the years. Each change in the wording of headings, data names, or process names to make them sound “less like a business” and “more like the Coast Guard” meant that when updates from the software vendor were applied, all the changes had to be made again and again, with considerable cost and rework. Our version of PeopleSoft, version 8.0, was deployed in 2000. Fourteen years later, in 2014, that’s like a century in “computer years.” Our version is so old that Oracle stopped supporting it in 2008. That’s one reason we are updating our HCMS – to eliminate customization, catch up with the technology, and get back to as close to “off the shelf” as we can.
My staff watched a demonstration of the current version of PeopleSoft recently, and among other improvements saw a module that would allow people to compare their competencies, experiences, and other characteristics with those of any job in the organization and produce a gap report that could feed an Individual Development Plan. Imagine what it might mean to PO2 Gogetter to be able to lay out career goals with all the training and assignments necessary to gain the competencies to be competitive for that dream job. That’s another reason we are updating our HCMS – to make Direct Access easier to use, and provide new capabilities to our people.
And that includes our HR specialists – Yeomen. When we first began to use technology to manage our HR information systems (anyone remember PMIS?), we started to believe that we could do what we had been doing with fewer people. But our experience is that the technology doesn’t just replace existing capability – we want it to do much more, since it is more capable. We downloaded quite a bit of work to members (self-service), changed the role of the YN dramatically, and took the assumed savings for reinvestment elsewhere. In retrospect, this may not have been the best course of action. There is a clear need for greater face-to-face/direct customer support as pays, transactions, and record requirements have become more complex. There are more rules than most of our people can remember or even remember to look up. We have a growing need for administrative “customer service” by our front-line HR professionals, and we could do much better by using technology and reallocating overworked-but-underemployed Yeomen. That’s another reason we are updating our HCMS – to take advantage of better technology, but not to replace HR specialists – to allow us to put some of those specialists where they need to be, closer to the customers they serve – members and their leaders.
We built complicated workarounds, complex matrices, and special purpose programs to link our HCMS to our payroll and financial systems – at considerable cost. And maintaining those systems is becoming more difficult as the criteria for success change. As the last few years of auditing our financial systems and internal controls demonstrated, we have a long way to go to be able to balance our books and assert to their sustained accuracy. We need to update our tools and our processes, automate as much as we can to reduce workload, and make sure that we can prevent errors that result in costly review, troubleshooting, and rework. That’s another reason we are updating our HCMS – to give us (and DHS, OMB, GAO, etc.) confidence that our HR and payroll transactions are accurate, that our books are balanced, and that we can tell American taxpayers that we know where their money is going, and for what purpose.
So what does all this mean? What are we doing?
First, we are “refreshing” Direct Access to version 9.1 of PeopleSoft HCM. That sounds simple enough, but the differences between our current version and the new one are great, and greater in some areas than others. Rather than having everyone learn all the nuances of these changes as they occur over the next few years, our first step has been to deploy MyPortalDirect, which will provide a single, stable, user interface regardless of what is going on behind the scenes. No one other than the technicians and process owners should need to worry about what version of our HCMS software they are using. This is underway already, and our goal is to make that invisible to as many people as possible. I’ll discuss a rough timeline below.
Second, we are moving from JUMPS to PeopleSoft Global Payroll. That will not affect most of us, except by making some self-service actions a little easier. What it will do is directly link personnel and pay transactions, and with a complementary financial accounting suite and some interface work, will be able to meet the Coast Guard’s accounting and financial reporting needs. It will also make it possible for us to take advantage of updates and improvements provided by the software developer without having to change everything ourselves.
Third, as some know from a pilot test underway in the Boston area, we are looking carefully at how technology can be used to automate processes, capture required records and other documents once at the source, and strengthen our controls over the accuracy and validity of HR transaction that affect pay. The Coast Guard is under considerable pressure to improve these things as important dimensions of our financial audits.
The result of this pilot may point the way toward redistributing our HR specialists from jobs as data entry clerks and “checkers” to a more important role: providing better customer service for all of our members. We need to let computers do what they do best, and let people do what they do best. We also need to look at all the “add-ons” and special purpose applications we have developed over the years and see if they are still necessary, or if some of the functions can be accomplished within the new capabilities of Direct Access 9.1. This is an ambitious effort, to be sure, and one that will take years to accomplish. The current timeline calls for the Direct Access refresh and the move to Global Payroll to be completed in 2015. Coast Guard and PHS retirees and annuitants are already being paid using Global Pay. Active duty members’ pay transactions will shift from JUMPS to Global Pay on 1 January 2015. PHS active duty payroll will be phased in the following year.
Rear Admiral D. A. Neptun
D. A. NEPTUN
Rear Admiral, USCG
Assistant Commandant for Human Resources
Issue date: 2/12/14
Take a few minutes to review the payroll processing changes, listed below and on the other tabs on this page, we think will have the most impact on our members.
Review the announcements block on the Direct Access Portal page often as lots of good information is posted from PPC Topeka in that area on the upper left hand side of the Portal.
Ask questions of your SPO Yeoman if something is unclear.
And most important of all - PLEASE review your Leave and Earning Statement FREQUENTLY!
Global Payroll cutoff dates will be pushed out approximately 2 to 3 days and will be closer to the actual payday. This will allow more time to get transactions in so they process for mid and end month payroll calendars. Ultimately, this allows more time to get transactions in and avoid retro processing.
See "Cutoff Dates" in the Global Pay Knowledge Base for more information.
SPO's will have daily access to payroll calculation results as the Global Payroll application will process transactions when approved by the SPO Supervisor. No need to batch process them any longer. Multiple times per day the application calculates payroll and online results are available.
Leave transactions will process in Global Payroll timelier. For example, if you have an approved Leave Request for 8/10 to 8/20, and the pay period is mid month August (8/1 to 8/15). When payroll runs the leave from 8/10 to 8/15 will post during the mid month pay calendar. The remaining days 8/16 to 8/20 will be picked up during the end month calendar.
Transactions will no longer be held until you return. It is extremely important that when approved leave is canceled or modified prompt action is taken to notify the admin POC or SPO of changes.
JUMPS will process every allotment it can as long as the member has available pay.
In Global Payroll, when a member enters negative net pay (they do not have not enough to cover all allotments), payroll invokes what is called Net Pay Validation (NPV). Every payroll deduction element (allotments included) is assigned a priority processing order. The order was determined according to policy and law by PPC Topeka.
When NPV kicks in payroll will loop through each deduction lowest to highest and throws out the lowest one until net pay becomes greater than or equal to $0. Once thrown out, the deduction will not be considered by payroll again during that processing period.
Simple example - for mid month Jun - the pay calendar period is 6/1/2014 to 6/15/2014
|BAH||$ 980.00||SWT||$ 150.00|
|CONUS COLA||$ 345.50||MEDICARE||$ 250.00|
|(Total earnings)||$2825.50||(Total deductions)=||$2975.00|
NPV kicks in because the deductions exceed earning and the member has negative net pay: $2825.50 - $2975.00 = $(-149.50). Assume in this example the deductions are shown in priority order - FWT is highest and FLTCIP is lowest.
Payroll's first pass compare net pay after dropping the lowest priority deduction element, in this case, $75 FLTCIP allotment. By dropping FLTCIP net pay is still negative: $2825.50 - $2900.00 = $(-74.50). Pass one is complete, payroll will NOT process the FLTCIP deduction during this pay cycle.
During pass two, payroll evaluates the next lowest priority deduction, the $150 Savings allotment. This time net pay is greater than $0. $2825.50 - $2750.00 = $ 75.50. NPV is finished. Remember, payroll needed to eliminate the FLTCIP and Savings allotment to resolve the negative net pay, and will not process either one of them during this cycle, no matter how much net pay remained.
There may be instances where a service debt, garnishment and/or other deduction gets added to payroll. When it has a higher priority than existing allotments and net pay ends up less than $0, NPV will automatically kick in.
On this tab we will provide links to video demos and procedural guides for the following:
New Self-Service User Guides:
|Self Service - Allotments||200KB||PDF File|
|Self Service - Direct Deposit||94KB||PDF File|
|Self Service - Emergency Contacts||205KB||PDF File|
|Self Service - Ethnic Groups||149KB||PDF File|
|Self Service - Federal and State Tax Elections||73KB||PDF File|
|Self Service - Home and Mailing Address||180KB||PDF File|
|Self Service - My Assignments Endorsements||241KB||PDF File|
|Self Service - My eResume||234KB||PDF File|
|Self Service - My Member Info||50KB||PDF File|
|Self Service - Phone Numbers||161KB||PDF File|
|Self Service - Thrift Savings Plan||198KB||PDF File|
New Reserve Specific Self-Service User Guides:
|Self Service - All Duty Report||231KB||PDF File|
|Self Service - Annual Screening Questionnnaire||464KB||PDF File|
|Self Service - Inactive Duty for Training (IDT)||296KB||PDF File|
|Self Service - Montgomery GI Bill-SR||234KB||PDF File|
|Self Service - My Reserve Orders||449KB||PDF File|
|Self Service - My Reserve Point Statement||326KB||PDF File|
|Self Service - Withdraw or Edit IDT Request||266KB||PDF File|
On this tab we provide customers with an overview of the new Pay Slip.
Pay Slips will not be mailed.
The last Leave and Earnings Statements will be produced at the end of December 2014.
On this tab will notify payroll customers of changes to state tax processing for members who are assigned to states where military pay is only taxed when the member is stationed within his/her state of residence. JUMPS would start/stop state tax withholding upon PCS to/from a unit located in the member's domicile state. Members will need to be aware of how to manually start and stop their tax wittholding.
State tax withholding is much different than Federal and varies by state to state with different withholding rules based on residence and wages, etc.
Don't forget to review your individual state tax situation and make appropriate adjustments.
Earnings are taxable as Annualized or Supplemental. When tax is calculated as Annualized (which is the majority of the earnings), the delivered Global Payroll formulas take the Taxable Gross, estimates the Annual Taxable Gross, determines the annual FWT from the federal tax tables, then divides by the number of pay calendars in the year (26 per year / two per month) to reach the FWT deduction.
Additionally, there are Pre-Tax deductions, which reduce taxable gross (e.g., Fines, Forfeitures). When a Pre-Tax deduction is applied during a pay period, it will cause the FWT deduction to adjust accordingly.
Most service members will see changes in net pay because of FWT. Please review the Leave and Earnings Statement and if taxes are not what's expected consider making adjustments and submit a new W4.
Reservists most likely will see the biggest change mentioned above because of periodic wages throughout the year and how the Annualized calculation method is applied.
It is HIGHLY encouraged, highly recommended and highly advised that reserve members compare a 2014 LES against their first one from Global Payroll and analyze their personal tax situation.
For example, if the 2014 LES shows FWT of $150 for a normal monthly drill period but Global Payroll shows $50 for the same number of drills then it might be beneficial to submit a new W4 and indicate an additional amount to be withheld.
The additional money withheld is over and above any that Global Pay may calculate for a given period (either mid month or end month). If a W4 indicates additional $100 to be withheld and the member drills one weekend and it is processed during the mid month period (1st to 15th), $100 will be withheld plus any that is calculated based on filing status. Assume another drill is processed in the end month period (16th to 30th), another $100 will be withheld plus any calculated.
It may take a couple months of drilling and Leave and Earnings Statement analysis to get taxes where expected.
On this tab we will attempt to minimize customer concerns with a list of questions and answers.
Q. There have been rumors from the various texts regarding the transition that SPO's will no longer be receiving LES's via mail come January, but no one can seem to confirm for sure for us. Do you know if this is true?
A. Yes. That's true. The last LESs will be for December 2014. After that, it'll be the "Pay Slip" in Global Pay. They are still working on a way for SPOs to validate changes to pay like they did with the LES.
Q. Okay, with that being said, the next question came up of what will we SPO's do with the old LES's, just shred them?
A. No. Retain them for one year (as per current policy). They'll be needed for research for the prior year.
Please review the Questions and Answers from the Global Pay Virtual Training Sessions. They are located on the Course Materials tab of the Procedures and Development branch web page.
This tab provides guidance to aid in the transition from the Joint Uniform Military Pay System (JUMPS) to HCMS/Global Pay
Direct Access will be shut down on 15 December 2014 and not be available until 5 January 2015. That means NO self-service, NO ability to submit personnel transactions, such as leave requests, Dependency changes, PSC orders, BAH, Reserve (IDT/ADT) order, Separation requests, etc.
Ensure HR and payroll transactions are processed on-time
Each pending request has the potential to present complications and impacts to pay if not resolved before the transition to Global Pay in January 2015. Commands must review the status of all pending leave requests within their command and take action to resolve outstanding requests. A report listing all pending absences for any command can be generated in Direct Access. Here are the step by step directions on how to create and manage the Monitor Absence Request report.
The Director of Reserve and Military Personnel released ALCOAST 355/14. It provides guidance for managing fiscal year 2015 (FY15) reserve duty during the transition from the Joint Uniform Military Pay System (JUMPS) to the Human Capital Management System/Global Pay (HCMS/GP). We've reformatted the message to help highlight the following key points:
No one wants to be underpaid, particularly over the holidays. What can be done to minimize the potential?
Make use of the following Direct Access reports to ensure appropriate action is taken on all pending transactions prior to 18 December 2014:
Processing Guidelines for 6 Nov 2014-5 Jan 2015:
PPC SEP will be processing all remaining separations through the end of the year starting on 6 Nov 2014 (Day after Mid-Month compute cycle is complete).
This will ensure separations and payments for calendar year 2014 are captured in the JUMPS payroll system from which the 2014 W2s will be generated.
It is imperative for SPOs to complete and approve to the maximum extent possible all separation work within this time frame to allow the JUMPS system to calculate final pay in a timely and accurate manner.
Communication is a major key to ensuring separating members are paid correctly. Please do not hesitate to contact PPC SEP with questions, changes, etc., via email to PPC-PF-SEP, phone (785-339-2200), or customer ticket submission.
Processing Guidelines in Global Pay beginning 5 Jan 2015:
All final pay and allowances will be paid to the separated member on the next regular pay cycle following the date of separation (DOS). For example, a member separating on 5 Jan 2015 will receive final pay and allowances on 15 Jan 2015. Certain cases may require a "special payment" but these will be limited. Guidance for special payment requests will be forthcoming. The current process for requesting an earlier separation date (amendment to a PSC approved separation authorization) will remain the same but must fall within the new payroll processing schedule guidelines. In Global Pay, the separation order completed and approved by the SPO is the transaction that will calculate and close separating members' accounts. There will be no electronic Statement of Intent to complete.
Also of significant note; CSEAPAY, CSEAPAY PREM and OCOLA must be manually stopped by the SPO upon the member's departure from the unit (or, OUT CONUS location for OCOLA) on terminal leave. Payroll transactions required in connection with separations will be noted in the procedural guidance. Most pay entitlements continue to accrue while a member is on leave in connection with separation. However, CSEAPAY, CSEAPAY PREM, and OCOLA are unique, these entitlements end when the member departs the unit or OUT CONUS unit on leave with no intention to return.
More Cutover Guidance Coming Soon:
Cutover guidance for pay transactions, orders and other events will be released in the very near future. We will also provide information and procedures for special payments (during the shutdown - 18 Dec to 05 Jan), retroactive transactions, and, corrections/deletions of converted data.
No one wants to be underpaid, particularly over the holidays. What can be done to minimize the potential?
SUBJ: TQC TRAINING ADVISORY 001-15: IMPACTS TO CLASS C SCHOOL ORDERS DURING DIRECT ACCESS OUTAGE