Understanding when compensatory time should be moved to a prior pay period is critical to ensuring accurate benefit calculations.

Accrued federal, holiday, and state compensatory time is paid out when an employee leaves state employment or transitions to a non-benefit-eligible position. These payouts typically occur in the pay period following the termination or status change.

Because these payouts are issued in a pay period when the employee is no longer active or benefit eligible, the following payoff events must be moved to the last pay period in which the employee was active with the agency to ensure they are included in benefit calculations:

• Federal Comp Time Payoff (FCPO)
• Holiday Comp Time Payoff (HCPO)
• State Comp Time Payoff (SCPO)

Federal, holiday, and state compensation paid for working overtime during an active pay period should not be moved.

The following pay events should remain in the pay period in which they are paid, as they occur while the employee is actively employed and benefit eligible:

• Federal Comp Time Paid (FCPP)
• Holiday Comp Time Paid (HCPP)
• State Comp Time Paid (SCPP)

• Move comp time payoffs related to separation or a transition to non-benefit eligibility to the last active pay period.
• Do not move comp time paid for overtime worked during an active employment period.