(a) Pay for the Entire 10 Months. A 10-month employee who completes all the service required for the designated 10-month period beginning on the first day of the first state pay period of the designated 10-month period, shall for such service be paid the annual salary in 12 installments payable on state pay days of each of the subsequent 12 pay periods, covering the period of one year. The first installment shall be paid on the first state pay day following the effective date of appointment, reinstatement or election for the year. Authorized time worked in excess of the employee's regularly scheduled workweek shall be compensated for in accordance with the provisions of sections 599.700, 599.701, 599.702, 599.703, 599.703.1, 599.704, 599.705, 599.705.1, 599.706, 599.707, 599.708, 599.709, 599.710 and 599.711 of these regulations at the monthly rate which the employee could have earned had the employee not elected to be employed and paid under the provisions of this section. If such employee serves in excess of 10 designated monthly pay periods during any 12-month period, such excess service shall be under separate appointment and shall be compensated at the monthly rate appropriate for that appointment and position.

(b) Interim Adjustment in Pay Due to Noncompensable Absence. If, because a 10-month employee reports for duty after the first day of the first pay period of the designated 10-month period or because the employee has had a noncompensable absence, it is necessary to reduce the salary payment for any state pay period, the interim reduction for that period shall be at the rate of ¹/₂₁₀ of the annual salary of the employee for each workday the employee was in a nonpay status, except that if such computation in any one pay period would result in zero or minus pay, the employee shall be paid at the rate of ¹/₂₁₀ of such annual salary for each day actually worked during such state pay period.

(c) Settlements Payments. A 10-month employee who serves less than the designated 10-month period, or whose pay has been adjusted because of reporting for duty after the first day of the first pay period of the designated 10-month period or because of a noncompensable absence, or who has had a change in rate of pay or in time base shall, on the state pay day on which the employee is to receive the final installment of the annual salary, or at the time of separation or transfer from the 10-month position, receive a final settlement computed in accordance with the following formula:

(d) Report to State Controller. The final settlement payment shall be computed by the appointing power and a copy of such computation furnished to the State Controller's Disbursing Office.