Section 121. General provisions relating to classification and allocation

1. Effective date  of  classification  and  allocation.  Any  classification  or  reclassification of a position and any allocation or
  reallocation of a position to a salary grade made by the director of the
  classification and compensation division  or  the  state  civil  service
  commission  pursuant  to  the  provisions  of  this article shall become
  effective on the first day of the fiscal year following approval by  the
  director  of  the budget and the appropriation of funds therefor, except
  that the director of the budget may, in  his  discretion,  authorize  an
  effective date prior to the first day of the ensuing fiscal year.
    2.  Salary  rights and limitations. (a) Notwithstanding the provisions
  of paragraph (b) of this subdivision, the annual salary of any position,
  compensable on an annual basis, which is classified or reclassified,  or
  which  is  allocated  or  reallocated  to a salary grade pursuant to the
  provisions of this article shall not be reduced for the  then  permanent
  incumbent  by  reason  of  any provision of this article so long as such
  position is held by the then permanent incumbent.
    (b) When a position is allocated pursuant to the  provisions  of  this
  chapter to a salary grade in section one hundred thirty of this chapter,
  the  incumbent  thereof,  whether  employed  on a permanent or temporary
  basis, shall be paid in accordance with the provisions  of  title  B  of
  this article.
    (c)   No   employee   whose   salary   would   be  increased  by  such
  classification, reclassification, allocation or reallocation shall  have
  any  claim  against  the  state  for the difference, if any, between his
  former salary and that which he should  receive  as  a  result  of  such
  classification,  reclassification,  allocation  or  reallocation for the
  period prior to the date such change in title or  salary  grade  becomes
  effective.
    3.  Status  of  employees.  No employee whose position is reclassified
  shall be promoted, demoted, transferred, suspended or reinstated  except
  in accordance with the provisions of this chapter.
    4.  Limitations of use of preferred list. A preferred list established
  pursuant to section eighty-one of this chapter shall  have  no  priority
  with  reference  to a new position created by the reclassification of an
  existing position pursuant  to  this  article  whenever  the  use  of  a
  preferred  list  for  filling  such  new  position  would  result in the
  suspension of an employee pursuant to the provisions of  section  eighty
  of this chapter.
    5. Career ladders. The director of the classification and compensation
  division  may,  in  order  to  implement  a  plan  for  the  progressive
  advancement of employees  in  an  occupational  group,  based  on  their
  acquiring,  as  prescribed  by  such  director,  of  either  training or
  experience or both, reclassify the positions of the incumbents who  meet
  the  prescribed  qualifications  to  titles  allocated  to higher salary
  grades. The advancement of an incumbent pursuant to this subdivision  is
  not, and is not to be deemed, a reallocation.