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UC DAVIS: VICE CHANCELLOR-ADMINISTRATION
August 31, 2000
NOTICE TO EMPLOYEES
DEANS, DIRECTORS, DEPARTMENT CHAIRS AND
CAMPUS/UCDMC ADMINISTRATIVE OFFICERS
RE: Guidelines for Staff Salary Increases and Proposed Plan for
Distribution of Special State Funding Augmentation for Staff Employees
Merit Control Figure
The merit control figure for non-exclusively represented staff in the
Manager and Senior Professional (MSP) and Professional and Support Staff
(PSS) merit pay plans is 3.5% effective October 1, 2000. This fund pool is
a combination of range adjustment and merit funds.
The UC Davis-wide salary grade structures have been expanded from 40-50%
width for Grades A-E, and 60-70% width for Grades 1-8. This is also
effective October 1, 2000. Specific range information is available at
http://hr.ucdavis.edu/comp/PSSRates.htm. Changes to health care related
titles not on the standard grade structure will be announced separately.
Proposed Plan for Distribution of Special State Funding Augmentation for
Staff Employees The 2000-2001 California State budget includes a special
augmentation of$19 million for additional salary increases for certain
UC employees, including state-funded staff. Consistent with the
Governor's intent, this funding is to be used primarily to improve the
compensation of lower paid employees. This augmentation will be
programmed and implemented by Office of the President (no action
necessary at the department level). For those employees funded from
other than State and student fee funds (i.e., contract and grant or
self-supporting units) the augmentation will be processed by Office
of the President but the department will need to fund the salary
augmentation. The special augmentation is in addition to previously
announced funding for regular salary merit increases for employees.
However, your merit pool calculation will be based on salaries PRIOR
to this additional 1-2% augmentation (please refer to the attached
memo, dated June 15, 2000, for more detailed instruction for determining
the merit pool of funds).
Funding for the special additional increases is effective October 1, 2000.
The University is proposing the following distribution plan for the special
funding augmentation for staff employees.
In addition to the range and merit increases announced for 2000-2001, staff
employees whose annual salary rate is less than or equal to $40,000 would
receive an additional 2% salary increase (across-the-board), and those with
annual salary rates above $40,000 and below $80,000 would receive an
additional 1% salary increase (across-the-board).
Consistent with the intent of the Legislature, none of the additional state
funds would be used for highly compensated employees. The IRS currently
defines "highly compensated" as those earning $80,000 or above, and the
University has established this amount as the upper limit for the
distribution of the additional funding.
Salary increases for UC staff covered by collective bargaining agreements
must be negotiated before they can be implemented. Bargaining with
represented employee groups may result in a different distribution of the
augmentation for represented employees than described here. This could
create situations where adjustments for non-exclusively represented staff
may be necessary. If this occurs, UC Davis will work to assess any such
issues. Any action taken to resolve such issues would occur at a later
time, and affected staff employees would be notified.
The development of this plan has been complex due to the necessity of
balancing employee needs, state expectations, the collective bargaining
process and the availability of funds. The process for implementation of
these additional salary increases is also quite complex, and varies from
normal staff range and merit processing in UC payroll systems. Every
effort is being made to ensure that employees will receive their range
and/or merit increases and the special increases effective October 1, 2000.
These increases should show up in the first payroll check that includes
October earnings.
As stated earlier, salary actions for exclusively represented UC staff are
subject to the terms of existing collective bargaining agreements or to
meeting and conferring in accordance with provisions of the Higher
Education Employer-Employee Relations Act (HEERA), as appropriate. Unions
have been apprised of the University's understanding regarding the intended
distribution of the additional $19 million, and bargaining concerning that
distribution is either in progress or will begin soon.
If you have any questions or comments, please contact my office at (530)
752-3383, Compensation Services at (530) 752-9926, or the UCDHS
Compensation Unit at (916) 734-8720.
Dennis Shimek
Associate Vice Chancellor -
Human Resources
Attachment
00-101
________________________________________________________
Attachment:
June 15, 2000
ASSISTANT DEANS
CAMPUS BUDGET COORDINATORS
HUMAN RESOURCE ADMINISTRATORS
SUBJECT: Determining the Pool of Funds Available for 2000-01 Staff
Salary Programs
Dear Colleagues:
We are writing to follow up on the May 24, 2000, and May 26, 2000,
communication regarding 2000-01 merit reviews for Professional & Support
Staff (PSS) and Manager and Senior Professionals (MSP). Specifically, we
want to provide information to assist you in determining the pool of funds
available to your unit to fund these merit programs.
In early May, Provost and Executive Vice Chancellor Grey provided each dean
and vice chancellor with planning parameters based on the Governor's Budget
as proposed to the State Legislature in January 2000. The planning
parameters related to staff salary increases were generally consistent with
past years as follows:
* Staff not covered by collective bargaining agreements: Two percent
for salary range and 1.5 percent merit adjustments effective October 1,
2000. The combined "merit control figure" for employees in this category
is 3.5 percent.
* Staff covered by collective bargaining agreements: Amounts to be
determined through the collective bargaining process.
Based on recent actions by the Governor and the State Legislature, it
appears likely that the State Budget will provide the University additional
funding for staff salary increases. This funding may be the equivalent of
up to two percent of the University's staff salary base. These are
promising developments. However, it is not clear at this time how much
additional funding will be included in the final State Budget Act, how
those funds will be allocated to the University or to the campus, or
whether they will be available to fund salaries in all employee salary
programs. Therefore, at this time we ask that you manage the merit process
consistent with the published planning parameters using the methodology
that was described last year (see Attachment 1). We will provide
additional information to you as it becomes available.
As you know, separate merit calls are issued for staff covered by
collective bargaining. The calculation of the pool of available funds
(range and merit) for each collective bargaining unit (e.g., CX, TX, SX,
etc.) is specific to the terms of the agreement between the University and
the unit. Therefore, it is not possible to provide you with specific
directions regarding the calculation of the merit pool for a particular
unit until negotiations with the unit are concluded. As an interim
measure, we are providing an illustrative calculation of the merit pool for
a hypothetical collective bargaining agreement (Attachment 2). At the
conclusion of each collective bargaining negotiation, we will provide
information of this nature for the subject collective bargaining unit, and
distribute it with the subsequent merit call.
If you have questions or need further explanation, please contact Principal
Analyst Mike Bee (Planning and Budget) at 752-7953, or Linda Fairfield
(Division of Human Resources) at 752-3954.
Sincerely,
Bob Loessberg-Zahl Dennis W. Shimek
Director-Program Planning and Associate Vice Chancellor
Budget Operations Human Resources
/dfu
Attachments
c: Principal Analyst Bee
Human Resources Analyst Fairfield
Associate Accounting Officer Henn
Compensation Manager Horgan-Thompson
Payroll Manager Jones
Assistant Vice Chancellor Nosek
Associate Director Ratliff
Attachment 1
Determination of Merit Salary Control Total for Non-Represented Staff
To ensure uniformity across campus departments, this document is intended
to clarify how units should determine the amount of funds from all sources
for non-represented staff merits, and restates campus budget policy
regarding merit increases. This document describes the merit process from
a budget (resource allocation) perspective. It does not describe in detail
the payroll actions required to implement merit decisions.
Step 1: Calculate the merit control total for non-represented staff as
the sum of the following:
a. 3.5% times the salary of all employees in the salary program as of
April 1; and,
b. 1.5% times the entry-level salary of all open provisions in that
salary program.
This is the amount of funds from all sources that should be allocated to
fund merits for non-represented staff. Please recall that central funding
is provided for merit increases of permanently budgeted staff employees
(i.e., budgeted and paid from SUBS) that are supported from general funds
and registration fee funds. As in the past, merit funding for eligible
positions supported by all other fund sources is the responsibility of the
department.
The calculation in Step 1.a. should include the salaries of employees
already at the range maximum, even though "at max" employees may be
themselves ineligible for additional merit increases. In Step 1.b., the
multiplier for open provisions is limited to 1.5%. This is because open
provisions automatically receive a 2% budgetary range adjustment to
maintain funding at the entry level (i.e., first quartile or first step).
Step 2: Assign merits to eligible employees and calculate annual cost
of the merits, ensuring that the total of the individual merit increases
awarded does not exceed the control total calculated above in Step 1.
Eligibility for the purposes of this step (i.e., Step (2)) is as defined by
human resource policy. Merit increases for staff in the Personnel Policies
for Staff Members titles (99 or K-3) are normally effective on October 1 of
each year. All employees who hold a Professional and Support Staff (PSS)
or Manager and Senior Professional (MSP) career position on April 1 and are
non-probationary on October 1, are eligible for a merit increase. Once the
employee is placed into the eligible pool for the October process, they
will remain in that merit cycle until such time as they leave the PPSM
program.
For example, an employee in a bargaining unit who is promoted or
reclassified to a PPSM title with an effective date of April 1, 2000 or
earlier will be eligible for a merit review in the uncovered staff process
for October 2000. However, an employee in a bargaining unit who is
promoted or reclassified to a PPSM title and has an effective date later
than April 1, 2000, is not be eligible for a merit review for uncovered
staff until October 2001.
Additional information about eligibility is provided in the annual merit
call letter from the Division of Human Resources and in human resource
policy (e.g., Salary Policy (30) I).
Step 3: Calculate anticipated current year and permanent (base) cost
for each merit action as described below.
This information should be used to reconcile the staffing list and verify
that budgets are augmented appropriately to reflect the new salary costs.
Current and base budget augmentations (costing transactions). In general,
the current and base budget costs are calculated as follows:
* Current budget = monthly increase times 9 months (October through July)
* Base budget = monthly increase times 12 months (annualized cost for
permanent employees)
Funding. In general, central funding is provided for merit increases of
permanently budgeted staff employees (i.e., budgeted and paid from SUBS)
that are supported from general funds and registration fee funds. As in
the past, merit funding for eligible positions supported by all other fund
sources is the responsibility of the department. We recommend that human
resource managers work closely with budget coordinators to ensure that the
financial results of merit actions are appropriately addressed in the
department's resource plan. Please refer to the Staffing List reference
materials on the Planning and Budget Office web site for more information
about funding (www.pbo.ucdavis.edu).
For general assistance positions (positions paid from SUBG), the unit is
responsible for funding the actual current and future year costs for all
salary increases. The campus provides range funding for permanently
budgeted General Fund and Registration Fee-supported general assistance
salary budgets (base budget for SUBG times 2% range) to help offset this
cost. However, this augmentation is not tied to a particular employee or
position.
Please refer to the Staffing List reference materials on the Planning and
Budget Office web site for more information on funding (www.pbo.ucdavis.edu).
Attachment 2
Determining Merit and Range Funding for Staff Represented by Collective
Bargaining
This document is intended to illustrate the concept of a merit/range
control total for employees covered by collective bargaining. This
illustration is purely hypothetical. The actual allocation of funds for
any given unit will be based on the final negotiated terms of the
University's collective bargaining agreement with the unit. The terms of
each agreement, including discussion of how to determine the amount of
available funding, will be communicated under a separate cover during the
implementation phase of each collective bargaining agreement. Therefore,
the information provided in this attachment cannot be viewed as a standard
template for all collective bargaining agreements.
Step 1: The Division of Human Resources provides written information
about the terms of the collective bargaining agreement including
information about how to calculate the pool of available funds and what
accountability measures are required.
Example:
"__X" collective bargaining unit signs a wage agreement in fiscal year
1999-2000 that is retroactive to the prior fiscal year (1998-99) and that
includes the following wage-related provisions:
* Eligibility definition: In the "__X" unit as of 10/1/98 through the
ratification date, and still employed at the time of the payout.
Eligibility may address differential criteria based on career vs. casual
employee status.
* Eligible employees receive a 2% range adjustment effective 7/1/99.
* Eligible employees receive a merit according to campus procedures and
pay practices. The "__X" bargaining unit is a step-based unit.
* Contract calls for payment of increases in April 2000.
Step 2: Two-percent range adjustments are assigned automatically
according to the terms of agreement.
In general, the Office of the President provides programming to facilitate
a process that automatically provides range increases (both payroll and
budget changes) for all employees who are eligible under the terms of the
agreement. In addition, the Planning and Budget Office runs a program to
adjust permanently budgeted open provisions for the range increase.
Step 3: Calculate the merit control total for the "__X" collective
bargaining unit as 4.9% times the salary of all "_X" employees that are
merit eligible.
The above calculation should exclude the salaries of employees already at
the maximum of the salary range as well as open provisions. Eligibility
other than the "at max" definition is as defined in the terms of the
collective bargaining agreement (e.g., in the "__X" unit as of 10/1/99 and
continue to be represented as of April 2000).
Step 4 Assign merits to eligible employees (zero, half-step, step, or
step-and-a-half). The total annual cost of the merits must not exceed the
total merit control total calculated above in Step 3.
For represented staff, each bargaining unit negotiation addresses the
merit cycle and eligibility criteria. The Division of Human Resources will
provide specific information regarding eligibility will be provided with
each merit call. Current merit program dates and eligibility criteria can
be found on the Division of Human Resources web page at
.
Step 5: Calculate anticipated current year and permanent (base) cost
for each merit and range action as described below.
This information should be used to reconcile the staffing list and verify
that budgets are augmented appropriately to reflect the new salary costs.
This is a good tool to reconcile costing transactions.
Current and base budget augmentations (costing transactions). In general,
the current and base budget costs are calculated as follows:
* Current budget = monthly increase times ___ months. The number of
months should take into account retroactive adjustments. Please see the
explanation below for more information.
* Base budget = monthly increase times 12 months (annualized cost for
permanent employees). This is also referred to as the prospective salary
adjustment.
Monthly increase. The monthly increase is the sum of the range (2%) and
the merit (depends on individual).
Number of months. The number of months is based on the individual employee
(hire date, separation date, merit cycle).
For example, an employee that was hired in January 1998 and is still in the
"__X" unit in April 2000 will receive range funding as follows:
Prior fiscal year October 1998 through June 1999 9 months
Current fiscal year July 1999 through June 2000 12 months
Total current year funding 21 months
The same individual is in the July merit cycle (delayed until January) will
receive current year merit funding as follows:
Prior fiscal year January 1999 through June 1999 6 months
Current fiscal year July 1999 through June 2000 12 months
Total current year funding 18 months
Funding. In general, central funding is provided for permanently budgeted
staff employees (i.e., budgeted and paid from SUBS) that are supported from
general funds and registration fee funds. As in the past, merit funding
for eligible positions supported by all other fund sources is the
responsibility of the department. We recommend that human resource
managers work closely with budget coordinators to ensure that the financial
results of merit actions are appropriately addressed in the department's
resource plan. Please refer to the Staffing List reference materials on
the Planning and Budget Office web site for more information about funding
(www.pbo.ucdavis.edu).
For general assistance positions (positions paid from SUBG), the unit is
responsible for funding the actual current and future year costs for all
salary increases. The campus provides range funding for permanently
budgeted General Fund and Registration Fee-supported general assistance
salary budgets (base budget for SUBG * 2% range) to help offset this cost.
However, this augmentation is not tied to a particular employee or position.
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