2019-21 Potential Pay Plan Memo

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  • Date: April 24, 2019
  • To:
    Mark Mone, Chancellor
    Thomas Luljak, Vice Chancellor
    Patricia Borger, Vice Chancellor
    Joan Prince, Vice Chancellor
    Kelly Haag, Chief Student Affairs Officer
    Katie Miota, Chief Enrollment Officer
    Academic Deans
  • From:
    Johannes Britz, Provost and Vice Chancellor, Academic Affairs
    Robin Van Harpen, Vice Chancellor, FAA
  • Re:  2019-21 Pay Plan Guidelines for Faculty, Academic Staff, University Staff, and Limited Appointees

Please Note:

UPS Policy TC 3 has been renamed UW System Administrative Policy SYS 1277

UPS Policy TC 4 has been renamed UW System Administrative Policy SYS 1278

Introduction

The 2019-21 State of Wisconsin Biennial Budget from Governor Evers includes a pay plan of 2.0% scheduled for January 1, 2020 and 2.0% scheduled for January 1, 2021. It is important to note that the percentages are an aggregate total for UWM; actual salary increases for individual employees will vary. The Wisconsin State Legislature has not passed a state budget nor has Governor Evers signed a state budget. Following the signing of the state budget, the Joint Committee on Employment Relations will need to pass the final version of the 2019-21 Compensation Plan for the University of Wisconsin System and will need to do so before the increases become final. In the meantime, in order to meet deadlines for processing potential salary increases, we are required to proceed with a suitable performance appraisal system under which the results can be converted to salary adjustments when the pay plan becomes final. A timeline with deadlines for each step of the campus decision-making process is attached as Appendix Two.

In order to prepare for the potential pay plan, this memo contains the 2019-21 Pay Plan Guidelines for Faculty, Academic Staff, University Staff and Limited Appointees (“Guidelines”). The Guidelines are based on the University of Wisconsin System University Personnel System Policy TC 4 (“Policy”). The Guidelines have been established after consultation with the leadership of the University Committee, the Academic Staff Committee, the University Staff Council and with full agreement of Chancellor Mark Mone.

TC 4 states, “Each Chancellor is directed to proceed with faculty, academic staff, university staff, and limited appointee salary evaluations using a suitable evaluation system to assess meritorious performance and solid performance, the results of which can be converted to a salary, once the pay plan is known.” As such and as detailed in later sections of this memo, schools/colleges/divisions are instructed to complete a solid performance exercise to determine pay plan eligibility at this time.

Eligibility – Budgeted vs. Non-Budgeted Employees

Please note that these Guidelines apply to all UWM faculty, academic staff, university staff and limited appointees independent of source of funding for the 2019-21 fiscal years as described in this section.

  • A budgeted employee is an employee who is built into the budget system (compensation administration tool) by name. A non-budgeted employee is not built into the budget system by name; funding for non-budgeted employees is typically provided through a provisional, or lump sum amount, built into the budget.
  • Non-budgeted employees appointed at less than 50% FTE are not eligible for a pay plan increase; any pay increase given must meet the criteria under established policy (University Personnel System TC 3) for non-merit salary changes.
  • Non-budgeted positions for 50% FTE or more are eligible for a pay plan increase, consistent with treatment of permanent, budgeted positions. The exception to this is if a school, college, or division has an established and published pay schedule that is also referenced in appointment letters that states that non-budgeted employees are not eligible for pay plan increases.
  • If a school, college, or division elects to establish a pay schedule that states that non-budgeted employees are not eligible for pay plan increases, regardless of percent FTE, there should be an annual review of the pay schedule to ensure that pay rates fit within updated pay ranges (e.g., that there are not published pay minimums that fall below a new pay range). A copy of this formal policy should be on file with the Office of the Provost or respective Vice Chancellor.
  • Employees of UWM hired into to a new UWM position post October 1, 2018 are ineligible for a pay plan adjustment. The hiring unit may want to take this into consideration when they establish a base salary for the new hire. If the hire took place between October 1, 2018 and the issuance of this memo, the hiring unit may want to consider a non-merit compensation adjustment.
  • Employees of UWM who fail to complete UWSA mandated training or, for those required to do, submit the Outside Activities Report by April 30 will be ineligible for a pay plan adjustment.

Budget Considerations

Please note the following additional points related to the budget issues:

  1. Those paid in a lump sum payment are not eligible for pay plan increases.
  2. Counter Offer increases: if a school, college, or division grants a counter-offer increase that becomes effective during the 19-20 academic or fiscal year or later, and contemplates that the recipient will NOT receive a pay plan increase in addition to the counter offer amount, it should be stated clearly in the counter offer letter that the recipient will not receive pay a plan increase for the 2019-2021 biennium.
  3. Employees who are on a leave of absence during the implementation of the pay plan will realize the pay plan increase when they return from leave as long as they were eligible under the merit determination.
  4. Employees in interim appointments will realize the pay plan increase when they return to their permanent position as long as they were eligible under the merit determination.
  5. The campus will receive funding from UW System for employees who were paid on Funds 101 and 402 in the relevant October payroll. Divisions will be responsible for funding pay plan increases for employees paid on all other funds.

Section 1: General Provisions

  1. Each chancellor is directed to proceed with faculty, academic staff, university staff and limited appointee salary evaluations using a suitable evaluation system, the results of which can be converted to a salary adjustment, if warranted, once the pay plan is known. The salary review should be conducted in accordance with the performance standards outlined in Recommendation #9 of the 1992 Report of the Governor’s Commission on University of Wisconsin Compensation.
  2. Solid Performance determinations for faculty should be based on a systematic performance evaluation program, which identifies positive contributions by the faculty member to teaching, research, public service and/or the support functions inherent in the institution’s mission. Assessment of teaching faculty shall include consideration of student evaluations (Regent Policy Document 20-2). Solid Performance determinations for academic staff, university staff and limited appointees shall be based on a systematic performance evaluation program which allows supervisory assessment of performance in their areas of assigned responsibility. Solid Performance adjustments shall be provided to those faculty, academic staff, university staff, and limited appointees that have demonstrated satisfactory performance. For more information on considerations of solid performance and merit ratings, please see Appendix One.
  3. Any and all compensation adjustments must be based on performance; across the board compensation adjustments not based on merit are prohibited. At a minimum, continuing staff who have performed at a satisfactory level shall be entitled to a compensation adjustment from funds set aside to recognize solid performance, except when an employment contract or administrative practice holds to the contrary.
  4. Unless otherwise specified by executive/legislative action, the effective dates of the 2019-21 pay plan rates will be January 1, 2020 and January 1, 2021.
  5. Base salaries shall not be less than the salary minima or pay range minimum. The salary increase shall not move the base salary above the academic staff, university staff or limited appointee salary range maximum. Academic staff, university staff and limited appointees that are currently paid above the maximum shall be eligible for a salary increase of up to half of the amount by which the salary ranges have been adjusted. This does not include positions for which an Extraordinary Salary Range (ESR) has been established. For positions with an ESR, the maximum of the ESR will be adjusted by the pay plan percentage.
  6. Chancellors are authorized to earmark up to 15 percent of the total pay plan each year for the Chancellors’ discretionary use to meet special compensation needs such as: to reward members of the university workforce for innovative and/or collaborative program delivery, and/or exceptional performance in support of institution goals; and/or to correct pay inequities.
  7. Market determinations are not to be considered in the distribution of 2019-21 pay plan funds (TC4).
  8. These guidelines do not apply to those staff members represented by collective bargaining agreements.

Section 2: Faculty Pay Plan

  1. 10% of the total faculty pay plan will be earmarked for the Chancellors’ discretionary use to meet special compensation needs such as to reward members of the University workforce for innovative and/or collaborative program delivery, and/or exceptional performance in support of institutional goals; and/or to correct pay inequities. Deans may submit recommendations for allocations from the Chancellor’s pool. In making such recommendations, the Deans must clearly demonstrate the need with documentation of meritorious performance or innovative and/or collaborative program delivery.
  2. The remaining portions of the pay plan will be distributed to those deemed as solid performers in accordance with TC 4.
  3. Department chairs and executive committees are reminded that their criteria and procedures for developing pay plan recommendations must be approved by the department, circulated to all department members, and submitted to their dean.
  4. The breakdown of allocations for the Chancellor’s discretionary use and solid performance parts shall be made as given in this table:
    Allocation Type Recommending Body Attributable Percent
    Chancellor’s Discretionary Pool Chancellor 10% of Total Pool
    Solid Performance Portion of Pay Plan Executive Committee 90% of Total Pool
    Total Pay Plan 100% of Pay Plan
  5. Solid Performance Evaluation/Recommendations
    • Only faculty appointed on/before October 1, 2018 and continuing in 2019-20 qualify.
    • Only faculty demonstrating satisfactory performance qualify.
    • Each executive committee will make a determination on whether each eligible faculty is a solid performer. This is a yes/no determination.
    • Faculty who qualify will receive a salary increase equivalent to 90% of the faculty pay plan percentage, based on their current budgeted base salary rate.
  6. Notification

    The notification requirements per UWM Selected Academic & Administrative Policy No S-39 Merit Salary Recommendations – Information To Faculty Members (revised as of 3/3/03 as per Fac. Doc 2370) will be followed at all levels. The policy can be found at: https://apps.uwm.edu/secu-policies/storage/other/S39.htm.

Section 3: Academic Staff, University Staff and Limited Appointees

  1. 10% of the total academic staff, university staff and limited appointee pay plan will be earmarked for the Chancellors’ discretionary use to meet special compensation needs such as to reward members of the University workforce for innovative and/or collaborative program delivery, and/or exceptional performance in support of institutional goals; and/or to correct pay inequities. Deans or Division Heads may submit recommendations for allocations from the Chancellor’s pool. In making such recommendations, the Deans or Division Heads must clearly demonstrate the need with documentation of meritorious performance or innovative and/or collaborative program delivery.
  2. Pay plan recommendations must be based on a systematic evaluation of solid performance. This systematic evaluation may consist of the required annual evaluation conducted for all academic staff and university staff. Regardless, deans, supervisors and directors are expected to provide the academic staff and the university staff within their respective units with policies and procedures to be used to conduct this evaluation for solid performance. Regarding those staff members assigned to academic departments, Executive Committees are expected to develop policies and procedures, circulate them to the staff members they evaluate, and provide a copy to the dean. Executive Committees are expected to solicit input from their academic staff and university staff in developing and revising these policies and procedures.
  3. The breakdown of allocations for the Chancellor’s discretionary use and solid performance parts shall be made as given in this table:
    Allocation Type Recommending Body Attributable Percent
    Chancellor’s Discretionary Pool Chancellor 10% of Total Pool
    Solid Performance Portion of Pay Plan Supervisor/Department/Unit Recommendation 90% of Total Pool
    Total Pay Plan 100% of Pay Plan
  4. Solid Performance
    • Only academic staff, university staff and limited appointees appointed on/before October 1, 2018 and continuing in 2019-20 qualify.
    • Only academic staff, university staff and limited appointees demonstrating satisfactory performance qualify. For an academic staff, university staff or limited appointee to be determined less than a solid performer, recent (within one year), detailed and complete documentation supporting performance that is unsatisfactory must exist. Identification of the unsatisfactory performance with explanation of why performance is unsatisfactory must be furnished to the employee.
    • Academic staff, university staff or limited appointees on a formal performance improvement plan are not eligible for solid performance.
    • Academic staff, university staff and limited appointees who qualify will receive a salary increase equivalent to 90% of the pay plan percentage, based on their current budgeted base salary rate.
  5. Notification

    Upon approval by the Regents of the campus merit exercise, deans/directors and vice chancellors are expected to provide to each reviewed academic staff, university staff member and limited appointee notice of what their base salary will be as a result of the pay plan.

Section 4: Guidelines for Graduate Assistants

Pay schedules for graduate assistant category will not be directly impacted as a result of the pay plan exercise but may be separately addressed.

Questions regarding these guidelines may be directed to Unit Business Representatives (UBRs) or Associate Vice Chancellor Dev Venugopalan (x5561 or dv@uwm.edu).

c:

Dev Venugopalan, Associate Vice Chancellor, Academic Affairs
Timothy Danielson, Associate Vice Chancellor, Human Resources
Kristian O’Connor, Chair, University Committee
Kristin Roosevelt, Chair, Academic Staff Committee
Stan Yasaitis, Chair, University Staff Council
Cindy Kluge, Director, Office of Budget and Planning
Trudy Turner, Secretary of University
Unit Business Representatives
Unit Personnel Representatives/HR Partners


Appendix One

Guidelines for Consideration of Solid Performance In a State of Wisconsin Pay Plan

General Guidelines:

  1. These guidelines are distinct and separate from UWM’s Performance Pay Guidelines Outside of a State of Wisconsin Pay Plan and has no impact upon its procedures or guidelines.
  2. The determination of solid performance shall be based upon performance. Race, color, creed, religion, sex, sexual orientation, gender identity or expression, national origin, ancestry, disability, age, pregnancy, marital or parental status, genetic information, arrest record, conviction record, military service, veteran status, membership in any other group with a protected status, and constitutionally protected activities shall not be factors in the determination of solid performance.
  3. Employees who will not be continuing employment in the 2019-20 academic/fiscal year are ineligible for a pay plan salary adjustment.
  4. Any and all pay plan adjustments must be based upon performance; across-the-board compensation adjustments not based on merit are prohibited (TC4).
  5. Individuals and/or groups establishing solid performance designation must be prepared to answer questions from employees regarding their respective designation.

Solid Performance Adjustment Guidelines:

  1. All employees eligible for a pay plan adjustment must be deemed as a solid performer or not. This is a yes/no designation.
  2. Solid performance is an indication of satisfactory performance by an employee when considering the employee’s performance in total.
  3. Employees on a formal performance improvement plan are ineligible for designation as a solid performer.
  4. For employees to be determined less than a solid performer (i.e., unsatisfactory), recent (within one year), clear documentation must exist establishing an employee’s failure to meet expectations and unsatisfactory performance.
  5. If employees are deemed to be solid performers, they will receive the solid performance percentage of the pay plan increase.

Appendix Two

Timeline for 2019-21 Pay Plan

  1. 4/24/19: Final Pay Plan Memo Issued
  2. 5/17/19: Executive Committee/Departmental Solid Performance Exercises Complete – Exercises determining solid performance are complete and submitted to the respective Dean/division head.
  3. 6/14/19: Dean/Provost/Division Head Recommendations for Chancellor’s Discretionary Merit Allocation Complete – Provost/division head recommendations to the Chancellor for consideration of Chancellor’s Discretionary Merit allocation.
  4. 7/5/19: Chancellor Discretionary Merit Complete – Results of the Chancellor’s Discretionary Merit exercise are provided to Provost/Vice Chancellors.

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