Updated:
May 13, 2022
One-time Lump Sum Compensation Payment
Introduction
UWM will be using centrally held one-time (not base) funds to support retention and morale of UWM’s employees through a one-time lump sum compensation payment as detailed below.
The reasons for the distribution are as follows:
- To offset unprecedented inflation that is driving costs and salaries higher across the nation as the 2% pay plan will not come close to offsetting those costs.
- To help address competition for talent and increased turnover.
- To express appreciation to employees and boost morale for extra work and furloughs undertaken to respond to the pandemic, and to cover for employee turnover and COVID-related leave.
Eligibility and Limitations
A lump sum compensation payment is not an entitlement but rather is intended to assist the Chancellor in meeting the strategic priority of employee compensation. The lump sum payments described in this document are one-time, do not affect an employee’s base salary, and are intended to be distributed in the spring of 2022.
Who is Eligible for a Lump Sum Payment?
In order to be eligible for a full payment, an employee must meet all of the criteria noted below:
- Faculty, Academic Staff, University Staff (including craft workers) with an expectation of continued employment, University Staff Project appointees, Limited Appointees, Post-Doctoral Fellows and Graduate Assistants;
- Solid performer (see further description below); and
- Began employment at UWM before October 1, 2021.
An employee who began employment at UWM on or after October 1, 2021, and before March 1, 2022, is eligible for a half payment as detailed below.
Who is Ineligible for a Lump Sum Payment?
- Any employee who began employment at UWM on or after March 1, 2022
- University Staff Temporary employees (LTEs)
- Student employees
- Rehired UWM Annuitants as defined in UWM’s Post-Retirement Employment Policy, SAAP 7-12
- Any employee paid exclusively on a lump sum basis or with de minimis FTE (less than 5%)
- Any employee not deemed a solid performer (see description below)
- Any employee not employed by UWM at the date of payment of the lump sum
How is Solid Performance Determined?
- Faculty, Academic Staff, University Staff, Limited Staff, Graduate Assistants, and Post-Doctoral Fellows are deemed solid performers unless any one or more of the following apply:
- They were deemed not to be solid performers for purposes of the January 2022 increment of the FY 2021-23 pay plan, unless the individual successfully completed a performance improvement plan prior to March 1, 2022; or
- They were notified of their non-renewal on or before March 15, 2022, or a dismissal process is pending as of March 15, 2022, due to reason of performance; or
- They are under a formal or concentrated performance improvement plan.
- Solid performance is a yes/no determination.
How will the Amount of the Lump Sum Payment be Calculated?
For employees other than Graduate Assistants hired before October 1, 2021:
- An employee’s base salary will be multiplied by 2.0%.
- If the number is equal to or greater than $1,000 and the employee is full-time, that is the amount of their lump sum payment.
- For example, if an employee is full-time and has a base salary of $75,000, the base salary multiplied by 2.0% equals a lump sum payment of $1,500.
- If calculated payment is less than $1,000 and the employee is full-time, the amount of the lump sum payment will be raised to $1,000.
- For example, if an employee is full-time and has a base salary of $40,000, the base salary multiplied by 2.0% equals $800. The employee’s lump sum payment will be $1,000.
- If the employee is part-time, the lump sum payment will be multiplied by the employee’s FTE to yield a final amount.
- For example, if the employee’s base salary is $75,000 and the employee is .5 FTE, the base salary multiplied by 2.0% equals $1,500, multiplied by the employee’s FTE of .5 equals a lump sum payment of $750.
- As a second example, if the employee’s base salary is $40,000 and the employee is .5 FTE, the base salary multiplied by 2.0% equals $800, which is below the minimum payment of $1,000. The payment is raised to $1,000, then multiplied by the employee’s FTE (.5) which equals a final lump sum payment of $500.
For Graduate Assistants hired before October 1, 2021:
- The payment will be a flat amount of $500.
Eligible employees hired on or after October 1, 2021, will be receive half the amount of that received by similarly situated employees hired prior to October 1, 2021.
- For example, if a part-time employee’s payment is calculated to be $500 through the process described above and the employee began employment on February 1, 2022, the employee’s payment will be reduced by half to $250.
- As a second example, a Graduate Assistant who began work at UWM in the Spring semester of 2022 will receive a payment of $250.
Timeline
- In implementing the eligibility criteria, the Department of Human Resources will first use information collected in December of 2021 in planning for the January 2022 pay plan increment. Each division head is responsible for providing information to Human Resources to confirm solid performance by April 4, 2022. Timely provision of this additional information is necessary to ensure timely payment to employees.
- The lump sum payments are expected to be paid on or around the May 19, 2022, paycheck. The dates of payment are contingent upon employees’ solid performance designation being identified by the above date, as well as certain other technical steps requiring assistance from the UW Service Center.
Other Conditions
- Funding source of an employee’s appointment is not relevant to eligibility. Lump sum payments will be paid from central funding including for auxiliary-funded positions.
- Lump sum payments are derived from the employee’s base salary and FTE as of March 1, 2022.
- Payments will be made as part of a regular, on-cycle paycheck, increasing the amount of the paycheck. Taxes will be taken at the standard rate, calculated based on the gross amount of the check.
- Other income outside the employee’s base salary, e.g., overload or overtime or temporary base payments, are not considered in determining the employee’s lump sum payment.
- These one-time, lump sum payments count toward creditable earnings under the Wisconsin Retirement System.
- Employees on a leave of absence or sabbatical will receive a lump sum payment upon their return to active employment; they will not receive payment if they do not return to active employment.
- Individuals who have retired and are no longer working as of the lump sum payment date, but who are still on UWM’s payroll due to use of vacation or other paid leave after the last day worked, are not considered to be active employees and are not eligible for the lump sum payment.
- Employees on a position specific furlough will be awarded payment based on their FTE as of March 1, 2022, with adjustment upon return to position’s contracted FTE.
- Eligibility for a lump sum payment is not an appealable issue. If an employee believes a procedural/mathematical error has occurred in the process, they should contact the Department of Human Resources.