Annual 2006-07 Budget Instructions
CHAPTER
5
Unclassified Staff Compensation Plan
I. THE 2006-07 COMPENSATION PACKAGE FOR UNCLASSIFIED STAFF A. Compensation Plan. The 2006-07 compensation package for unclassified staff provides for an average 2.00 percent increase that is effective July 1, 2006 (or the start of Semester I for academic pay basis employes) and an additional 1.00 percent that is effective April 1, 2007 (or the start of pay period 8 for academic pay basis employes). The total distribution is controlled based on 3.02% of your continuing staff base as of June 30, 2006. (The additional 0.02% is due to the rolled-up base that is used for the midyear increase.) All continuing unclassified staff are eligible for a merit compensation increase except employes with unsatisfactory performance or limited by a pay range maximum. B. Single Determination. A single salary increase determination should be made for each eligible appointment. The total merit increase (3.02% average) that is entered into the merit field in the Budget System will be automatically distributed (66.2252%/33.7748%) to the two effective dates when the increase is copied to the Appointment System.
II.
MERIT COMPENSATION PLAN REQUIREMENTS The following summarizes the principal requirements regarding the 2006-07 Merit Compensation Plan. A. General. 1. Increases can only be given to employes whose performance is satisfactory unless a raise to the minimum is required. 2. A resolution passed by the Regents includes a guideline that solid performers should receive not less than one-third of the merit compensation plan. This does not imply or require an across-the-board increase for each individual who receives a "satisfactory" assessment. Rather it reflects a policy that those individuals who have made positive, but not necessarily exceptional, contributions should not be excluded from pay plan increases. This will ensure that exceptional performers are not rewarded exclusively at the expense of the solid performers. This requirement does not apply to those who began their employment late in the 2005-06 fiscal year if the initial appointment letter specifies that the salary carries forward through 2006-07. Also excluded are staff whose performance cannot be fairly assessed because they were hired too far into the 2005-06 fiscal year. They are eligible for increases at the discretion of the department. 3. Pursuant to a recommendation by the Academic Staff Executive Committee, a special justification must be provided to the Dean's office for any academic staff employe with a satisfactory performance record who receives less than 1/3 of the pay plan increase. Rehired annuitants are excluded from this requirement. 4. Academic staff and limited appointments assigned to a salary range are subject to the following limitations: a) The compensation increases, regardless of source or effective date, cannot move a base salary above the 2006-07 salary range maximum unless there is an extraordinary salary range in effect.
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b) If an individual's current full-time rate exceeds the 2006-07 salary grade maximum, the salary increase is limited to 1.51% unless there is an extraordinary range in effect. c) Pay plan funds must be used to bring individuals to their salary grade minimum.
5. Across-the-Board awards are not authorized. 6. All 2006-07 salaries above $240,000 (75% of the salary of the UW System President) are subject to review and approval by the Board of Regents. 7. Agreement on compensation plan increases must be reached between employing budget units which share the appointment of an individual. 8. Notice of salary increases cannot be made until the Chancellor and/or the Board of Regents have approved the recommended levels. 9. Form 2A entry of all compensation plan increases should be proportional to each funding split. B. Separate Monitoring. Faculty and academic staff should be evaluated separately. Pay plan funds cannot be moved from one group to the other except under extraordinary circumstances and only following a request and prior approval of the Office of Human Resources. C. Equity for Women and Men. It is expected that average salary increase percentages for eligible men and eligible women will be equal. This expectation pertains separately to both faculty and academic staff. Significant variance requires the prior approval of the Office of Human Resources. D. Equity in Faculty Salaries. The Office of the Provost established the UW-Madison policy concerning equity in faculty salaries in a memo dated October 3, 2002. That document contains the following information: 1) The purpose: Reaffirming the Merit Basis of Faculty Pay, 2) Timing of salary equity evaluations, 3) Conducting the salary equity evaluation, 4) Funding of equity pay adjustments and 5) Data available from the Provosts office. The memo is available at http://www.wisc.edu/provost/salaryequitypolicy.html. Questions should be directed to Laurie Beth Clark (2-5246), Associate Vice Chancellor for Faculty and Staff Programs. E. Teaching Excellence Award Increases. The University Committee has recommended and the Chancellor has approved providing base salary increases to recipients of existing teaching awards. There are currently up to eleven UW-Madison and UW-System Teaching Awards available each year. In addition to the cash award, a $1,000 base salary increase will be provided to each recipient in the fiscal year following receipt of the award. The award will be treated as a merit add-on. Final merit control levels will be adjusted for these awards. Permanent funding will be provided with a Fund 101 supplement. F.Distribution and Control Requirements 1. Funds 101, 105-119, 126, 177, 178 and 402 Merit Compensation Plan Distribution. Each state supported UW-Madison budget unit will receive compensation plan funding based on 3.02% of the October 2005 payroll. No extra or supplemental funding will be available. The supplement will appear on the planning allocation schedules as "2006-07 Unclassified Merit Adjustment 3.02%." For funds other than Fund 101, the supplement on the planning allocation reflects the supplement provided by UW System.
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a) Supplementing the Pay Plan Allocation from Existing Base Resources. It is possible that the GPR allocations may not be sufficient to provide average increases of 3.02% of the current level of state supported continuing faculty, limited appointees, and academic staff, excluding those individuals whose salaries are set by the Chancellor. If the Fund 101, 105, 108, 116, 117, 118, 119, 126, 177, 178 and 402 pay plan allocations do not equal 3.02% of the adjusted continuing base, the budget unit must use its own existing base funds to supplement the pay plan allocation. It is possible that the performance evaluation process will cause a budget unit to award higher merit increases to its state supported staff than to staff on other funds. This would require additional base funds to supplement the pay plan allocation. However, the all funds percentage increase for continuing staff should not exceed the authorized pay plan percentage of 3.02%. b) Calculation of the Pay Plan Percentage. Each budget unit is responsible for ensuring that the all funds average of its recommended pay plan increase does not exceed the 3.02% pay plan. After all merit increases have been entered, any remaining portion of the allocations can be used as an adjustment to increase the respective salary rates of vacant positions. Budget Merit Increase Analysis reports are available on our web site and should prove helpful in determining the continuing staff pay plan percentages. The reports reflect the 2006-07 budget level for filled appointments budgeted in both 2005-06 and 2006-07, as well as those appearing in the budget for the first time and on the payroll before July (i.e., those with a Code A transaction type in Column 1 of the Form 2A). The report excludes student appointees. The salary used to compute the allowable 3.02% merit is based on a total that includes midyear and proposed adjustments, including promotional salary increases. There is no need to make any adjustments to the Budget Merit Increase Analysis to arrive at the total amount of merit available (except for the Teaching Excellence Award Increase). Included in the report detail and totals are those portions of annual pay basis appointments from your unit budgeted in the Division of Continuing Studies (A-93). Also included in the report detail, but not in the totals, are individuals who are a part of the continuing staff but who for one reason or another are excluded from the continuing staff salary base. For example, individuals whose salaries will be set by the Chancellor and individuals with nonstate supported appointments with nonstandard appointment dates are shown in the report detail but as non-adds (NA). However, adjustments for these situations and Teaching Excellence Award Increases must be made if you are using terminal program BSUM (pages 7-11) to check your maximum allowable merit. Merit Increase Analysis Reports are available in the Budget Development Reports section of the Budget Office website (www.mbo.wisc.edu). 2. Part-Time Staff, New Appointees, Leave of Absence and Other Special Cases. All continuing faculty, limited appointees, academic staff and employes-in-training, including those budgeted for 2006-07 who are returning from 2005-06 leaves without pay and those being budgeted as on leave for 2006-07, are eligible for pay plan increases. Pay plan increases given to those who are on leave in 2006-07 will not be included in the calculation of the pay plan percentage increase. It is expected that the increases assigned to individuals on leave in 2006-07 will approximate 3.02% for the group. Rehired annuitants on renewable appointments are eligible for merit increases at the discretion of the department. Merit increases are not required for this appointment group even when their performance is satisfactory or above. Rehired
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annuitants on terminal appointments may be reappointed at a higher rate outside of the pay plan process. 3. Base Adjustments and Required Compensation Plan Increases. Some base budget salary adjustments, by their nature, require that the individual be granted a merit increase. In other cases, the base adjustment should not be a consideration when determining the compensation plan increase, i.e., should be based on the performance of the individual. a) Individual Requires at least 1/3 of the Merit Compensation Plan. Proposed major change in duties or group equity adjustments require that each faculty and academic staff member receive at least 1.01% (1/3 of the merit compensation plan consistent with the Regents policy on pay plan for solid performers). MAJOR CHANGE IN DUTIES (RECLASSIFICATION) - CODE 001 The duties and responsibilities of a filled unclassified position may change substantively for a variety of reasons, including changes in technology, program goals, or organization. The University has the right to assign and reassign duties to an employe, based upon the needs of the work unit. GROUP EQUITY - CODE 005 To correct an inequity (group of at least three similarly situated employes) identified through analyses of faculty or academic staff with comparable training, experience and responsibilities; or created by hiring new employes at rates higher than those of existing staff provided the rates of the new employes are necessary in order to recruit well-qualified individuals. b) Individual Requires at least Average Compensation Plan Increases. Midyear or proposed market factor, individual equity, and promotion adjustments require that each faculty and academic staff member receive at least the full average merit compensation plan increase, i.e., 3.02%. PROMOTION - CODE 003 Based on job growth, experience/training, performance, etc. (using established University or departmental criteria), a faculty or academic staff may be promoted within his/her current appointment. (This includes the promotional increases budgeted in the Faculty Promotions field). INDIVIDUAL EQUITY - CODE 006 To correct an individual inequity identified through analysis of faculty or academic staff with comparable training, experience and responsibilities; or created by hiring new employes at rates higher than those of existing staff--provided the rates of the new employes are necessary in order to recruit well-qualified individuals. MARKET FACTOR - CODE 022 To retain an individual where either there (1) has been an outside offer of employment (with comparable duties and responsibilities), (2) is a recent pattern of faculty or academic staff in the same discipline/unit leaving UW employment to take outside positions or received outside offers, (3) is evidence of potential retention problems. Chap5FY7.doc -41-24-06
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c) Pay Plan Increase Permitted. The proposed base budget adjustment categories below should not be a consideration when determining compensation plan increases, i.e., compensation plan increases should be based on the performance of the individual. EXTRAMURAL SCHEDULE CHANGE (MARKET) - CODE 010 Normally for an employe-in-training, e.g., when NIH changes its salary levels. EXTERNAL RATE SETTING (MARKET) - CODE 011 Salary setting is outside the control of the University, e.g., VA Hospital, UWHC, County Agents. UW MEDICAL FOUNDATION (FUNDING) - CODE 012 A change in UW Medical Foundation (UWMF) percentage that results in a change to the base salary. TRAINING PROGRAM ( RECLASSIFICATION) - CODE 013 To reflect change in duties associated with the completion of an approved training program. TEMPORARY (RECLASSIFICATION) - CODE 025 A temporary change in duties (see Code 001 above). 4. Staff Supported on Nonstate Funds. Faculty, academic staff, limited employes and employes-in-training appointed on nonstate funds (including gifts, grants, contracts and auxiliary revenue) or on leave, are subject to the same policies as state funded staff. Salary recommendations for these individuals, including increases accomplished outside the budget process, must be monitored for consistency so that the overall distribution does not exceed the merit compensation plan limits. Budget units with several funding sources may exceed the proposed pay plan percentages on one fund by reducing the percentages on some other fund so that the all funds distribution does not exceed 3.02%. That is, the staff on nonstate funds may be granted increases in excess of the authorized pay plan percentage only if a sufficient number of staff on state funds receive correspondingly lower increases so that the overall increase rate for all funds does not exceed 3.02%. No additional pay plan allocations for state funded positions will be given because of a higher percentage recommendation. However, existing Fund 101-119, 126, 177, 178, and 402 base dollars may be used if the all funds distribution does not exceed 3.02%. 5. Salary Based on Performance. Merit increases for faculty shall be recommended the on basis of positive contributions by the faculty member to teaching, research or scholarly activity, public service and/or supportive functions of the university. Assessment of teaching faculty shall include consideration of student evaluations. Merit increases for academic, limited and other unclassified staff will be based on supervisory assessment of meritorious performance in their areas of assigned responsibility.
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While it is permissible to grant a higher average increase to a particular employe category (e.g., academic staff) when the relative performance of the category is higher than the performance level of others, in general the average merit increase percentage of each of the several groups and title categories must approximately equal the authorized pay plan percentage increases. Any exceptions will require prior approval of the Office of Human Resources. Performance evaluations must be made by using the standards for the position or employment category; no title or title category, per se, is automatically entitled to special merit consideration. Recommendations shall be determined equitably, in compliance with Federal and State law and without regard to political views or source of salary support. Forms of employment discrimination prohibited by Federal law include: race, color, national origin, sex, religion, age-40-or-over, disability, disabled and Viet Nam Era veteran, and retaliation. Wisconsin law prohibits these forms of discrimination, as well as discrimination on the basis of ancestry, creed, age, sexual orientation, marital status, arrest or conviction record, and Guard or Reserve status. Emphasis for meritorious instructional services (Teaching Excellence) should continue to be given in determining merit increases. The Faculty Senate, with the full support of the Chancellor and Deans, has established the policy that "Colleges, schools, departments, and programs, as appropriate to their respective missions, should allocate at least 20% of the annual merit pool to reward excellence in teaching (Faculty Document 976a dated February 1, 1993). In addition, each college should allocate a portion of the Dean's special merit pool to faculty members who have maintained a record of teaching excellence." You do not have to identify, by individual, a specific dollar amount of merit that is attributable to teaching excellence; however, at the end of the merit process you may need to be able to identify those faculty and instructional academic staff whose merit increases significantly reflect teaching excellence. The merit increases for all supervisory personnel must also be based on an evaluation of their efforts and results in advancing the Affirmative Action and Equal Employment Opportunity goals of the university, in addition to other criteria. Each supervisor must be informed of the fact that these criteria are being applied and that they also will be applied in subsequent years. A report on the progress made toward utilization of females and minorities in academic departments will be distributed annually so that departmental affirmative action efforts may be recognized. 6. Equality of Salary Increases for Women as a Group and Men as a Group. It is expected that pay plan increases for men as a group and women as a group will be equal across the campus as well as in colleges and major budget units. This applies separately to both faculty and to academic staff. We know, however, that there will be specific situations where such equality can only be close rather than exact. To assist deans and directors in determining the average increase percentages being recommended for women and men, computer reports are available which list by name and title all female members of a division in descending order of total compensation plan increase. Similar reports are available for males. In addition, these reports will provide for each appointment the current year rate (including any adjustments that have previously been approved), the total compensation plan increase amount, the 2006-07 proposed rate and the department where employed. The Merit Increase Analysis Reports at the Budget Office website should be helpful when analyzing compensation plan increases because they group males and females by rank and provides the increase total for each. BSUM also provides male/female merit summary information for all continuing staff, faculty, academic staff and employe-in-training.
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7. Salary Increases for Faculty and Academic Staff. Compensation increase authority cannot be moved between the two employe groups without prior approval from the Office of Human Resources. 8. Procedures for Determining Faculty Salary Recommendations. All departments should be reminded that the faculty has established procedural requirements which must be followed when establishing faculty salary recommendations. Failure to follow the Faculty Policies and Procedures (FPP) (http://www.secfac.wisc.edu/governance/FPP/Table_of_Contents.htm) could result in technical defects in the salary recommendations which might later be seized upon by a disappointed faculty member in an attempt to force a reconsideration of the recommendations. To avoid this possibility, the following requirements must be followed: a) Departmental authority to recommend salaries is vested exclusively in the departmental executive committee (Chapters 5.11. and 5.21.A., FPP); no recommendations can be made without the direct or delegated participation of the executive committee. b) Where the departmental executive committee delegates its authority over salary recommendations to a subcommittee or to the departmental chairperson, that delegation must be by means of an annual vote of the executive committee (Chapter 5.22.A., FPP). While it may be tradition in a particular department for there to be a delegation to the chairperson, that delegation must be expressly reaffirmed by an annual vote. c) The departmental executive committee should annually review the performance of each member of the department. Chapter 5.21.D.1., FPP, provides: The departmental executive committee shall provide for the periodic review of the performance of every faculty member. Such reviews normally shall be conducted as part of the annual determination of recommendations for merit salary increments. Such reviews shall provide for a faculty member to be heard on his/her own case, if he/she wishes, and for the faculty member to be informed of the outcome of the review. Deans and Directors are responsible for assuring that all departments in their schools and colleges comply with these requirements. It is particularly important that the Deans and Directors assure that there is an annual review of the performance of each junior faculty member and that there is documentation that this process has occurred. A copy of this documentation must be given to each junior faculty member and the departments must retain this documentation in their files. 9. Procedure for Determining Academic Staff Salary Recommendations. All principal investigators and supervisors of academic staff are encouraged to take steps to ensure that academic staff have the opportunity to present information relevant to their performance during the current year. Professional activities reports and other written or verbal statements of individual accomplishments should be solicited to ensure that the supervisor has complete information on which to evaluate the employe.
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It is also important that all supervisors of academic staff understand and follow the policy and procedures contained in Chapter 10, Performance Reviews (revised 9/1/00), of the UW-Madison Academic Staff Policies and Procedures (ASPP) (http://wiscinfo.doit.wisc.edu/acstaff/ASPP.pdf). Chapter 10 provides information on the purposes of performance reviews and the methods available for conducting them. ASPP Chapter 10 reads, in part: The diversity of programs at the University of Wisconsin-Madison has created an environment in which many methods of performance reviews have been developed to meet specialized needs of different units. Units are encouraged to develop, implement, and maintain review procedures that best meet their needs. Academic staff shall participate in establishing the criteria and defining the methods of academic staff performance review to be used in the unit. The Office of Human Resources has samples of various evaluation instruments now being used, and the staff can assist units interested in improving their evaluation procedures. Any evaluation criteria developed are subject to the Academic Staff Policies and Procedures. This is particularly important because of those rare occasions when grievances or complaints arise. 10. Notification of Salary Changes. Deans and directors are responsible for assuring that the individuals originally responsible for a salary recommendation are informed of any subsequent modification. If an individual salary rec...