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August 25, 2000 To: Managers and Unit Heads Re: Proposed 2000-01 Salary Plan for UCSC Staff This is to notify the campus of the proposed 2000-01 salary plan for UCSC staff employees. As you are probably aware, the 2000-01 California State budget includes funding for regular salary merit increases and salary range adjustments for UC staff, and a special augmentation for additional salary increases primarily for lower paid employees. Both increases are intended to be effective October 1, 2000. Based on the budget action, the campus proposes the following 2000-01 salary plans for staff. A. Non-Exclusively Represented Employees (Non-represented Staff covered by Personnel Policies for Staff Members) Proposed merits and range adjustments are described below for non-exclusively represented staff: Merit increases for employees in merit-based pay plans are funded by a combination of State funded range adjustment and merit funds, effective 10/1/00. Funds for the 2000-01 merits will be allocated to the Principal Officers and Administrative Officers for distribution to eligible Professional and Support Staff (PSS) and Managers and Senior Professional Staff (MSP) in their respective areas. The fund pool is 3.5%. Merit amounts will be reflected in November 1, 2000 paychecks. The salary range structures for Professional and Support Staff Managers and Senior Professionals will be adjusted by approximately 4% effective 10/1/00. B. Exclusively Represented Employees For exclusively represented employees, salary actions are subject to the terms of existing collective bargaining agreements and/or to meeting and conferring in accordance with the Higher Education Employer-Employee Relations Act (HEERA), as appropriate. C. Special State Budget Augmentation In addition to the regular range plus merit funding, the University also received a special State budget augmentation of $19 million for salaries of State-funded staff employees and non-Senate academic employees who are not eligible for the faculty market-based parity adjustment. Consistent with the Governor's intent, this funding is to be used primarily to improve the compensation of lower paid employees. Non-Exclusively Represented Employees (Non-represented Staff covered by Personnel Policies for Staff Members) In addition to the merit increases, non-represented staff whose annual salary rate is less than or equal to $40,000 will receive an additional 2% salary increase, and those with annual salary rates above $40,000 and below $80,000 will receive an additional 1% salary increase. However, non-represented clerical employees will receive a 2% salary increase regardless of their current salary rate. These increases will be applied to the pay rates of merit eligible employees prior to calculation of the merit increase. Increases will be reflected in the first payroll check that includes October earnings. In addition to the above, non-represented clerical staff who receive a performance rating of met expectations (or similar rating) or better will receive an additional 1% after the merit process. 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. Exclusively Represented Employees: As mentioned above, salary actions for exclusively represented employees must be negotiated before they can be implemented. 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. 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 may be necessary (such as equity issues between employees and their supervisors). If this occurs, UC 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. Please share this information with affected employees in your area. If you have any questions or comments, please contact Judith Martin-Hoyt, Compensation Manager, jmh@cats.ucsc.edu, by September 22, 2000. Sincerely, Willeen McQuitta, Director Staff Human Resources
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