Salary Administration and Use of OOA Salary Turnover Savings

*While these guidelines apply to all OOA units regardless of fund sources, the use of the OOA turnover savings account is restricted to those actions affecting employees permanently budgeted on 199xx or student fee funds.

Role of the Vice Chancellor’s Office

Effective July 2000, management of the centrally campus salary turnover funds was delegated to each Dean and Vice Chancellor. With this delegation came the responsibility for determining the most strategic use and oversight for salary and budget actions that might impact the use of these funds. Such actions may include down grade of positions, elimination of budgeted FTE, increase in budgeted FTE, new hire salary offers, reclassifications, stipends, vacated positions and in some cases equity adjustments.

A significant change in practice is also effective July 2000; that is all newly created positions are funded at midpoint but budgeted at first-quartile. The difference between first-quartile and midpoint is transferred to OOA salary turnover savings account when the provision is established. All open career positions of 50 percent or more should be permanently budgeted in Sub S.

An on-going Office of Administration goal is to ensure an equitable and consistent application of policy/process between the many diverse units within OOA. From a process or philosophical perspective, this means that similar issues are considered when proposing salary-related actions.

The following guidelines address each of the relevant salary actions and the use of turnover savings. The appropriate current year budget (CB) or permanent base budget (BB) actions are noted. The role of the staff in the Vice Chancellor’s office is to review budget and salary actions to ensure fair and equitable application of established policies within OOA. Because this is a pilot year for decentralizing salary turnover savings to the Deans and Vice Chancellor’s, the following process and guidelines will be reviewed periodically to ensure fiscal and program integrity.

Down Grade of a Position

When a filled position is down graded, the department is responsible for returning to the salary turnover savings account, the funds associated with the difference between the exit salary of the old position and the budgeted level of the new position. This also applies to positions that are vacated and then down graded.

Department Action:

• Current Budget: No action and department retains current year savings.
• Base Budget: Department initiates BB document to credit salary savings account for the difference between exit salary and budgeted salary.

Deleting a Budgeted FTE

When a position is eliminated, the department is responsible for returning the funds associated with the difference between the exit salary and the budgeted level on the base/permanent budget only.

Department Action:

• Current Budget: No action and department retains current year savings.
• Base Budget: Department initiates BB document to credit salary savings for the difference between exit salary and budgeted amount.

Adding a Budgeted FTE

When a position is added, the department is responsible for funding the position at midpoint. The difference between midpoint and first quartile is transferred to the salary turnover savings account. The department establishes the position/provision budget at first quartile.

Department Action:

• Current Budget: No action and department funds full current year cost.
• Base Budget: Department initiates BB document that establishes provision/position in departmental account and transfers the difference between first quartile and midpoint to salary savings. Include provision number in documentation.

Vacated Positions

When a position is vacated, the department is responsible for returning to the salary turnover savings account the difference between the exit salary and the budgeted level of the position.

Department Action:

• Current Budget: No action and department retains current year savings.
• Base Budget: Department initiates BB document that transfers the difference between first quartile and exit salary to the salary savings account. Include provision number in documentation.

New Hire Offers Over the First Quartile

All salary offers over midpoint must be reviewed through the Vice Chancellor’s office (Marion Randall) before an offer is made. Individual units are authorized to make salary offers up to mid point without pre-approval. However, all salary offers over first quartile should be justified by addressing relevant issues such as market data, recruitment difficulties, and possible internal equity issues. This information may be included in the hire packet reviewed by OOA or via a separate communication, verbal or written.

Department Action:

• Current Budget: Department funds the cost for above the first quartile offers.
• Base Budget: Department initiates BB document for funding the difference between the first-quartile and midpoint from salary savings account. The department funds all costs above mid point.

Reclassification

Reclassification should be considered if an employee is consistently performing duties beyond the scope of their current job. Reclassification should not be used to correct equity issues. For reclassifications to be eligible for funding from salary savings, Marion Randall must review (the proposed new salary) after approval by Human Resources.

An upward reclassification is usually accompanied by a salary action. The salary increase may range from 0 percent to 10 percent or up to first quartile, whichever is greater. In some cases an increase greater than 10 percent may be warranted. Salary should be justified by addressing relevant issues such as market data, recruitment difficulties, performance history and possible internal equity issues.

Department Action:

• Current Budget: Department initiates a CB document for 50 percent of reclassification cost from salary savings account. The remaining 50 percent of the cost is funded from department operating funds.
• Base Budget: Department initiates BB document for funding from salary savings account to the first quartile of the new position or up to 10 percent of the salary increase, whichever is greater. If the cost of reclassification is greater than noted above, OOA and the department each fund one-half of the additional cost.

Stipends

Stipends are used to provide additional compensation to employees who have assumed temporary responsibilities that are beyond the current scope of their classification for a limited or defined period. A stipend is a temporary payment that should not exceed the duration of one year. As a general guideline, stipend amounts are equal to a 10 percent increase in salary or first quartile of the next higher grade, whichever is greater. Use of salary savings must be requested in writing, including a clearly stated rationale, and approved through the Vice Chancellor’s office (Marion Randall or Kim Rhodes). The Vice Chancellor’s office must be notified of all stipends irrespective of requesting the use of turnover savings to fund such stipends. Central OOA funding of stipends will typically only be approved in the case of demonstrated financial need on the department.

Department Action:

• Current Budget: Funding dependent on specifics regarding stipend. Kim Rhodes will advise department of funding outcome.
• Base Budget: No action applicable.

Equity Adjustments

Equity adjustments are intended to recognize critical and/or unusual pay administration problems. Equity adjustments outside of the normal salary programs may include issues such as external pressure in high demand areas, internal salary compression, and/or retention considerations. Equity adjustments are not granted to reward performance.

All requests for equity adjustments must be submitted to the Vice Chancellor’s Office (Marion Randall). Requests should be in writing and clearly state the rationale for the proposed equity increase. Funding of equity adjustments will typically only be approved in very limited and specific circumstances.

In limited cases, OOA may offset the cost of certain equity adjustments if the adjustment results from a class of employees undergoing a systematic review, i.e. adjustment to a particular title code. Any request for the use of turnover savings must be directed to the Vice Chancellor’s office consistent with the items stated above.

Department action:

• Current Budget: Funding dependent on specifics regarding equity adjustment. Kim Rhodes will advise department of funding outcome.
• Base Budget: Funding dependent on specifics regarding equity adjustment. Kim Rhodes will advise department of funding outcome.

Documentation

All budget documents must include the following:

1. provision number or person being replaced
2. title code, and salary action calculation
3. note that appropriate approvals are on file
4. brief description of the reason for action

2000-01 OOA Turnover Savings Policy

Effective July 1, 2000, all newly created positions will be funded at midpoint—for open range series that is mid-point of the range and for step series that is step 3. However, positions in the open range series should be budgeted in dept at first quartile, while positions in the step series should be budgeted at step 1. The difference between those funded and budgeted levels should be transferred to the OOA turnover account (2032001).

Question: Who provides or retains salary action funding for staff positions?
Answer: It depends on the fund source of the position and the type of salary action. Examples are displayed in the following table.

*Includes all 199xx fund sources