UWS Pay Plan Distribution guidelines An Overview UW System Human Resources November 16, 2017

Overview Background UPS Operational Policy TC 4 Institution Pay Plan Guidelines Proposed 2018-19 Pay Plan Compensation Administration Tool (CAT) 2018-19 Pay Plan Implementation Timeline Summary 2

Background Wis. Stat. § 230.12(3)(e) Board of Regents does not have authority to approve a pay plan Board of Regents recommends a pay plan to the Administrator of the State’s Division of Personnel Management (DPM) DPM Administrator submits pay plan recommendation to the Legislature’s Joint Committee on Employment Relations (JCOER) Final authority for the approval of a pay plan rests with JCOER 3

Background Regent Policy Document 20-21, University Personnel Systems Delegates to the President of the University of Wisconsin System, except for the University of Wisconsin-Madison, the authority to formulate operating policies to administer the personnel system 4

UPS Operational Policy TC 4: 2017-19 UW System Pay Plan Distribution Guidelines Provides Chancellors with guidance on the distribution of the approved pay plan for the university workforce Chancellors shall develop, oversee and coordinate pay plan administration using the processes and practices of shared institutional governance that are operative at each respective institution Each Chancellor is directed to proceed with faculty, academic staff, university staff, university staff projects, 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 The 2017-19 compensation adjustments for faculty, academic staff, university staff, and limited appointees shall be distributed on the basis of merit and on the basis of solid performance 5

What is the Proposed Pay Plan? Proposed pay plan: UW System institutions will distribute 4.04%* for FY2018-19. Actual dollar amounts or percentage salary increases employees receive are based on the institution’s performance-based guidelines and reward structure.** Employees will see pay plan adjustments in two installments (see schedule on slide 9). Joint Committee on Employee Relations (JCOER) has not met to approve the proposed pay plan. *4.04% is the compounded rate, based on two installments of 2%. **Individual employees are not entitled to nor guaranteed an increase of 4.04%. 6

Institution Pay Plan Distribution Guidelines Institution pay pan distribution guidelines should include at a minimum: Eligibility criteria for pay plan adjustments Process of how solid performance/merit will be determined Chancellors’ decision to designate up to 15% of the 4.04% for meritorious, outstanding contributions or special compensation needs Process of how pay plan adjustments will be calculated including the decision on the Chancellor’s 15% Methods to strive to ensure equity across all employee categories 7

Institution Pay Plan Distribution Guidelines Institution pay pan distribution guidelines should not include: Across-the-board pay plan adjustments Pay plan adjustments for staff members covered by collective bargaining agreements Pay plan adjustments based on comparisons with external market determinations Play plan adjustments that increase the salary above the applicable salary or pay range maxima Note – Chancellors’ Salary Adjustments are determined by the Board of Regents and are not a part of the institution pay plan guidelines. 8

Proposed Pay Plan Installment Schedule Employees First Installment Salary Adjustment Effective Dates* Second Installment 12-month staff paid monthly July 1, 2018 January 1, 2019 9-month staff paid monthly Beginning of academic year contract calendar Beginning of second semester contract calendar 12-month staff paid biweekly Beginning of the biweekly pay period that includes July 1, 2018 Beginning of the biweekly pay period that includes January 1, 2019 Other appointment periods To be determined based on appointment dates *Final effective dates will be determined by JCOER. Effective dates do not represent when employees will see the pay plan increase in their paychecks. 9

Compensation Administration Tool (CAT) Compensation Administration Tool (CAT) was implemented in FY16 and contains budgeted salary detail Institutions will enter the total pay plan adjustment into the CAT The budgeted annual salary, after entering the full pay plan adjustment and any other salary adjustments, will be the employee’s final annual salary as of January 1st, 2019 or the beginning of second semester The UW Service Center will split the pay plan amount for each employee and will load those amounts into HRS at the designated pay plan implementation dates 10

2018-19 Pay Plan Implementation Timeline Institution pay plan determination timelines must accommodate the Annual Budget Process calendar Institutions will develop internal deadlines to meet UW System Administration due dates UW System Administration Annual Budget due dates: April 2 for Comprehensive institutions April 16 for UW-Madison, UW-Milwaukee, UW Colleges & UW-Extension Completed budgets including 2018-19 pay plan determinations and CAT entry must be completed prior to the due dates Pay plan determination will be for the total pay plan percentage June, 2018 – Board of Regents approves 2018-19 budget including salaries June, 2018 – Institutions notify staff of 2018-19 salary increases. 11

Summary Pay plan adjustments must be based on solid (satisfactory) performance/merit Institutions need to determine eligibility and pay plan determination processes Proposed pay plan is 4.04% paid in two installments Pay plan determinations will be for the total pay plan percentage Completed budgets including 2018-19 pay plan determinations and CAT entry must be completed prior to the due dates 12

References Regent Policy Document 20-21: University Personnel Systems UPS Operational Policy TC 4: 2017-19 UW System Pay Plan Distribution Guidelines Compensation Administration Tool 13

Institutional Contact Information Please insert your institution’s contacts here: Human Resources Budget Office Other organizational contacts deemed appropriate 14

Discussion 15