STAFF BROWN BAG LUNCH MEETING Furlough/Salary Reduction Plan Monday, August 31 st HUB 302

Background:  Unprecedented $813 million systemwide deficit in state support  At UC Riverside, the deficit is in excess of $50 million  July 2009 – UC Regents  Declared an extreme financial emergency  Approved a 12-month systemwide furlough plan  At UC Riverside, the Furlough plan will result in $13M in salary savings

Furlough/Salary Reduction Plan Summary:  Effective September 1, August 31, 2010  Employee salaries to be reduced, based on a graduated scale, in even increments each month  Employees receive a specified number of furlough days aligned with their respective salary reduction  Some furlough days will be taken during the campus closures  Remaining furlough days will be discretionary based on department need

Key Facts:  Participation  Policy-covered (non-represented) career, limited, and partial year career staff  Regular status and probationary employees (full-and part-time)  Academic & non-senate faculty  Non-senate academics  Senior Management Group Members  Represented staff and academic employee participation is subject to collective bargaining agreements

 Exclusions  Academic and staff employees whose pay is: o funded entirely by research and extramural funds; o partially funded from extramural funds, the portion of pay that is funded from extramural funds;  Student employees, including postdoctoral, graduate and undergraduate employees;  Employees working reduced hours under the START program if their voluntary reduction is already equal to or exceeds the percent reduction for their respective pay band;  Foreign national employees working pursuant to H visas;  Employees whose participation is precluded by law.

 Salary Reduction  4% - 10% graduated scale Note: Salary Band Determination -- Based on employee’s full-time salary rate, including administrative stipends, as of January 1, 2009, or the hire date, if later Note: Senior Management Group members will receive a maximum of 10 furlough days, regardless of pay scale TierSalaryPercent Reduction Furlough Reduction Days 1$0 - $40,0004%11 2$40,001 – $46,0005%13 3$46,001 – $60,0006%16 4$60,001 – $90,0007%18 5$90,001 – $180,0008%21 6$180,001 – $240,0009%24 7Over $240,00010%26

 Furlough Day Accrual & Usage  Accrual : hours are added to a furlough bank each month  Usage: o Campus Proposed Closure Days: December 21, 22, 23, 28, 29, and 30, 2009 March 25, 2010 o Furloughs may also be taken throughout the duration of the Plan, with supervisor approval. o Intent is to use days as they are accrued, however, with supervisor approval, furlough days may be: Saved up and used in blocks prior to the end of the furlough term Used before they actually are accrued to cover the furlough/closure days Used as early as September 1, 2009 o All furlough days must be used by August 31, 2010 o Furlough time will expire at the end of the Furlough Plan term

Additional Information:  A Frequently Asked Questions resource can be found on the UCR Budget News Website:  For questions specific to:  Furlough/Salary Reduction Plan o Heidie Rhodes, o Cynthia Seneriz, o Marilyn Voce,  Payroll: o Gabe Nwandu, o Roberta Nardico,  Bargaining unit/represented employees o Jadie Lee, Thank You