Effective June 9, 2008

This 2008-2009 Pay Plan is for Civil Service employees who are covered under the Civil Service Rules.

Effective June 9, 2008, units are required to participate in either an across-the-board or merit salary increase program. Units will automatically be included in the across-the-board increase program unless they opt for a merit salary increase program. The individual in the unit's top leadership position has the authority to decide which of the two salary increase programs will be followed by all of the departments (defined as having a 4 character PeopleSoft department code, e.g., 775A) within the unit. This decision may alternatively be delegated to the head(s) of individual departments (e.g., all civil service employees within one PeopleSoft department code) within the larger unit.

Salary Range and Base Pay Changes

Effective June 9, 2008, pay range minimums and maximums will be increased by 2.75%. No employee may be paid below the salary range minimum or above the salary range maximum.

Effective June 9, 2008, there will be a 3.25% increase in the across-the-board and merit salary increase programs.

Employees who are at their maximum or will reach their maximum as a result of a base salary increase are entitled to receive a lump sum payment for the percent increase exceeding the salary range maximum.

Pay increases, whether across-the-board or merit based, can be withheld due to previously documented unsatisfactory work performance. Units with sufficient resources to meet budgeted obligations and commitments may also award in-range salary adjustments and/or outstanding service awards in addition to across-the-board or merit increases.

Across-the-Board Salary Increase Program

Unless a unit has received approval of their merit program by the Office of Human Resources prior to January 1, 2008, the unit shall use the across-the-board increase program. Under the across-the-board salary increase program, a recurring, across-the-board base pay increase of 3.25% will be awarded effective June 9, 2008. The across-the-board salary increase program applies to all eligible Civil Service employees within the individual department and/or entire unit.

Merit Salary Increase Program

Effective June 9, 2008, units who have chosen to participate in the merit salary increase program with an OHR approved merit increase program may award merit based pay changes. The cost of the unit's merit increase program must be at least 3.25% of the unit's Civil Service payroll (i.e., unit's total Civil Service payroll is determined by adding the salaries budgeted for vacant Civil Service positions, the salaries of Civil Service employees not eligible for a merit increase, and the salaries of currently employed Civil Service employees).

Units offering merit based pay increases in June 2008 must have met the following criteria:

• OHR approved performance management plan in use since September 30, 2007
• OHR approved merit plan approved by September 30, 2007
• Performance standards (performance/merit categories and guidelines of the performance management program) must be communicated to the employees by September 30, 2007
• Communication to the Director of Compensation of the intent to utilize merit by January 1, 2008
• Alignment with college or administrative unit performance management/merit program specifications
  

View FY10 information and deadlines for gaining approval for merit-based pay programs.

Discretionary Salary Adjustments

Units may offer in-range salary adjustments, one-time payments, and/or outstanding service awards. These may be granted at any time during the fiscal year, at the discretion of the department/unit. Each college, unit or coordinate campus, may determine the approval process and approval authority for discretionary pay increases. See U of MN policy In-Range Adjustments.

Units and their human resources managers are advised to work with their OHR Human Resources Consultant to develop and implement discretionary pay programs.

Outstanding Service Awards

Outstanding Service Awards in the form of one-time payments may be granted this year. Outstanding Service Awards may be made to employees without regard to where their salary falls in the salary range (Guidelines for Outstanding Service Award Programs). Consult your Human Resources Consultant in the design and implementation of Outstanding Service Award Programs.

Employees in "Rate Arranged" Classifications

Units must enter salary plan and grade assignments for employees in Rate Arranged Classifications into the PeopleSoft employee database.

Employees in Rate Arranged classifications are included in all Civil Service pay increase programs unless the unit works with its central HR Consultant to develop an alternative compensation system for its Rate Arranged employees.

Base pay will not be increased over an employee's pay range maximum.

Compensation Policy, Related Information

Premium Payments

View information on premium payments (e.g. shift differential, augmentations, on call).

Temporary and Casual Employees

Temporary and casual employees (i.e., classifications 0001/0007) are covered by the human resources policy on temporary and casual appointments. Temporary and casual appointments are normally not eligible for pay increases. Consult your human resources employment consultant for exceptions to this policy.

Performance Appraisal

The process of managing employee performance is critical to the success of employees, units, and the University. The Civil Service Rules (Rule 9 Performance Appraisal) require an annual written assessment of employee performance. It is important that performance criteria are communicated to employees prior to evaluating performance, so they are well informed when the unit's annual performance appraisal process takes place.

The Civil Service Rules (Rule 7 Probationary Period and Orientation) require at least one written performance appraisal for probationary employees.

The University-wide performance appraisal forms are located online.

In some cases, units may prefer to develop a performance appraisal management plan (including a process, appraisal forms, and training for supervisors) specific to their unit. Alternate performance appraisal plans must be developed in conjunction with the unit's HR Pro and their OHR human resources consultant and approved by the Office of Human Resources in consultation with the Civil Service Committee.

Each unit is requested to record the dates of all completed performance reviews in PeopleSoft.  The Administration will be utilizing this data to report to the Board of Regents regarding the units that have completed annual performance reviews.

Pay Plan Questions

Please direct questions about the Civil Service Pay Plan to your unit or Academic Health Center (AHC) HR professional (612-624-7957) or Office of Human Resources HR Consultant.

Related Policies and Information

• Outstanding Service Award Guidelines
• U of M In-Range Adjustment Policy
• Civil Service Rules
• Managers Toolkit
• Fiscal Year 2010 Merit Pay Program
• Premium Payments

HRMS PeopleSoft implementation dates and instructions will be available June 1, 2008. HRMS will send implementation instructions to HRMS ACES. Individuals can request copies of the HRMS instructions, after June 1, 2008, by contacting Bonnie Marten at 612-626-9665 or marte004@umn.edu.