University of Minnesota
Office of Human Resources

FY'13 Compensation Plan for Faculty, P&A, and Civil Service

March 28, 2012

To: Chancellors, Senior Vice Presidents, Vice Presidents, Vice Provosts, and Twin Cities Campus Deans

From: Karen Hanson, Senior Vice President for Academic Affairs and Provost; Robert J. Jones, Senior Vice President for Academic Administration, University of Minnesota System; Kathryn F. Brown, Vice President for Human Resources

Subject: FY'13 Compensation Plan

This memo provides the fiscal year 2012-13 (FY’13) compensation plan that the President is recommending to the Board of Regents as part of the overall University budget. The FY’13 budget recommendation will be reviewed by the Board of Regents at its May 10-11, 2012 meeting, and considered for approval by the Board of Regents at its June 7-8, 2012 meeting. Please use the principles outlined in this memo to guide your unit in preparing this year’s budget and compensation plan.

Employees affected by the information in this memo include:

Parameters for FY’13 Compensation Plan

  • The overall average base salary increase for your unit’s employees should be no less than 2.5 percent.
  • All faculty and P&A employees must receive a $500 increase to their base. The remainder of the 2.5% for those employee groups should be delivered based on merit and market competitiveness.
  • Chancellors, vice presidents, and deans may exceed a 2.5 percent increase to their salary pool for faculty and P&A staff only if there is a need to address documented market 2 challenges and their budgets permit it. Proposed increases above the general 2.5 percent increase may be distributed as recurring base adjustments, non-recurring adjustments, or a combination of both.
  • A dean, vice president, provost, or chancellor may hold a portion of salary-increase funds for distribution later in the fiscal year. Such funds must be distributed no later than October 31, and they must be budgeted for current faculty and P&A staff salaries.
  • Your unit’s procedures for determining salary increases must comply with the University’s Faculty Compensation Policy and the Academic Professional and Administrative Staff Compensation Policy.
  • Your unit’s merit review process should be timely and increases should be reflected in the new base pay rates for FY’13.
  • University policy requires annual written performance evaluations for all academic employees. Each unit is requested to record the dates of all completed performance reviews in PeopleSoft. The Office of Human Resources will be utilizing this data to report to the Board of Regents regarding the units that have completed annual performance reviews.
  • Civil Service employees must receive a $500 increase to their base. The remainder of the 2.5% for civil service employees will be distributed based on merit if a merit pay plan is in place which has been approved by the Office of Human Resources, or will be distributed as an across the board increase if a merit plan is not in place. Please communicate to the Office of Human Resources (OHR) Compensation Department if you plan to use a merit plan.
  • For Faculty, Professional & Administrative and Civil Service employees, salary floors and pay range minimums and maximums will be increased by 2%, effective June 18, 2012.
  • Outstanding service awards for any employee may be granted in the form of one-time payments.

Your Compensation Plan

You must provide a one-page compensation plan to your appointing authority if your plan includes a general increase over 2.5% or an increase to an individual over 5%. Your compensation plan should include the following components:

  • A description of any extraordinary market competition that requires overall increases in excess of the average.
  • Rationale for any individual raise over 5%, including data driven documentation of market compensation.

Exceptional circumstances. There may be campuses, colleges or administrative support units that cannot meet the expectations of delivering a recurring 2.5% pool due to significant financial stress or differentiated financial capacities. In these cases and following consultation with their faculty and P&A staff (see “Faculty Compensation Policy” and “Compensation for Academic Professional and Administrative Employees Policy”), the leadership of a unit may propose an alternative, based on a demonstrated compelling need, to the parameters presented above for their academic employees. The appointing authority for the leadership of the unit must approve the alternative plan prior to the implementation. Note: This type of plan may not be applied to civil service employees.

Promotional Salary Increases

(Note: These amounts are increased annually to reflect inflation using the Higher Education Price Index and are provided in addition to any annual increase.)


Base salary increases for those receiving promotions or tenure may not be less than the amounts shown below:

Base salary additions for promotions or tenure for regular faculty

  • Assistant professor without tenure to associate professor with tenure - $2850
  • Assistant professor with tenure to associate professor with tenure - $2850
  • Associate professor without tenure to associate professor with tenure - $2850
  • Associate professor without tenure to professor with tenure - $3600
  • Associate professor with tenure to professor with tenure - $3600

Promotions for non-regular faculty (for example, appointment types A, U, I, K, J)
Promotional increases are awarded at the unit’s discretion. Increases must accord with your unit’s past practices, but may not exceed the increases regular faculty receive.

P&A Staff

Base salary increases for those receiving promotions or continuous appointments may not be less than the amounts shown below:

    Base salary additions for continuous appointments awarded P&A employees
    The standard increase is $2850. If a promotion accompanies the continuous appointment, the total increase still may not exceed $2850.

    Base salary additions for promotions for P&A employees
    The standard award is $1950 for approved promotions (for example, from “associate librarian" to "librarian").

Retention Offers

Retention offers require the approval of the appropriate chancellor, senior vice president, or the president. Additionally, if the offer includes a salary increase, the University’s Office of Human 4 Resources (OHR) must also be notified. Your unit must fund its retention offers; no additional central funds are available for this purpose.


Salary floors for academic employees for FY’13 have been increased. Note that these floors are most particularly relevant to newly hired academic employees.


Please direct questions about your FY’13 Compensation Plan to your human resource lead or to the Office of Human Resources (OHR),