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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:
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:
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.
(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
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.
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 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), http://www1.umn.edu/ohr/er/consultants/index.html.