University of Minnesota
Office of Human Resources
http://www.umn.edu/ohr
612-625-2016

FY'14 Compensation Plan for Faculty, P&A, and Civil Service

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 and Kathryn F. Brown, Vice President for Human Resources

Subject: FY'14 Compensation Plan

Date: March 1, 2013


This memo provides the fiscal year 2013-14 (FY’14) compensation plan that the President is recommending to the Board of Regents as part of the overall University budget. The FY’14 budget recommendation will be reviewed by the Board of Regents at its June, 2013 meeting. Please use the parameters and information 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:
  • Faculty in the 94xx series, (excluding UMD and UMC faculty represented by UEA)
  • Academic Professional and Administrative (97xx, 96xx, 93xx series)
  • Civil Service
  • Graduate Assistants and Undergraduate Research and Teaching Assistants
FY’14 Compensation Plan
General Parameters for the Pay Plan 
  • The overall increase to base salaries in your unit should be no less than 2.5 percent (of total base salaries). This amount should be distributed to employees in accordance with your unit’s written compensation plan.
  • Chancellors, vice presidents, and deans may exceed a 2.5 percent increase only if there is a need to address documented market challenges or exceptional performance results, and their budgets permit it. Proposed increases above the general percent increase may be distributed as recurring base adjustments, non-recurring adjustments, or a combination of both.
  • 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 and Civil Service Rules.
  • Your unit’s procedures for determining salary increases must take into consideration internal and external market equity, and must be done in a non-discriminatory manner.
  • Merit review processes should be completed by the end of the fiscal year and salary increases should be reflected in the new base pay rates for FY’14.
  • Units that currently provide annual across-the-board increases to civil service employees are required to develop a plan and process to award merit increases to civil service employees. This process must be developed and communicated to employees by the beginning of the fiscal 2014-2015 (FY’15).
  • University policy requires annual written performance evaluations for all employees. Each unit is required to record the dates of all completed performance reviews in PeopleSoft.
  • For Faculty, Professional & Administrative and Civil Service employees, salary floors and pay range minimums and maximums will be increased by 2% effective June 2013.
Promotional Salary Increases
In addition to annual increases some individuals may receive promotional increases during the FY’14 fiscal year. Guidelines for these promotions are provided below.

For faculty:
Base salary increases for faculty receiving promotions or tenure may not be less than the amounts shown below
  • Assistant professor without tenure to associate professor with tenure - $3,080
  • Assistant professor with tenure to associate professor with tenure - $3,080
  • Associate professor without tenure to associate professor with tenure - $3,080
  • Associate professor without tenure to professor with tenure - $3,890
  • Associate professor with tenure to professor with tenure - $3,890

Promotions for non-regular faculty (e.g. appointment types A, U, I, K, J):
Promotional increases are awarded at the unit’s discretion. Increases must be consistent with your unit’s past practices, and may not exceed the increases provided to regular faculty, and must be implemented in a non-discriminatory manner.

For P&A staff:
Base salary increases for those receiving promotions and/or continuous appointments may not be less than the amounts shown below:
  • The standard increase to base salary for continuous appointment is $3,080. If a staff member receives both a promotion and continuous appointment, the total increase still may not exceed $3,080.
  • The standard increase to base salary is $2,110 for approved promotions (e.g., from associate librarian to librarian).
For Civil Service staff:
Base salary increases for those receiving promotions as defined in civil service rules may not be less than 4% of base pay.

Pay Plan Approval
A written compensation plan is required from your unit. This plan should be submitted to Kathryn Brown by May 31, 2013.

A one-page written compensation plan should include the following components:
  • A description of any extraordinary market competition or exceptional performance that requires overall increases in excess of the 2.5% pool. This will need to be accompanied by documentation of completed performance reviews for all employees.
  • Rationale for any individual increase over 5%, including data driven documentation of market compensation.
  • A description of your plans (including timeframe) to deliver merit pay to all civil service employees. Refer to the OHR Merit Web Page for implementation requirements and resources to assist you in this process.
  • Exceptional circumstances: There may be 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 unit faculty and P&A staff (see Faculty Compensation Policy and Compensation for Academic Professional and Administrative Employees Policy), the leadership may propose an alternative, based on a demonstrated compelling need, to the parameters presented above for their faculty and P&A employees. The alternative plan and supporting documentation regarding the compelling need should be detailed in the written compensation plan. Note: An alternative plan may not be applied to civil service employees.
Questions: Please direct questions about your FY’14 Compensation Plan to your human resources consultant (http://www1.umn.edu/ohr/er/consultants/index.html).

KH/KFB