UK Human Resources

Current Salary Allocation Guidelines

The Salary Allocation Guidelines help support the process of implementing salary increases for staff and faculty. The Salary Guidelines apply to faculty and staff of the University of Kentucky. The Guidelines do not apply to UK Healthcare employees, since UK Healthcare operates on a different financial and salary allocation cycle.

The Salary Allocation Guidelines are intended as a resource for UK Area Fiscal Officers and Budget Officers.

 

 

 

May 12, 2015

Dear Colleagues,

As part of the budget planning process, we are pleased to announce that President Capilouto has recommended a FY 2015-16 Salary Allocation Plan addressing important salary objectives. The Plan applies to all eligible faculty and staff at the University of Kentucky, excluding UK HealthCare employees (Personnel Area 1500) as UK HealthCare operates on a different salary raise cycle. Pending approval by the Board of Trustees, the FY 2015-16 Salary Allocation Plan will be implemented on July 1, 2015 and includes:

1. A merit pool for eligible faculty and staff of 3.5% with a minimum increase of 1% for all eligible staff employees.

2. A new starting rate for all UK regular and temporary employees (excluding students) of $10 per hour. Employees currently earning between $7.25 and $11.99 will receive an incremental increase to help alleviate compression, according to a defined formula.

3. Salary scales (pay grade ranges) will increase 1%.

The accompanying guidelines describe the process for awarding the merit pool and salary scales and starting rate related adjustments.

We greatly appreciate the outstanding work that faculty and staff do on behalf of the University of Kentucky.

Sincerely,

Timothy S. Tracy Eric N. Monday

Provost Executive Vice President for Finance and Administration

 

 

 

University of Kentucky

FY 2015-16 Salary Allocation Plan

Faculty

 A three and one-half percent (3.5%) salary pool is to be allocated among all eligible regular faculty to recognize meritorious performance.

 The salary pool for faculty may be augmented from other recurring funding sources.

 Any salary adjustment greater than seven percent (7%) for any individual faculty must be approved by the Provost.

 Salary increases (regardless of fund source) shall be awarded to faculty holding regular positions (Personnel subareas 0001-0005) and in good standing in accordance with these guidelines.

 Salary increases will be effective July 1, 2015.

 Do not inform faculty of individual salary increases until notified by the appropriate Area Fiscal Officer.

Eligibility

1. Faculty must hold a regular position as of January 31, 2015 and not be considered a UK HealthCare employee (Personnel Area = 1500).

2. Faculty must have satisfactory or better performance for calendar year 2014 as measured by the performance evaluation score or other indicator(s). Faculty hired after December 31, 2014 and on or before January 31, 2015 are eligible if their performance during this period is deemed satisfactory by the department or unit head.

3. Faculty with no documented performance score or indicator for calendar year 2014 are eligible if their performance is deemed satisfactory by the department or unit head.

4. Faculty that did not perform at least satisfactory for calendar year 2014 as measured by the performance evaluation score or other indicator(s) are not eligible for the merit increase.

5. Any former administrator, whose salary was not adjusted back to the faculty salary level upon leaving the administrative role, will not be eligible for the merit increase.

 

University of Kentucky

FY 2015-16 Salary Allocation Plan

Faculty

Special Considerations

1. A separate pool of funds will be provided for faculty promotions.

2. The salary pool shall not be used to support programming costs. The raise pool must be distributed to eligible faculty as salary increases through this process.

3. In such cases whereby funds for salary increases are not available from the current fund source, other funds must be identified. Lack of funding from a position’s original funding source cannot prevent the establishment of a full 3.5% salary pool. For example, a faculty member is appointed to an endowed chair or professorship so it is expected that the proportionate salary increase of his or her salary base will come from endowment spending distributions. In case of insufficient funding from the endowment, other fund sources must be identified such as accumulated spending distributions.

4. The faculty salary pool cannot be combined with the non-exempt and exempt staff salary pool.

5. The allocation of the merit salary pool is subject to review and approval by the Provost.

 

University of Kentucky

FY 2015-16 Salary Allocation Plan

Non-Exempt / Exempt Staff

(Excluding UK HealthCare)

 A three and one-half percent (3.5%) salary pool is to be allocated among all eligible non-exempt and exempt regular staff to recognize meritorious performance. Eligible staff are expected to receive a minimum of one percent (1%).

 The salary pool for staff may not be augmented with other funding sources.

 Any salary adjustment greater than seven percent (7%) for any individual staff member must be approved by the President, Provost or Executive Vice President for Finance and Administration (EVPFA), as applicable.

 The merit salary increase pool (regardless of fund source) shall be awarded to eligible staff holding regular positions (Personnel subareas 0001-0005) and in good standing in accordance with these guidelines.

 The current salary scales will increase as reflected in attachments I and II. All regular staff shall be paid at least at the revised minimum of the salary scales, as applicable. An additional pool of funds is to be used for salary scale adjustments. The salary scale adjustments are not to be funded from the 3.5% salary raise pool.

 Salary increases will be effective July 1, 2015.

 Do not inform employees of individual salary increases until notified by the appropriate Area Fiscal Officer.

Eligibility

1. Staff must hold a regular position as of January 31, 2015 and not be considered a UK HealthCare employee (Personnel Area = 1500).

2. Staff must have satisfactory or better performance for calendar year 2014 as measured by the performance evaluation (PE score greater than or equal to 2.0). Staff hired after December 31, 2014 and on or before January 31, 2015 are eligible for the merit increase if their performance during this period is deemed satisfactory by the department or unit head.

3. Staff with no documented performance evaluation score for calendar year 2014 are eligible if their performance is deemed satisfactory by the department or unit head.

4. Staff who did not perform at least satisfactorily for calendar year 2014, as measured by the performance evaluation (PE score less than 2.0), are not eligible for a merit increase from the 3.5% merit salary pool. However, these employees shall receive the minimum salary scale adjustment and/or adjustments due to the new University starting rate, if applicable. See below.

 

University of Kentucky

FY 2015-16 Salary Allocation Plan

Non-Exempt / Exempt Staff

(Excluding UK HealthCare)

Special Considerations

1. The salary raise pool, salary scale adjustment funds and funds related to the new starting rate adjustments shall not be used to support programming costs. These funds must be distributed to eligible staff through this process.

2. If an employee is already at or above the maximum point for their salary scale, his/her total salary increase shall not exceed 3.5% without accompanying justification to the President, Provost or the EVPFA, as applicable.

3. The salary scale adjustments shall be applied first. If applicable, the salary rate for any staff employee shall first be increased to the FY 2015-16 minimum salary scale. For eligible employees, the merit increase shall be based on the employee’s current 2014-15 salary, with the exception of those employees receiving salary adjustments due to the new starting hourly rate. The merit increase for these individuals shall be added to the revised minimum rate to calculate the eligible employee’s July 1, 2015 salary (see page 5 "New University Starting Rate Guidelines").

4. In such cases whereby funds for salary increases are not available from the current fund source, other funds must be identified. Lack of funding from a position’s original funding source cannot prevent the establishment of the salary pool, scale adjustments or new starting rate adjustments.

5. The exempt and non-exempt staff salary raise pools can be combined for allocation to all eligible staff. However, if the exempt and non-exempt salary raise pools are combined, careful consideration must be taken to not disadvantage either group of employees. The non-exempt and exempt staff salary raise pools cannot be combined with the faculty salary raise pool.

6. A merit increase may be provided to any staff member who transfers (demotion, promotion and lateral) between February 1, 2015 and June 30, 2015. The merit increase amount shall be calculated on the employee’s salary in effect on January 31, 2015 (the date of the salary snapshot).

7. The allocation of the FY 2015-16 merit salary raise pools is subject to review and approval by the President, Provost or EVPFA, as applicable.

 

University of Kentucky

FY 2015-16 New University Starting Rate

Non-Exempt Regular and Temporary Staff

New University Starting Rate Guidelines – To increase the competitiveness of the starting pay at the University, a new starting rate of $10 per hour will be implemented for all nonexempt regular and temporary staff. Additionally, in order to minimize pay compression, employees with wages currently below $12 per hour will also see a salary adjustment. These starting rate related adjustments will be implemented July 1, 2015 for non-exempt staff of the University main campus and related units. UK HealthCare will implement adjustments for non-exempt staff on October 1, 2015.

The guidelines below outline the process of determining the new pay rates for temporary and regular non-exempt staff; however, budget officers will receive pre-calculated rates from the University Budget Office to support this process.

Employee eligibility

- All non-exempt regular and temporary staff are eligible for adjustments related to the new University starting rate, regardless of hire date, full-time or part-time appointment, performance evaluation score, leave status, corrective action status, etc.

- Student employees (identified as "students" in SAP’s Employee Group category) are not eligible for adjustments related to the new starting rate for non-exempt employees.

- Adjustments are made in consideration of the employee’s base hourly pay rate (not, for example, by combining the employee’s base pay and a shift differential).

Employees earning less than $12 per hour

1. Employees with a current hourly rate of $7.25 will have their wage rate increased to $10.00 per hour, prior to consideration of the merit increase.

2. Employees with a current hourly rate above $7.25 and below $12.00 will have their wage rate adjusted using the following formula:

$12.00−Current Pay Rate
________________________    x $2.75
$12.00−$7.25

This formula provides employees an incremental wage adjustment based on their current level of pay relative to similarly situated employees. Special consideration: The University Budget Office will provide these calculated adjustments. However, should a Budget Officer determine that the adjustment may cause a significant issue (for example, the relative pay of the employee to his/her supervisor), additional adjustments may be possible by working with your Area Fiscal Officer who will collaborate with HR.

3. The merit increase for eligible non-exempt staff will be based on the adjusted rate (see step 2). The merit increase will be added to the adjusted rate to determine the eligible non-exempt staff member’s final pay rate for FY 2015-16.

Example: Non-exempt staff employee’s current rate is $8.80 per hour. Per the formula, the adjusted rate is $10.65. Assuming the employee is to receive a 3.5% merit increase, the merit increase is applied to the $10.65 adjusted rate resulting in a $0.37 per hour merit increase. The merit increase is added to the adjusted rate to determine the employee’s final pay rate for FY 2015-16 of $11.02 per hour. A chart of sample results follows.

Current FY 2014-15

Wage Rate

Adjusted Rate (Related to New

University Starting Rate) –

Limited to $12.00/hr

Merit Increase

(assumed 3.5%)

Final FY 2015-16

Wage Rate

$8.80/hr

$10.65/hr

$0.37/hr

$11.02/hr

$9.70/hr

$11.03/hr

$0.39/hr

$11.42/hr

$11.81/hr

$11.92/hr

$0.42/hr

$12.34/hr