1. 1 2010 Merit Program  Overview – General Information  Employee Eligibility  Merit Allocation Pools & Funding  Merit Awards, Process, Rules  Draft Timeline

2. 2 Overview – General Information  Merit is a salary adjustment to recognize an employee’s contributions in meeting established goals & objectives. Based on most recent performance evaluation  Template & instructions will be reviewed with area leads (as in past years).  Each division may have a different internal process as long as other ‘rules’ outlined in the policy are met.

3. 3 Employee Eligibility  Hired on or before February 28, 2010  Benefits eligible - appointment 50% or greater  Student titled positions are ineligible  Classified and Administrative & Professional (A&P) staff must have a current performance evaluation on file at Human Resources.  Faculty specific requirements established by the Provost.

4. 4 Merit Awards – One Time Payments  All awards will be paid as a lump sum in the December 2010 regular paycheck. Subject to normal withholding taxes  Due to concerns about the budget reduction in FY 2011 and permanent state revenue losses expected over the next biennium, funding is not currently available to commit to adjust base salaries.

5. 5 Merit Allocation Pools  A “blended” allocation pool will be based on: Annual salary rate of eligible employees as of May 1, 2010.  2.7% for Classified Employees  2.2% for A&P and Faculty No additional allocation for salary changes that occur after May 1, 2010.

6. 6 Merit Allocation Pools  Employees are separated by Faculty, Classified & A&P, then grouped by division, college or department.  Pool reallocations may be made by a division executive and or as necessary to regroup all managers that report to a particular VP, Dean or AVP: Faculty allocation must be used only for faculty positions. A&P allocation can be re-distributed to Classified, but not vice-versa. Overall pool amount by fund may not be exceeded. No exceptions. All fund groups have the pool amount calculated the same.

7. 7 Merit Award Process / Rules  HR will provide general award guidelines Methods must be approved by HR prior to submission of templates to Budget Office.  No min or max % is specified but the total allocation to each area may not be exceeded or supplemented with departmental funds..

8. 8 Merit Award Process / Rules  Payout is contingent on continuous employment of at least 6 months prior to effective date (5/31 for 12/1 payout) Terminated/separated employees will not be entitled to the one time merit payment if they are not on the payroll when the one time payments are processed  Internal employee job changes are not impacted. The one-time merit award follows the employee.

9. 9 May – JulyMerit Policy approved & communicated; Area Leads identified August 12Board of Regents approves UTSA budget & merit program August 30Information Sessions with Area Leads; Templates sent to Area Leads August 31 Area Leads distribute templates, each division determines/communicates internal process Sept 15Templates due back to Area Leads for review Sept 20Templates due to Budget Office (Excel files) October Budget allocates one time funding; Departments begin entry of awards into HRMS Oct / NovOther Internal processing by central offices DecemberEmployee receives one time merit in paycheck MERIT PROCESS TIMELINE 2010 - Draft

10. 10 Source of Funds for Merit Education & General (E&G) Accounts (14-xxxx-xx) are funded from central budgeted sources. Non-E&G funded positions that receive merit are covered from the fund source of the appointment on the date merit is paid. Grants & Contracts (26-accounts) will be awarded merit pay if the grant or contract allows such to be funded. Exceptions must be approved in advance by VPBA.

11. 11 Budget for Non-E&G Merit  Given variable rates, actual net cost impact will vary by budget group based on position types. For example: Fee account ABC has 3 positions:  2.0 FTE Classified earning $35,000 x 2 = $70,000 * 2.7% = $1,890  1.0 FTE A&P earning $60,000 * 2.2% = $1,320 Total Merit Budget = $3,210 / $130,000 = 2.5% (not 2.3%) Review your FY 11 budget & estimated carryforward to assure you will have sufficient one-time money to cover merit.

12. 12 Budget: Non-E&G Benefit Rate Increases  Medical – group health insurance will go up ~12%  UCI rate will increase ~57%. The rate is applied to maximum of $9,000 salary per employee  TRS Retirement contribution rates will increase slightly ~1%

13. 13 Budget for Non-E&G Benefit Increases  Net impact to benefit rates (as a percentage of total salary costs) will vary between 4 - 8% (includes annualized one time merit) High salary rates per FTE, lower the net overall percentage increase Low salary rates per FTE, higher the net overall percentage increase  FY11 benefits calculator will be posted to the web Recalculate your estimated benefits costs Add one time merit payment to annual salary costs