Classified Exemption Review Project March 2012

AGENDA  WHY? Recent Legislation Absence of Salary Increases for Classified Increases in Benefit Premiums Requests from Classified Employees

WHAT HAPPENED?  Passage of SB (Higher Education Efficiency Bill) Further defined eligibility criteria for exemption of functions from the Classified System Prohibits exemption of an encumbered Classified position

WHAT HAPPENED? (Continued)  Classified Salary Increases No salary increases for past 4 years including 2012 No flexibility for a higher education institution to provide salary increase outside of Classified System Reward and recognition avenues limited o ECO Pass o Gift Card

WHAT HAPPENED? (Continued)  Benefit Premium Increases  Benefit Plan Design and Offerings No ability to offset premium increases for Classified Employees No flexibility on plan design or vendors

WHAT NEXT?  Some University’s aggressively approached exemptions  MSU Denver chose to take a more “laid back” approach Reviewed Statute Discussed with other University’s Discussed with Classified Executive Council Discussed with President’s Cabinet

WHY NOW? Started receiving requests from Classified Employees to see if they could go exempt Increased activity by peer institutions in Colorado in exempting positions

WHERE ARE WE AT?  Hired two HR Consultants to assist with review of existing Classified positions at the University to see which, if any, could be exempt  Researched SPB Rules, regulations in comparison with MSU Denver Handbook for Professional Personnel  Meet with Classified Council to discuss process for exemption requests

What in the exemption statute (CRS ) regarding professional positions changed as of August 11, 2011?  The revised statute further defined the eligibility criteria to exempt professional staff positions from the state personnel system. This provides greater flexibility for individual higher education institutions to identify those functions that they deem meet the criteria.

What is the definition of “professional” pursuant to the statute? Functions are considered “professional” if they involve “the exercise of discretion, analytical skill, judgment, personal accountability and responsibility for creating, developing, integrating, applying, or sharing an organized body of knowledge that characteristically is:

A.Acquired through education or training that meets the requirements of a bachelor’s or higher degree, or equivalent specialized experience; and B.Continuously studied to explore, extend, and use additional discoveries, interpretations, and applications and to improve data, materials, equipment, applications, and methods.

 Basically, positions that provide leadership, management, program development and oversight, or support services for faculty, administrators, and students.

How can I find out if the job function I’m performing is eligible for exemption pursuant to the professional definition?  Complete the Request For Review of Duties for Possible Exemption form and submit it to HR  HR will notify you of the outcome after review

What does it mean to be exempt from the state personnel system?  Based upon functions described in statute, certain positions are exempted from the rules, procedures and regulations that govern the classified system. Specifically, Administrative positions are not governed by the Colorado State Personnel Board Rules or the Personnel Director’s Administrative Procedures.  They are, however, subject to all other applicable federal and state law and regulations, as well as laws and policies set forth by MSU Denver.

Will I be eligible for overtime if I accept an Administrative position?  Like before, it depends on the unique functions in the assignment. HR is responsible for reviewing each individual assignment for overtime eligibility under the Fair Labor Standards Act (FLSA).  It should not be assumed that all Administrative positions would be exempt from overtime.

Do I have to change from a classified to an Administrative position if my assigned functions are professional or funded out of the general fund?  NO. Absolutely not. Current classified employees are not required to move to Administrative status even if their assigned functions meet the exemption criteria as set forth in statute.  Additionally, retaliation of employees for exercising their right to choose, will NOT be tolerated.

Will I get a salary increase if I transfer from Classified to Administrative?  The implementation of this project is intended to be cost neutral; however, if an employee is reassigned to a position with a minimum hiring range higher than the employee’s current salary rate, s/he will be moved to the minimum of the new range.  If the employee’s current pay rate is within the range of the new position, there will not be a salary increase.

Can I stay in PERA? Do I have to stay in PERA?  Employees currently in PERA may stay in PERA. When an employee decides to transfer to Administrator, there is a one-time opportunity to leave PERA and enroll in one of the Defined Contribution Pension Plans.  You are encouraged to contact PERA regarding PERA benefits and membership.

OTHER CONSIDERATIONS  Kaiser is not available to administrators  ECO Pass still available BUT employee pays monthly $25 fee  Tuition Scholarships and Professional Development remains the same

THE FUTURE?  Potential increase in Classified Benefit premiums may occur based on Legislative funding  Current Bills before the Legislature Rule of Three recommended to go to Six (6) Use of panel/search committees instead of testing Temporary Appointments from 6 months to 9 months Limitations on Bumping Rights to those within 5 years of full retirement eligibility