Report to Faculty Senate on pay plan uses in the second year of the biennium addressing both the Chancellor’s discretionary 10% and the Merit/Solid Performance Split.

 

Submitted by

The Promotion, Tenure and Salary Committee

April 24, 2008

 

CHARGE: Make recommendations about pay plan uses in the second year of the biennium.  Address both the Chancellor’s discretionary 10% and the merit/solid performance split.

 

Right now the pay plan is 3% for Fy09.  However, what is confusing is that due to the shortfall in state revenues, the annual pay plan is split, with 2% coming on July 1, 2008 and 1% coming on April 12, 2009. 

Any pay plan at UW-L will be distributed not less than 1/3 Merit/Market, not less than 1/3 Solid Performance and the last 1/3 can be used for Merit/Market, Solid Performance or other compensation needs. It has been the practice for UW-L to distribute the pay plan 2/3 for Solid Performance and 1/3 for Merit/Market. The Chancellor can use up to 10% of the pay plan to address compression and/or other compensation needs.  The problem is that with such historically minimal increases, any % the Chancellor would elect to take off the top of the pay plan would essentially be "robbing Peter to pay Paul".  The committee felt that in such difficult financial times one would be hard-pressed to make an argument to implement the use of any of the Chancellor’s Discretionary 10%.

 

RECOMMENDATION:

 

Until pay increases equal or exceed the cost of living increases or some similar measure, the money we’re talking about is a relatively small amount and the Chancellor should not exercise his/her option to use the Discretionary 10%.  The pay plan should continue to be used for Merit/Market and Solid Performance - a departmental decision.