Iowa State University
Professional and Scientific Council
Regular Session
Council Meeting Minutes
Wednesday, April 2, 2003
Pioneer Room, Memorial Union
2002-2003
President: Rex Heer
Vice-President: Kevin Kane
Secretary/Treasurer: Cathy Good
Call to Order and Seating of Substitutes
The meeting was called to order at 2:10 p.m.
X
X
X
X
X
X
A
X
S
X
X
X
S
Bahr, Deb
Becker, Tom
Brink, Marcia
Brinkmeyer, Linda
Brotherson, Dave
Brueland, Brent
Cooney, Sarah
Doty, Ann
Eggers, Tim
Good, Cathy
Heer, Rex
Jensen, James
Joiner, Stacy
X
X
X
X
X
X
X
X
X
X
X
X
X
Kane, Kevin
Kapke, Paul
Marks, Del
Mayer, Marie
McCool, Kelly
McCroskey, Barry
McManus, Barb
Mumm, Lynne
Nelson, Mark
Patton, James
Peters, Beverly
Peterson, Teresa
Riedemann, Trevor
S
X
S
X
X
A
X
X
Roberts, Kurt
Sorensen, Jeffrey
Strah, Pat
Strand, Judy
Van Beek, Brenda
VanGinkel, Margaret
Wood, Douglas
Woodin, Dan
X = Present
A = Absent
S = Substitute
Guests were Anne Krapfl, news writer from University Relations (Inside Iowa State); Evie Myers, associate
director, Equal Opportunity and Diversity (attending for Carla Espinoza); and Max Wortman, president of Faculty
Senate. Substitutes: Robert Mills, communication specialist, Institute for Physical Research and Technology, for
Stacy Joiner; Mary Ottmar, County Extension Education Director, for Tim Eggers; Norm Hill, Stores and Materials
Manager, Central Stores, for Pat Strah; Jessica Rohrig, Program Assistant, Educational Talent Search, for Kurt
Roberts.
Following general introductions, all substitutes were given full voting rights and privileges.
Establish a Quorum
A quorum was present.
Presentation of Committee Motions
All motions are listed on the agenda
Approval of the Agenda
The agenda was approved after striking the Motion on the Future of the ISU Cemetery, which was approved last
month.
Approval of the Previous Meeting’s Minutes
The minutes of the March 6, 2003, Council meeting were approved with the following correction: The motion from
the Compensation & Benefits Committee on Accessibility of P&S Classification Information was listed as amended
under New Business. Corrected minutes have been forwarded for posting on the Council web page.
Human Resources Report
No report. However, in response to a question regarding the status of the position for the manager of employee
relations; Evie Myers commented that the committee is currently reviewing resumes.
Provost’s Office Report
No report.
Council President’s Report
Rex reported:
 At last month’s open forum, Max Wortman had a couple factual errors in what he said. We have since come up
with the correct figures. There are more P&S positions than faculty positions, but there are a lot less P&S
positions than faculty on state (hard) money.
 In response to questions and comments on the impact of budget cuts, submit issues to Lynne to formulate an
item for the campus leaders breakfast. Max Wortman suggested developing a couple letters for individuals to
send to state legislators.
 Rex was contacted by a P&S staff individual regarding the overlap of salaries in the upper-level merit and
lower-level P&S employees. This person was asking if there was any way to identify funding sources to give
P&S a larger-than-usual increase to help rectify this and for morale purposes. Rex has discussed this with
President Geoffroy, who is aware of these types of situations. The Compensation & Benefits Committee has
been working on this issue and is in the process of putting together a report. Max commented that Faculty
Senate is working on a report on salary compression in faculty salaries (a similar type issue) and suggested we
visit with Mark Chidister if we need data.
 At President’s Council last Friday, we heard a report from Dennis Peterson in the International Education
Services office. This is another area where they have to do a lot more recordkeeping with international students
and no additional resources to do so.
 Thanks to everyone who participated in the get-together at Reiman Gardens and for those who helped with the
Professional Development Day. He has heard nothing but good comments on both these events.
Council Secretary/Treasurer’s Report
Cathy Good reported the following balances:
General Fund: $1,734.95 Campus Organization: $136.23
Professional Development: $845.03
Council Officer Reports
Lynne – Campus Leaders Breakfast: General discussion included the status of the Arrival of Children Policy, which
is on the docket for the May Board of Regents meeting, prospects for the FY04 budget, the Faculty Senate motion
regarding United Way, and a forthcoming letter from President Geoffroy addressing the need for tolerance and
civility during this time of war with Iraq. As a result of suggestions at breakfast, the letter, planned for email
distribution to faculty and staff, also went to students. Other topics addressed include planned movement through
the pay matrix, encouraging service on Council, and communication to all members of units undergoing
reorganization.
Next breakfast is on Thursday, April 17. Please send any comments and questions to Lynne by the preceeding
Friday.
COMMITTEE REPORTS
Compensation and Benefits
Trevor – We have four pending motions that will be discussed under new and old business. I have a couple
comments on the subcommittee report, the essence of the reports findings are: 1) the sample used in the salary
reports is non-representative, 2) they use a simple average for generating their composite ratio, 3) there is no
mechanism in place to move toward the mid-point (the status of average), and 4) there are other organizational
issues with the way the report is set up. Combined, Items 1 and 2 skew the overall market ratio by giving undue
weight to single-incumbent or low-incumbent classifications.
Policies and Procedures
Dan – We looked through the 10 items left to do. They have made a recommendation to Executive Committee and
will finalize what they can accomplish this year and what will carry forward to next year. They plan to take another
recommendation to Executive Committee regarding committee structure. Any change there would require a bylaw
change.
Representation and Awards
Del – (elections): We had 407 voters (18%) in this election. Five incumbent members of council were reelected to
another term: Debbie Bahr and Cathy Good, Academic and Research; Barbara McManus, External Affairs; Beverly
2
Peters, Extension; and Ann Doty, Business and Finance. We also have five new council members: Mary Darrow,
David Popelka, and Bonnie Whalen, Academic and Research; Yanira Pacheco, Student Affairs; and Steve Karsjen,
IPRT/Ames Lab.
Judy (awards) – they have forwarded the last batch of award nominations to the Provost and have another set due by
mid-April. P&S ExCyllence Award – they hope to have this in place by late summer or early fall. They have
awards from Reiman Gardens and the Trademarks office and have support from President Geoffroy. They are also
working on a “random acts of kindness” type award.
Bev – next month is officer elections. We have a beginning slate of candidates of president, Kevin Kane; vice
president, Lynne Mumm; secretary/treasurer, Brenda Van Beek; At-large, Dan Woodin, Pat Strah, and Trevor
Riedemann.
Communications
Marcia – The May forum will be presentations by the P&S Council Recruitment & Retention Award recipients. The
President and Provost have been invited. Each award recipient can submit names of special invitees (e.g., their
department chair, etc.).
Reminder: when you get an email via the email tree, please forward it promptly to your list. They plan to have a
new system in place by summer where these will automatically go to all P&S staff.
They are working with Rex on a P&S fact sheet, and are working on guidelines to be taken forward for the
committee for next year.
Retention and Recruitment
Kelly – no report. Plan to attend the open forum next month!
Peer Advisory
Brenda – one contact this month.
Old Business
Compensation & Benefits motions:
Motion 2002-03.08 “Concurrence with Compensation & Benefits Committee Subcommittee Report &
Implementation Schedule”. Friendly amendments were suggested. Motion as amended:
Whereas: The P&S Council concurs with the analysis, conclusions and recommendations set forth in sections
4, 5, and 7, of the Compensation and Benefits Committee subcommittee report: Review of the Iowa State
University “Annual Report on Professional and Scientific Salaries”: History of changes and evaluation of its
effectiveness as an aggregate and individual analysis tool.
It is moved: The P&S Council will forward the aforementioned subcommittee report to the following Offices:
President, Provost, Vice President for Business and Finance, and Assistant Vice President for Human Resource
Services; the Council recommends the following implementation schedule for changes to the “Annual Report
on Professional and Scientific Salaries”:
Fiscal Year 2003:
5.0 Recommendation for the Annual Report: Provide adequate resources
5.1 Statistical Methods:
5.1.2 Statistically appropriate market composite ratio
5.1.4 Midpoint operationally defined
5.1.5 Accounting for midpoint suppression
5.2 Report Organization:
5.2.1 Updates to Appendix A
5.2.1.1 Table organization by grade then alphabetically
5.2.1.3 Addition of high and low salary columns
5.2.1.6 Reintroduction of an incumbent numbers column
5.2.2 Updates to Appendix C
5.2.2.3 Addition of high and low salary columns
3
5.2.3 Updates to the Market Analysis
5.2.4 Definitions
Fiscal Year 2004:
5.1 Statistical Methods:
5.1.1 Statistically sound sampling procedure
5.1.3 Incorporation of reliability measure
5.2 Report Organization:
5.2.1 Updates to Appendix A
5.2.1.2 Grade-specific market ratio
5.2.1.4 Sample distribution charts
5.2.1.5 Salary survey source citations
5.2.1.7 Inclusion of Affirmative Action category trending
5.2.2 Updates to Appendix C
5.2.2.1 Grade-specific salary distribution charts
5.2.2.2 Multi-axis, grade-specific, salary distribution charts
5.3 Other Recommendations: educational demographics
Fiscal Year 2005:
5.0 Recommendation for the Annual Report: Complete review of P&S System
The Council requests a response from the Office of Provost, Vice President for Business and Finance, or
Assistant Vice President for Human Resource Services concerning this motion no later than one month
following passage of this motion. The chair of P&S Council’s Compensation and Benefits Committee will
liaison with administration should questions arise.
Following brief discussion, motion carries.
Motion 2002-03.09 “Concurrence with Compensation & Benefits Committee Subcommittee Report’s Policy
Recommendations”. Friendly amendments were suggested.
Motion as amended:
Whereas: The P&S Council concurs with the policy recommendations concerning the set forth section 6.0 of
the Compensation and Benefits Committee subcommittee report: Review of the Iowa State University “Annual
Report on Professional and Scientific Salaries”: History of changes and evaluation of its effectiveness as an
aggregate and individual analysis tool.
It is moved: The P&S Council will forward the aforementioned subcommittee report to the following offices:
President, Provost, Vice President for Business and Finance, and Assistant Vice President for Human Resource
Services. Furthermore, the P&S Council shall begin immediate discussions with these offices concerning:
1) Clearly defining expectations for penetration into the P&S Pay Matrix (i.e., salary growth within a pay
grade).
2) Developing a policy per the defined expectations for penetration into the P&S Pay Matrix.
3) Allowing managers discretion to offer salaries for new-hires up to the midpoint value.
The P&S Council charges the P&S Council President, with the assistance of the P&S Compensation and
Benefits Committee, with the organization of said discussions, and shall provided a progress report at the next
P&S Council meeting.
Following brief discussion, motion carries.
New Business
Compensation and Benefits Committee motions:
Motion 2002-03.10 “Support for Extension Mileage Reimbursement Increase Request”
Whereas: Stan Johnson, Vice Provost for Extension, requested the mileage reimbursement rate of
4
31 cents per mile be increased and tied to the IRS limit in a memo to Warren Madden, Vice President for
Business and Finance, dated March 12, 2003.
It is moved: The P&S Council supports the Extension request to tie the Iowa State University mileage
reimbursement rate to the Internal Revenue mileage reimbursement rate.
Following brief discussion, Motion carries as presented.
Motion 2002-03.11 “Recommendations for the FY04 P&S Pay Matrix”
See attachment to the minutes.
Following discussion, Motion carries as presented.
For the Good of the Order:
Max commented on the Faculty Senate motion regarding the United Way (which was subsequently rejected by
President Geoffroy). The discussion at the last Faculty Senate meeting was half by the United Way and half by a
gay/lesbian group. The Faculty Senate now has a task force working on this issue. Trevor has heard comments on
use of university resources for a charitable organization.
Next Council meeting will be Thursday, May 1, in the Gallery.
Adjournment:
The meeting was adjourned at 4:00 p.m.
Respectfully submitted by
Cathy Good
P&S Council Secretary/Treasurer
5
Professional & Scientific Council
Compensation and Benefits Committee
Committee Motion: Recommendations for the FY04 P&S Pay Matrix
Submitted to the C&B Committee for comment: March 6, 2003
Submitted to the Executive Committee for comment: March 17, 2003
Submitted to the C&B Committee for revisions: March 21, 2003
Submitted to the C&B Committee: April 2, 2003
Submitted to the P&S Council: April 2, 2003
Summary: The enclosed motion supports leveling horizontal and vertical inflationary inequities in the P&S Pay
Matrix via a time-phased adjustment to the P&S Pay Matrix and employee salaries. Further, the motion calls for
inclusion of inflationary metrics in the Department of Human Resource Services’ Annual Report on Professional
and Scientific Salaries.
Page
Contents:
Motion Rationale
Table 1, Gross and Inflation Adjusted Changes to P&S Pay Matrix from FY1994 to FY2003
Table 2, Gross and Inflation Adjusted Changes to the Merit Pay Schedule from FY1994 to
FY2003
Proposed Actions
Pay Matrix Adjustment
Example Inflationary Adjustment
Table 3, Proposed Changes for P&S Salaries and Pay Matrix for FY2004
Table 4, Aggregate salary increase for FY2004
Table 5, Proposed FY2004 P&S Pay Matrix
Reporting Inflationary Metrics
Appendix
Respectfully submitted by the Compensation & Benefits Committee
Recommendations for the FY04 P&S Pay Matrix
Page 1 of 6, Revision 5, March 26, 2003
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2
2
3
3
3
3
4
4
4
5
Motion Rationale
As seen in Table 1 below, Midwest Regional Consumer Price Index (CPI)† data from the US Department of Labor,
Bureau of Labor Statistics, indicates that salary ranges for grades P14 and lower have not kept pace with
inflationary pressures. Meanwhile, salary ranges for higher grades have matched or surpassed inflation. This trend is
also shown in the appendix, Chart 1.
Table 1, Gross and Inflation Adjusted Changes to P&S Pay Matrix from FY1994 to FY20031
Grade
% Change in
% Change in
CPI Adjusted % Change
CPI Adjusted % Change
Grade Minimum from
Grade Maximum from
in Grade Minimum from
in Grade Maximum from
FY94 to FY03
FY94 to FY03
FY94 to FY03
FY94 to FY03
P11
21%
21%
-3.0%
-3.2%
P12
21%
21%
-2.9%
-2.8%
P13
22%
23%
-1.8%
-1.2%
P14
23%
24%
-0.7%
0.3%
P15
25%
26%
0.5%
1.9%
P16
27%
29%
2.9%
4.7%
P17
28%
30%
4.1%
6.2%
P18
30%
33%
6.4%
9.0%
P19
33%
36%
8.8%
11.7%
P20
36%
N/A
12.4%
N/A
Average:
27%
27%
2.7%
3.0%
Midwest CPI for FY 1994
141.8
The above data is displayed in the Appendix, Chart 1.
Midwest CPI for FY 2003 (to date)
175.9
Percent Change
24.0%
CPI data is displayed in the Apendix Charts 2 & 3.
1
CPI Data from US Dept. of Labor Bureau of Labor Statistics (www.bls.gov)
Much of the disparity in growth is due to non-uniform changes made to the P&S Pay Matrix in FY1999, where the
lowest grade(s) moved 2% and the top grade(s) moved 15%, as shown in the Appendix Charts 2 & 3. Still, P&S
Pay Matrix growth for the 1995, 1996, 1997, 2000 and 2001 fiscal years lagged behind inflation, with respect to
grade minimums. Grade maximum followed suit with the exception of FY2000. In contrast, as seen in Table 2,
over the same period Merit grade endpoints have out-paced inflationary pressures average of 15 and 20 percent,
respectively. Only P&S pay grades P19 and P20 have shown double-digit growth over the same time frame.
Table 2, Gross and Inflation Adjusted Changes to the Merit Pay Schedule2 from FY1994 to FY2003
Grade
% Change in Grade
% Change in
CPI Adjusted % Change
CPI Adjusted % Change
Minimum
Grade Maximum from
in Grade Minimum from
in Grade Maximum from
FY94 to FY03
FY94 to FY03
FY94 to FY03
FY94 to FY03
1
35%
43%
11%
19%
2
35%
43%
10%
19%
3
52%
58%
28%
34%
4
49%
55%
25%
31%
5
45%
51%
21%
26%
6
44%
47%
20%
23%
7
40%
43%
16%
19%
8
40%
42%
15%
18%
9
36%
42%
12%
18%
10
36%
43%
12%
19%
11
36%
42%
12%
18%
12
36%
41%
11%
17%
13
35%
41%
11%
16%
14
35%
42%
10%
18%
15
37%
42%
13%
18%
16
38%
41%
14%
17%
17
37%
40%
13%
16%
18
37%
39%
13%
15%
Average:
39%
44%
15%
20%
2
Comparison based on Non-organized Merit Pay Matrix for the FY1994 and FY2003 Regent Merit System Pay Plan.
Recommendations for the FY04 P&S Pay Matrix
Page 2 of 6, Revision 5, March 26, 2003
Proposed Actions
Pay Matrix Adjustment
The P&S Council recommends that the inflationary inequities that have evolved in the last 10 years be eliminated
horizontally and vertically across the P&S Pay Matrix.
Acknowledging the possibility of insufficient funding to eliminate the inflationary inequities via a singular matrix
and salary adjustments, and to enable motion on all pay grade extremes, the P&S Council recommends that
University administration develop a time-phased inflationary inequity adjustment plan. This time-phased plan
would eliminate inequities horizontally and vertically across the matrix. Salary increases should correspond to the
pay matrix adjustment for that grade, and additional consideration should be given to employees whose salary have
not kept pace with pay matrix adjustments since FY1994. The recommended time period for this plan is three fiscal
years commencing with the 2004 fiscal year.
Example Inflationary Adjustment
As an example, an aggressive two-year inflationary adjustment schedule is illustrated:
Fiscal Year 2004: P&S Pay Matrix and employee salaries would be adjusted values as indicated in Table 3. As
shown, the proposed adjustments would bring grades P11 through 15 in line with an average salary growth of 1%
above inflation.
Table 3, Proposed Changes for P&S Salaries and Pay Matrix for FY20043
Grade
% Change Proposed for
Grade Minimum
% Change Proposed for
Grade Maximum
CPI Adjusted % Change
CPI Adjusted % Change
in Grade Minimum from
in Grade Maximum from
FY94 to FY04 (projected)
FY94 to FY04 (projected)
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.5%
1.0%
3.1%
3.3%
5.8%
5.7%
8.6%
9.2%
N/A
2.5%
2.7%
The above data is displayed in the attachment Chart 4.
P11
5.9%
6.1%
P12
5.8%
5.7%
P13
4.9%
4.4%
P14
3.9%
3.1%
P15
2.9%
1.8%
P16
1.0%
0.0%
P17
0.1%
0.0%
P18
0.0%
0.0%
P19
0.0%
0.0%
P20
0.0%
N/A
Average
2.5%
2.3%
Midwest CPI for FY 1994
141.8
Midwest CPI for FY 2004
180.4 (projected)
Percent Change
27.2% (projected)
3
CPI for 2004 is projected at 180.4, representing a 2.54% rise in consumer prices.
These adjustments will ensure that most salaries of employees in the P11-15 grades are on par with inflationary
pressures. However, further adjustments will be necessary for some satisfactorily-performing employees whose
salary growth rate have been lower than the overall rate for the pay matrix (salary compression). Employees in this
situation should be given additional consideration in allocating salary increases. As shown in Table 3, the cost for
implementing this strategy should be approximately 2.8% of the P&S salary base.
Recommendations for the FY04 P&S Pay Matrix
Page 3 of 6, Revision 5, March 26, 2003
Table 4, Aggregate salary increase for FY2004
Pay Grade
P11
P12
P13
P14
P15
P16
P17
P18
P19
P20
Column Sum:
Incumbents4
133
102
476
409
520
215
232
109
26
28
2250
Average Increase
6.0%
5.8%
4.6%
3.5%
2.4%
0.5%
0.0%
0.0%
0.0%
0.0%
Weighted Average:
Weighted Factor
8.0
5.9
22.0
14.3
12.3
1.1
0.1
0.0
0.0
0.0
64.195
2.8%
4
Incumbent numbers for February 2003, provided by HRS.
If the above changes were effected the P&S Pay Matrix for 2004 would then exist as shown below in Table 5:
Table 5, Proposed FY2004 P&S Pay Matrix
Pay Grade
P11
P12
P13
P14
P15
P16
P17
P18
P19
P20
Minimum
$ 27,323.00
$ 29,191.00
$ 31,598.00
$ 34,532.00
$ 38,139.00
$ 42,567.00
$ 48,002.00
$ 55,662.00
$ 65,225.00
$ 77,865.00
Hiring Range
First third
$ 30,044.00
$ 32,232.00
$ 35,016.00
$ 38,415.00
$ 42,591.00
$ 52,679.00
$ 60,459.00
$ 70,726.00
$ 83,549.00
Midpoint
$ 35,486.00
$ 38,315.00
$ 41,851.00
$ 46,180.00
$ 51,494.00
$ 57,947.00
$ 66,703.00
$ 78,258.00
$ 92,711.00
Maximum
$ 43,650.00
$ 47,439.00
$ 52,105.00
$ 57,829.00
$ 64,849.00
$ 73,752.00
$ 85,433.00
$ 100,853.00
$ 120,198.00
Fiscal Year 2005: The remaining inflationary inequities, from grades P16-20, would be eliminated across the P&S
Pay Matrix. The final matrix and salary adjustments would be made such that all grades are surpassing inflation
uniformly, by no less than 1%.
No projection for the 2005 CPI was made. Therefore a projected 2005 P&S Pay Matrix is not presented herein.
Reporting Inflationary Metrics
Inflationary metrics, such as the CPI or Midwest Regional CPI, should be incorporated into the Department of
Human Resource Services’ FY2004 “Annual Report on Professional and Scientific Salaries”, and subsequent
reports. The metrics should include data covering a minimum of five years; a discussion of the inflationary impact
on the P&S Pay Matrix should be included.
†The CPI represents changes in prices of consumer goods and services purchased. The CPI is the most widely used measure of
inflation. The CPI and its components are used to adjust other economic series for price change and to translate these series into
inflation-free dollars. Over 2 million workers are covered by collective bargaining agreements where wages are tied to the CPI.
The index affects the income of almost 80 million people as a result of statutory action for Social Security, military, Federal
Civil Service, and food stamp benefits recipients. Some private firms and individuals use the CPI to keep rents, royalties,
alimony payments and child support payments in line with changing prices. Since 1985, the CPI has been used to adjust the
Federal income tax structure to prevent inflation-induced increases in taxes.
Recommendations for the FY04 P&S Pay Matrix
Page 4 of 6, Revision 5, March 26, 2003
Appendix
Chart 1: CPI Adjusted P&S Pay Matrix Growth, FY94 to FY03
14.0%
Grade Minimum
Grade Maximum
12.0%
10.0%
Growth Percentage
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
P11
P12
P13
P14
P15
P16
P17
P18
P19
P20
Pay Grades
Chart 2: CPI Changes from FY94 to FY03
25%
Cumulative CPI Growth
Yearly CPI Growth
Yearly Grade Minimum Growth
Percent Change
20%
P20
15%
P19
P18
10%
P17
P16
P15
5%
P14
P13
P11
0%
1994
1995
1996
1997
1998
P12
1999
2000
2001
2002
2003
Fiscal Year
Recommendations for the FY04 P&S Pay Matrix
Page 5 of 6, Revision 5, March 26, 2003
Chart 3: CPI Changes from FY94 to FY03
25%
Cumulative CPI Growth
Yearly CPI Growth
Yearly Grade Maximum Growth
Percent Change
20%
P19
15%
P18
P17
P16
10%
P15
P14
5%
P13
P12
P11
0%
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Fiscal Year
Chart 4: CPI Adjusted P&S Pay Matrix Growth, FY94 to FY04
10.0%
Grade Minimum
Grade Maximum
9.0%
8.0%
Growth Percentage
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
P11
P12
P13
P14
P15
P16
P17
P18
P19
P20
Pay Grades
Recommendations for the FY04 P&S Pay Matrix
Page 6 of 6, Revision 5, March 26, 2003