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Recommendations for the FY04 P&S Pay Matrix
Iowa State University Professional and Scientific Council
Respectfully submitted by the Compensation & Benefits Committee
Whereas: Seen in Table 1, below, Midwest Regional Consumer Price Index (CPI) data from the US Department of
Labor, Bureau of Labor Statistics, indicates that the salary ranges for grades P15 and lower have not kept pace with
inflationary pressures; and, as shown on table 2, over the same period, Merit grade minimums and maximums have
out-paced inflationary pressures on average of 13 and 18 percent, respectively.
†
Table 1, Gross and Inflation Adjusted Changes to P&S Pay Matrix from FY1994 to FY2003
Grade
12
13
% Change in
Grade Minimum from
FY94 to FY03
P11
21%
P12
21%
P13
22%
P14
23%
P15
25%
P16
27%
P17
28%
P18
30%
P19
33%
P20
36%
Average:
27%
Midwest CPI for July 1993
Midwest CPI for January 2003
Percent Change
% Change in
Grade Maximum from
FY94to FY03
21%
21%
23%
24%
26%
29%
30%
33%
36%
27%
CPI Adjusted % Change
in Grade Minimum from
FY94to FY03
-5%
-5%
-4%
-3%
-1%
1%
2%
5%
7%
11%
-1%
CPI Adjusted % Change
in Grade Maximum from
FY94to FY03
-5%
-5%
-3%
-2%
0%
3%
4%
7%
10%
1%
140.0
176.2
25.9%
†
Table 2, Gross and Inflation Adjusted Changes to the Merit Pay Matix1 from FY1994 to FY2003
Grade
14
15
16
% 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
1
35%
43%
9%
18%
2
35%
43%
9%
17%
3
52%
58%
26%
32%
4
49%
55%
23%
29%
5
45%
51%
19%
25%
6
44%
47%
18%
21%
7
40%
43%
14%
17%
8
40%
42%
14%
17%
9
36%
42%
10%
16%
10
36%
43%
10%
17%
11
36%
42%
10%
16%
12
36%
41%
10%
15%
13
35%
41%
10%
15%
14
35%
42%
9%
16%
15
37%
42%
11%
16%
16
38%
41%
12%
15%
17
37%
40%
11%
14%
18
37%
39%
11%
13%
Average:
39%
44%
13%
18%
Midwest CPI for July 1993
140.0
Midwest CPI for January 2003
176.2
Percent Change
25.9%
†
CPI Data from US Dept. of Labor Bureau of Labor Statistics (www.bls.gov)
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Comparison based on Non-organized Merit Pay Matrix for 1994 and 2002 Regent Merit System Pay Plan.
Recommendations for the FY04 P&S Pay Matrix
Page 1 of 2, Revision 2, March 11, 2003
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It is moved: The P&S Council recommends the FY04 P&S Pay Matrix be adjusted to level inflationary inequities in
the P&S Pay Matrix, that have evolved in the last 10 years, by adjusting the grade minimum and maximum values as
indicated in Table 3:
†
Table 3, Proposed Changes for the P&S Pay Matrix for FY2004
Grade
7
8
9
10
11
12
13
14
15
16
17
18
19
% Change Proposed for
Grade Minimum
% Change Proposed for
Grade Maximum
CPI Adjusted % Change
in Grade Minimum from
FY94 to FY04 (projected)
1.0%
1.1%
1.0%
1.0%
1.0%
1.0%
1.1%
1.8%
4.2%
7.7%
3.3%
P11
7.2%
7.4%
P12
7.1%
7.0%
P13
6.1%
5.6%
P14
5.1%
4.3%
P15
4.1%
3.0%
P16
2.2%
0.8%
P17
1.3%
0.0%
P18
0.0%
0.0%
P19
0.0%
0.0%
P20
0.0%
Average
3.3%
2.6%
Midwest CPI for July 1993
140.0
Midwest CPI for January 2004
180.2 (projected)
Percent Change
28.7%
†
CPI for 2004 was projected at 180.2, representing a 2.3% rise in consumer prices.
CPI Adjusted % Change
in Grade Maximum from
FY94 to FY04 (projected)
1.1%
1.0%
1.0%
1.1%
1.0%
1.0%
1.6%
4.3%
7.1%
2.1
It is moved: That salary increases within each grade should mirror the changes made to grade minimums and
maximums, in order to level the inflationary inequities for current employees. As shown in Table 3, the proposed
adjustments would bring all affected grades inline with an average growth of 1% above inflation.
It is further moved: Inflationary metrics, such as the CPI, should be incorporated into the Department of Human
Resource Services’ FY2004 Annual Report on Professional and Scientific Salaries, and subsequent reports. These
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.
Recommendations for the FY04 P&S Pay Matrix
Page 2 of 2, Revision 2, March 11, 2003
Cumulative and Yearly CPI Changes from 1993 to Present
30%
Cumulative CPI Growth
Yearly CPI Growth
25%
Percent Change
20%
15%
10%
5%
0%
1993
1994
1995
1996
1997
1998
Calendar Year
1999
2000
2001
2002
2003
Inflation Adjusted P&S Pay Matrix Growth, FY1994 to FY2003
10%
8%
Grade Minimum
Grade Maximum
6%
Growth Percentage
4%
2%
0%
-2%
-4%
-6%
-8%
P11
P12
P13
P14
P15
P16
Pay Grades
P17
P18
P19
P20