Summer Pay Policy Change Implementation Plan

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The following Implementation Plan affecting summer compensation for academic-year staff was
approved at the April 2012 Board of Trustees meeting in Special Meeting of the Compensation
Committee.
Proposed Summer Pay Policy Change Implementation Plan
March 2012
Introduction: The summer pay policy recommendation submitted by the summer pay policy review
committee on December 2, 2011 was structured to accomplish two primary objectives: 1) to adjust the
summer pay rate to match the base pay rate used throughout the academic year, and 2) to adopt a
summer pay policy that is based on monthly effort (rather than weekly).
We propose a two stage implementation that will accomplish both primary objectives by the summer of
2013.
Stage 1: Issue an interim policy to address the summer pay rate immediately.
In stage one, we recommend the issuance of an interim policy C-26 (Employment Period for AcademicYear Staff) that changes the summer pay rate by amending item #5 as follows:
from “the rate of 2.5% per week of his/her approved academic-year salary rate/s”
to “the rate of 2.778% per week of his/her approved academic-year salary rate/s.”
In addition, the conversion from academic-year to fiscal-year and vice versa should be adjusted as
follows (amends C-26 #6):
AY to FY, increase the AY salary by 5/18, or 27.78% (from 25%)
FY to AY, decrease the FY salary by 5/23, or 21.74% (from 20%)
This will allow immediate response to the issue of pay rates without requiring extensive system changes
and fundamental redesign of effort reporting and all aspects of the summer pay process.
Risks associated with increasing the pay rate through the issuance of an interim policy include:
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There is limited time to find a funding strategy for general funded instruction both in the short
and long term. The Deans were very strong in their feedback that this change should not be
implemented without adequate recurring general funds being provided to fund it.
This provides a very short lead time for principal investigators to make adjustments to their
budgets if commitments for salary to impacted staff are already in place.
Time to obtain Board of Trustee approval is limited.
Without a strong commitment to pursuing stage 2, the change to the rate does not fix the flaws
in our current policy nor does it simplify our summer pay practices.
Compensation will be based on effort extended and the decision regarding effort extended is
made at the campus and/or college level.
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The following Implementation Plan affecting summer compensation for academic-year staff was
approved at the April 2012 Board of Trustees meeting in Special Meeting of the Compensation
Committee.
Stage 2: Immediately charge an implementation team to issue a summer pay policy that is based on
semester effort with monthly pay prior to the summer of 2013 hiring process. This revised pay policy
should be established in accordance with University policy for changing University policies and
supported by procedures, tools and communication and training strategy.
The recommended change to the summer pay policy requires a change from viewing pay on a weekly
basis to viewing it on a semester basis. This change requires significant changes to our core effort
reporting approach, the summer pay calculator, as well as the revision of a number of policies and
procedures as identified below.
Impacted Active University Policies:
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Executive Memo C-26, Employment Period for Academic-Year Staff
Policy II.C.2 Salary of Academic Administrative Officers Returning to the Faculty
Executive Memo C-40, University Policy on Compensation for Summer Intensive Instructional
Activities and Non-Continuing Education Overload Activities,
Executive Memo B-50, Terms and Conditions of Employment of Faculty Members
(Pending) Research Faculty Appointment and Promotion
Executive Memo C-18, Compensation Policies for University Staff Members Participating in
Continuing Education Activities
Section IV.B - As set forth in Executive Memorandum No. C-26, academic year staff may be
employed during the summer for a period not to exceed a total of twelve (12) full-time weeks.
Impacted procedures and related issues:
Review of current offers and contracts
To understand the full impact of the change, units will need to do a full review of current offers and
existing contracts.
Procedure/guideline documents
 Provost Guidelines for Summer Support
 Summer Employment Guidelines (title on web is Summer Employment Policies)
Guidelines for Research Faculty Appointments (update to original July 2005 document is in
process) - On page 2 of the Guideline for Research Faculty appointments there is phrase “You
also have the opportunity to augment your salary in the summer up to 12 additional weeks for
research grants (subject to Research faculty Funding Guidelines).” That will need to change to
“three (3) full-time months” for consistency.
Forms
 Form 19 Appointment to the Faculty
 Summer Pay Calculator, instructions and examples
 Summer Employment Calendar/Acknowledgement (Acknowledgement is required for faculty
working 12 weeks during the summer)
 Possible NSF Salary Calculator (verify formulas for Purdue summer calculation)
http://www.purdue.edu/business/sps/xls/nsfsalarycalc.xlsx
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The following Implementation Plan affecting summer compensation for academic-year staff was
approved at the April 2012 Board of Trustees meeting in Special Meeting of the Compensation
Committee.
Communication/Training
Planning for the summer pay cycle begins in the spring semester. The implementation team will
develop a communication and training strategy for all impacted community members.
Funding: A funding strategy that resolves both short-term and long-term financial implications must be
developed and communicated to impacted units. All fund sources are impacted.
Page 3 of 3
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