2010 Merit Program
 Overview – General Information
 Employee Eligibility
 Merit Allocation Pools & Funding
 Merit Awards, Process, Rules
 Draft Timeline
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Overview – General Information
 Merit is a salary adjustment to recognize an
employee’s contributions in meeting
established goals & objectives.
 Based on most recent performance evaluation
 Template & instructions will be reviewed with
area leads (as in past years).
 Each division may have a different internal
process as long as other ‘rules’ outlined in the
policy are met.
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Employee Eligibility
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Hired on or before February 28, 2010
Benefits eligible - appointment 50% or greater
Student titled positions are ineligible
Classified and Administrative & Professional
(A&P) staff must have a current performance
evaluation on file at Human Resources.
 Faculty specific requirements established by
the Provost.
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Merit Awards – One Time Payments
 All awards will be paid as a lump sum in the
December 2010 regular paycheck.
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Subject to normal withholding taxes
 Due to concerns about the budget reduction in FY
2011 and permanent state revenue losses expected
over the next biennium, funding is not currently
available to commit to adjust base salaries.
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Merit Allocation Pools
 A “blended” allocation pool will be based on:
 Annual salary rate of eligible employees as of May 1,
2010.
 2.7% for Classified Employees
 2.2% for A&P and Faculty
 No additional allocation for salary changes that occur
after May 1, 2010.
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Merit Allocation Pools
 Employees are separated by Faculty, Classified & A&P,
then grouped by division, college or department.
 Pool reallocations may be made by a division executive
and or as necessary to regroup all managers that report
to a particular VP, Dean or AVP:
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Faculty allocation must be used only for faculty positions. A&P
allocation can be re-distributed to Classified, but not vice-versa.
Overall pool amount by fund may not be exceeded. No exceptions.
All fund groups have the pool amount calculated the same.
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Merit Award Process / Rules
 HR will provide general award guidelines
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Methods must be approved by HR prior to submission of
templates to Budget Office.
 No min or max % is specified but the total allocation
to each area may not be exceeded or supplemented
with departmental funds.
.
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Merit Award Process / Rules
 Payout is contingent on continuous employment of
at least 6 months prior to effective date (5/31 for 12/1
payout)
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Terminated/separated employees will not be entitled to the
one time merit payment if they are not on the payroll when
the one time payments are processed
 Internal employee job changes are not impacted.
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The one-time merit award follows the employee.
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MERIT PROCESS TIMELINE 2010 - Draft
May – July
Merit Policy approved & communicated; Area Leads identified
August 12
Board of Regents approves UTSA budget & merit program
August 30
Information Sessions with Area Leads; Templates sent to Area Leads
August 31
Area Leads distribute templates, each division
determines/communicates internal process
Sept 15
Templates due back to Area Leads for review
Sept 20
Templates due to Budget Office (Excel files)
October
Budget allocates one time funding; Departments begin entry of
awards into HRMS
Oct / Nov
Other Internal processing by central offices
December
Employee receives one time merit in paycheck
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Source of Funds for Merit
 Education & General (E&G) Accounts (14-xxxx-xx)
are funded from central budgeted sources.
 Non-E&G funded positions that receive merit are
covered from the fund source of the appointment on
the date merit is paid.
 Grants & Contracts (26-accounts) will be awarded
merit pay if the grant or contract allows such to be
funded.
 Exceptions must be approved in advance by VPBA.
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Budget for Non-E&G Merit
 Given variable rates, actual net cost impact will
vary by budget group based on position types.
For example: Fee account ABC has 3 positions:
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2.0 FTE Classified earning $35,000 x 2 = $70,000 * 2.7% = $1,890
1.0 FTE A&P earning $60,000 * 2.2% = $1,320
Total Merit Budget = $3,210 / $130,000 = 2.5% (not 2.3%)
Review your FY 11 budget & estimated carryforward to assure
you will have sufficient one-time money to cover merit.
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Budget: Non-E&G Benefit Rate Increases
 Medical – group health insurance will go up ~12%
 UCI rate will increase ~57%. The rate is applied to
maximum of $9,000 salary per employee
 TRS Retirement contribution rates will increase
slightly ~1%
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Budget for Non-E&G Benefit Increases
 Net impact to benefit rates (as a percentage of
total salary costs) will vary between 4 - 8%
(includes annualized one time merit)
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High salary rates per FTE, lower the net overall percentage increase
Low salary rates per FTE, higher the net overall percentage increase
 FY11 benefits calculator will be posted to the web
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Recalculate your estimated benefits costs
Add one time merit payment to annual salary costs
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