MEMORANDUM

The Governor and General Assembly have provided adjustments to classified pay bands (salary ranges) as well as a pay increase for classified employees for fiscal year 2005-06.  The pay increase will be applied in the following order: 

1. Years of Service Salary Adjustment of $50 per year after 5 continuous years of state service
2. Classified Salaried Employee Performance Increase of 3.0% 

This pay increase does not apply to employees of the Medical Center (Agency 209).

The details about the pay increase are provided below, as is information regarding the adjustments to the classified pay bands, hourly (wage) non-student employees, and the new UVa minimum hiring rate.  Please share this information with your managers. 

As a reminder, completed Employee Work Profiles (performance evaluations) on classified salaried employees must be submitted to University Human Resources by Friday, October 14, 2005 (see 2005 Performance Evaluation memo at http://www.hrs.virginia.edu/mgrmemos/perfeval2005.html).  If a performance evaluation is not submitted, the employee will not be eligible for either of the two increases.

1.  Years of Service Salary Adjustment of $50* per year after 5 continuous years of state service:

Classified salaried employees with five or more years of continuous, salaried, state service as of November 25, 2005 (i.e., those who have State Hire Dates of November 25, 2000 or before), and who are rated “Contributor” or “Extraordinary Contributor,” will be eligible for a base salary increase of $50 per year for each completed whole year of continuous state service.  Increases related to years of service will be applied before the 3.0% performance increase.  Employees rated “Below Contributor” will not receive the $50 per year of service salary adjustment or the 3.0% performance increase.

Years of service will be calculated by subtracting the employee’s State Hire Date from November 25, 2005.  Only full years of service will be multiplied by $50 to determine the amount of the increase. There is no limit to the number of continuous state service years that will be credited to an employee.  Periods of wage employment, service purchased for VRS credit, and prior non-continuous service do not count in determining the amount of the increase.  Departmental HRMS Specialists may access employee State Hire Dates for their respective organizations by running the Discoverer report named “IS.HR_Current Salary Information.”  Employees interested in obtaining their State Hire Date should contact their HRMS Specialist.  Specific questions regarding the State Hire Date should be directed to Stacey Reeves, UHR Records Administrative Specialist (924-4389; sdw5z@virginia.edu).

Employees who have transferred to UVa from other Virginia state agencies (including the University of Virginia Medical Center Agency 209) will have their total years of continuous salaried service count, provided they do not have a break in service.  Service years that occurred before a break in service, even a break resulting from a layoff or other action beyond the employee’s control, will not be counted.  Service must be computed based on an employee’s current continuous salaried service, as indicated by the State Hire Date.

The $50 per year of service salary adjustment and/or the 3.0% increase may result in an employee’s salary being above the new range maximum of the respective Pay Band.  Where a new salary exceeds the respective pay band maximum, the employee will receive the amount above the maximum as a one-time, lump-sum payment.

* The amount of the $50 per year increase will be prorated for part-time salaried employees, who are working fewer than twelve months per year or less than 100% full-time (40 hours per week) on November 25, 2005.  For example, a qualifying employee who works 30 hours per week (75%), 12 months per year will be given an increase of $37.50 per year of service.  Another example is a qualifying employee who works 40 hours per week but who works 9 months per year (75%) will also be given an increase of $37.50 per year of service. A classified salaried employee who had been working full-time but whose status is part-time on November 25, 2005, will have their years of service increase prorated at the part-time rate for the entire period of continuous salaried service based upon the State Hire Date. An example is a qualifying classified salaried employee who worked full-time for several years but whose status is 50% part-time (20 hours per week) on November 25, 2005 will have their years of service salary adjustment computed at $25 per whole year of continuous service from their State Hire Date (No special adjustment of $50 will be made for the years worked in a full-time status).  The years of service for part-time employees will be based on the State Hire Date.  

2.  Classified Salaried Employee Performance Increase of 3.0% 

Effective November 25, 2005, all non-probationary full-time and part-time classified salaried employees will receive a 3.0% performance (merit) increase for receiving a rating of “Contributor” or “Extraordinary Contributor” for performance during the performance cycle ending October 24, 2005.  Employees rated "Below Contributor" will not receive the performance increase.  In some cases, the result of not receiving a performance increase will place an employee’s salary below the new minimum of the employee’s respective Pay Band.  The salary will remain below the minimum until the employee is eligible to receive additional increases through In-Band Adjustments, other pay practices, or future performance increases. 

Performance Increase for Probationary Employees (those with less than one year of service):

Classified full-time and part-time salaried employees hired between October 25, 2004 and July 24, 2005 will be eligible for a probationary pay increase of 3.0% provided the employee receives a performance evaluation rating of “Contributor” or “Extraordinary Contributor.”  Employees rated "Below Contributor" will not receive the performance increase.  If a performance evaluation is not received in University Human Resources by October 14, 2005, the employee will not be eligible for a performance increase. 

Classified salaried employees hired between July 25, 2005 and October 24, 2005, will not be eligible for the 3.0% performance increase.  In some cases, the result of not receiving a performance increase will place an employee’s salary below the new minimum of the employee’s respective Pay Band.   Probationary employees are eligible to receive In-Band Adjustments and other management-initiated pay practices 

Additional Information:

Adjustment to Classified Pay Bands (Salary Ranges):

Effective November 25, 2005, the salary ranges of each Pay Band will be increased by 3.0% prior to granting any performance increases.  This is an adjustment to insure that the classified pay bands remain competitive.  No employee’s salary will change as a result of the adjustment to the Pay Bands.  The current pay bands are illustrated on the University Human Resources web page at www.hrs.virginia.edu/salarygrid.html .

Employees on Leave and Their Eligibility for the Performance Increases

• Employees who are on short term disability or other paid leave will receive the $50 per year of service and the 3.0% performance increase effective November 25, 2005, with submission of a completed Employee Work Profile (performance evaluation) with a rating of “Contributor” or “Extraordinary Contributor.”
• Employees on “Long-Term Disability- Working Status” will also have the salary adjustments applied to their current rates of pay.  The adjustments do not apply to employees who are on “Long-Term Disability- Termed Status.”
• Periods of long-term disability working status do not result in revised State Hire Dates for employees who immediately return to work upon being released by their licensed treating physician.  Employees in this situation have not separated from UVa state service and, therefore, their eligibility for the $50 per year increase is unaffected by the period of disability.
• Employees on leave without pay are not eligible for the $50 per year or the 3.0% increases until they return to work or paid leave, and until a completed Employee Work Profile (performance evaluation) is submitted with a rating of “Contributor” or “Extraordinary Contributor.”

Classified/Temporary Hourly (Wage) Employees (excluding Students)

Schools and departments will have the discretion to provide pay increases to hourly employees effective November 25, 2005 for the biweekly payroll period of November 23, 2005 through December 6, 2005.  Increases may not exceed 3.0%.  No central budget is being provided for wage (hourly) pay increases.

Schools and departments choosing to increase hourly rates up to 3.0% should do so on-line via the HRMS.  Please instruct your human resource/payroll representative to initiate the entry(ies) no later than December 1, 2005, specifying an effective date of November 25, 2005, and selecting HRMS Reason Code “General Salary Adjustment—Classified Wage.”  Hourly increases submitted through the HRMS must be approved on-line by the UHR Office of Compensation & Rewards.  Schools and departments who do not provide hourly performance increases during the November 23, 2005 through December 6, 2005 biweekly pay period will need to submit increase requests during a future quarterly in-band adjustment review process.

Unit Rates

Unit rates will not be increased.  Departments wishing to increase unit rates, effective November 25, 2005 for the biweekly payroll period of November 23, 2005 through December 6, 2005, should submit an Earnings Element Request Form (http://www.hrs.virginia.edu/forms/EERF.doc) to the UHR Office of Compensation & Rewards by the close of business on December 1, 2005.

New UVa Minimum Hiring/Starting Rates (Classified Salaried and Classified Wage)

Effective December 21, 2005 in the Academic Division (Agency 207), the minimum hiring rate for any classified salaried or classified wage employee (including UVaTEMPS) will increase by 3%, from $17,930 ($8.62 per hour) to $18,468 ($8.88 per hour).  Any classified salaried or classified wage employee whose salary or wage falls below $18,468 ($8.88 per hour) after receiving the increases described previously will have their base salary or hourly wage adjusted to the new minimum hiring rate.  However, a classified salaried employee who is rated “Below Contributor” on their evaluation and whose salary falls below the new minimum rate is not eligible to be raised to the new minimum rate effective December 21.  Her/his salary will remain below the minimum until the employee is eligible to receive additional increases through In-Band Adjustments, other pay practices, or future performance increases.  Adjustments will not be centrally funded.  University Human Resources will notify schools and departments of their affected employees.  The new minimum hiring rate does not apply to UVa’s College at Wise.