Guidelines for Administration of the FY 2019-20 Merit Pay Plan for PPSM Policy-Covered Staff
The following guidelines are designed to assist departments in implementing the FY 2019-20 merit pay plan for eligible staff. This program applies to policy-covered non-probationary staff in career or partial-year career appointments. It excludes student employees and anyone covered by Academic Personnel Policies or a union contract. As the program is intended to emphasize pay for performance, salary increases will reflect the individual's performance and contribution.
The merit increase pool will be 3 percent of the payroll base of filled positions in eligible job categories. As communicated during the FY 2019-20 budget process, funding will be provided for staff paid on general funds to accommodate the increase in expenditures.
Merit increases for eligible staff will be retroactive to July 1, 2019 for monthly paid employees and June 30, 2019 for bi-weekly paid employees.
Policy-covered staff appointed and on payroll before January 1, 2019, are eligible for merit increase consideration except as noted in paragraph 2 below.
Contract appointees who are subject to PPSM Salary Policy 30 under the terms of their employment contract are eligible for merit consideration.
For Senior Management Group (SMG) employees, salary actions are in accordance with criteria established by the Office of the President and require approval by the Chancellor, the President and/or the Regents.
The following categories and appointment types are not eligible for a merit increase:
floater (Health System)
on probationary status as of June 30, 2019
rehired retirees who have not suspended their UCRP payments, including those rehired retirees who received a lump sum cash-out of UCRP benefits at retirement.
Performance Criteria and Factors to Consider
Written performance evaluations should be completed in accordance with PPSM 23. The performance appraisal is intended as a means of measuring and enhancing individual, team, and institutional performance, fostering professional development and career growth, aiding in the determination of merit increases, and meeting the internal and external demands for documentation of individual performance.
Within-grade salary advancement is based primarily on merit. The amount of an increase should depend on the individual’s performance as it relates to current pay and the accomplishment of assigned responsibilities and performance expectations, position within the salary range, performance relative to other members of the review unit, and the established fund pool.
The 3 percent merit control figure is not intended to result in across-the-board salary increases, and individual increases will vary based on the criteria noted in paragraph b above and the individual’s overall contribution, as reflected in the most recent performance appraisal. Staff members with a performance rating of "unsatisfactory" or "does not meet expectations" should not be recommended for an increase. Additionally, employees whose performance rating is "partially meets expectations" should receive a lower increase than stronger performers in the review unit.
For employees who recently received an increase or have not yet completed a full year of service in the position, the department may consider whether a pro-rated increase would be appropriate based on when the last increase was received.
Applicable Policies and Procedures
This salary plan is made pursuant to Salary Policy PPSM 30. All regular approval processes and approval levels will apply to salary actions under this plan.
Transactions resulting in total annual cash compensation above $318,000 must be submitted in advance to Campus Human Resources for approval by the Chancellor. Salary actions for SMG employees and some Management and Senior Professional (MSP) employees also require approval by the UC President.
One-over-one approval of actions is required; for example, an increase for a supervisor’s direct report must also be endorsed at the next management level.
All resulting salaries should be within the applicable salary range and grade. Range structure adjustments have not been authorized by the UC Office of the President so we will continue to use the FY 2017-18 salary ranges. Any exceptions require advance review and approval by Campus Human Resources or UCLA Health Human Resources.
Information regarding implementation dates and processes will be sent to HR administrators by Compensation Services. For questions, please contact your Compensation Consultant in Campus Human Resources (310-794-0890) or UCLA Health and School of Medicine (310-794-0500).