Inside Iowa State: Iowa State University

April 30, 2004

Salary increase average will be at least 1.5 percent

by Anne Krapfl
Salary increase instructions this spring are different for faculty and Professional and Scientific employees. However, the average salary increase -- at least 1.5 percent -- should be the same for both groups.

President Gregory Geoffroy sent compensation policy and implementation procedures for FY05 to the three vice presidents April 26. The policy is based on zero additional dollars from the state for salaries and benefits, and thus assumes self-funding within the university.

Geoffroy previously announced a 2 percent reallocation, in part to cover the cost of salary and employee benefits increases. He said he hopes the average salary increase for faculty and P&S staff will be "closer to 2 percent, when all is said and done."

Salary pool
All ISU general fund units (this includes the general university, Ag Experiment Station, Cooperative Extension, Institute for Physical Research and Technology, Leopold Center, Small Business Development Center, Research Park and healthy livestock research initiative) will receive a pool of salary money equal to 1.5 percent of their (continuing) employee salary base, to be used for faculty and P&S staff salary increases only.

Each of the three vice presidents will receive another allocation to address equity and market issues. Each vice president has been asked to share with Geoffroy his plan for distributing equity dollars before he implements it.

Similar to last year, units may reallocate to boost funds available for salary increases, although the appropriate vice president must approve all such reallocations. The average salary increase within any one college or division can't be more than 2.5 percent.

Faculty performance increases
Faculty members receiving a satisfactory evaluation will receive a salary increase of at least 0.5 percent. Salary increases above this amount will be based on individual merit. Faculty members receiving an unsatisfactory evaluation will receive a salary increase less than 0.5 percent and must receive a written rationale for the action. Promotion increases ($3,000 for promotion to full professor and $2,500 for promotion to associate professor) are not substitutes for merit increases.

P&S staff performance increases
As recommended by the P&S Council and approved this month by the Board of Regents, State of Iowa, P&S staff who meet performance expectations will receive a minimum salary increase equal to 0.75 percent of the midpoint in their pay grade (see chart).

Minimum P&S increases
for satisfactory performance
(0.75% of pay grade salary midpoint)

Pay grade
11
12
13
14
15
16
17
18
19
20

Min. increase
$259
$280
$309
$345
$389
$448
$515
$605
$716
n/a

Salary increases above this amount will be based on individual merit. Salary increases for K-base (individual contract) employees will be figured using the same criteria.

In addition, the minimums and maximums of each pay grade in the P&S pay matrix will increase 3 percent. The matrix, revised for FY05, is posted online, on the Human Resource Services Web site. University budget planners estimate that 90 to 95 current P&S employees will receive increases to bring them to the new salary minimums in their pay grades (and this amount will be included in allocations to the affected general fund units), in addition to performance increases as outlined above.

Merit staff increases
Iowa State will honor the terms of the collective bargaining agreement between the state and AFSCME for contract-covered merit employees. Merit employees will receive a 4.5 percent salary increase on their anniversary dates, up to their pay grade maximums. An across-the-board increase typically implemented July 1 will occur instead this year on Jan. 1, 2005. It provides another 2 percent salary increase to all merit employees. Also, merit employees who have reached their pay grade maximums by Dec. 31 will receive an additional 2 percent increase on Jan. 1, 2005.

Staff layoffs for FY05
The cost of self-funding salary and benefits increases already is being felt at Iowa State. The current version of the university's budget for FY05, which will be presented to the regents in June, includes the elimination of 26 filled positions (eight P&S and 18 merit positions). Geoffroy said he is hopeful that some of these employees will find other jobs on campus.