Iowa State University

Inside Iowa State
July 5, 1996

Pay hikes for faculty, P&S staff to average 2.77 percent

Merit staff raise 2.5 percent

by Anne Dolan
Salary increases for faculty and professional and scientific staff will average 2.77 percent for FY97. The total compensation average increase, including benefits, is 3.2 percent.

Final salary figures from the state were not available in time for ISU to include increases in the July payroll, so faculty and P&S staff will receive their salary increases in the August payroll. The increases will be retroactive to July 1, the first day of the fiscal year.

According to the new salary guidelines, faculty and P&S staff who are meeting performance expectations should receive salary increases of at least 1.33 percent. Salary increases above 1.33 percent should be based on merit or equity or market factors. The university-wide goal is to increase salaries for continuing faculty and P&S employees an average of 2.9 percent.

As outlined in their current contract, all merit employees received 2.5 percent salary increases, effective July 1. Merit employees who are eligible also will receive step increases and one-time bonuses.

Pay hikes for faculty and P&S staff will be smaller than initially expected for several reasons:

  • Projected health care savings to the state that were to be used to help pay salary increases haven't come through yet. State officials anticipate there will be a second salary allocation gained from health care savings later in the year. However, ISU pay hikes will reflect only salary allocations so far.

    "The salary pool at Iowa State depends on what's allocated to us," Jischke said. "Our policy is to not reallocate internally to cover salary increases and we think it is a good policy."

  • University officials used salary and benefits funds to pick up a majority share of health care cost increases. As a result, employees will only have to pick up about a third of the 14 percent increase.

  • Salary increase dollars also will cover pay hikes for positions paid by federal funds and positions covered, in effect, by indirect costs. State lawmakers announced this spring they will not allocate dollars for salary and benefits increases for these positions. The cost to Iowa State of funding the salary increases for these positions is $597,789.

    Health insurance premiums
    The June 28 payroll reflected premium increases for employees covered by Principal health insurance, Principal dental insurance and Preferred Blue. Affected employees received notification of this in the "memo" section of their payroll receipt last week. The new coverage began July 1, but health care premiums are paid a month in advance.

    New health care rates for the State of Iowa Blue Cross/Blue Shield plans and HMOs go into effect Aug. 1. Premium increases to be covered by the employee will be reflected in the July 30 payroll. All merit employees affected by these changes should have received a memo and new rate chart.

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