Iowa State University

Inside Iowa State
Sept. 20, 1996

More funds boost October payroll

Eligible employees will receive about 0.4 percent increase

by Anne Dolan
Eligible faculty and P&S staff will receive in their October paychecks a piece of $680,483 in supplemental funds allocated this month from the state of Iowa. The figure erases part of a $1.7 million shortfall in compensation (salary and benefits) increase dollars to Iowa State dating back to July.

The additional dollars came from a state health insurance rebate reserve fund. University officials anticipate the state will make up the remainder of the shortfall, but that additional funds would be allocated no more often than quarterly.

ISU administrators have worked for several weeks on a salary policy to distribute the $680,483 as well as any subsequent allocations to General Fund units. The policy, however, applies to all budget units, including units whose faculty and P&S salaries are funded by sources other than the General Fund.

Under the policy, the additional compensation dollars will be distributed in the October payroll in the form of an across- the-board percentage, calculated on FY97 salaries. While it is expected to be in the vicinity of 0.4 percent, the exact percentage is not known yet because not all employees will receive a supplemental salary adjustment. The policy outlines who is eligible for this supplemental increase:

  • Only those faculty and P&S employees continuing in employment from FY96 (which ended June 30) and still on the payroll in October are eligible for supplemental funds.

  • Faculty and P&S employees who received an increase of 1.33 percent or less this year are not eligible for supplemental funds. The salary policy this summer set the increase for expected performance at 1.33 percent (or 1/3 of a 4 percent average compensation increase). Increases above 1.33 percent reflect high work performance and market and/or equity considerations.

  • P&S employees at or above the maximum of their pay grades are not eligible for supplemental funds. P&S employees who are below the maximum of their pay grades (and who received more than a 1.33 percent increase this year) are eligible to receive supplemental funds, but not to exceed their pay grade maximums.

  • K-base employees with negotiated FY97 salaries are not eligible for supplemental funds.

  • Graduate assistants are eligible for supplemental funds.

  • Pre- and post-doctoral employees may be eligible for supplemental funds, depending on individual appointment terms and salary maximums. The appropriate budget units will make these decisions, with approval required by the Graduate College dean.

    For now, the additional funds are considered retroactive (to July 1), supplemental increases. University officials anticipate that the additional dollars will become part of the base salaries of all employees receiving them, but the final base salaries for FY97 will be determined next spring. Factors in that decision include: the amount of total supplemental salary funds ISU receives and whether the state restores the additional dollars to base salaries as the FY98 budget takes shape in the spring.

    If more supplemental salary adjustment funds are allocated by the state in subsequent quarters, eligible faculty and P&S staff who still are on the payroll at that time (March or April) will receive more supplemental funds. The same policy of eligibility and distribution would be used at that time.

    For more information on the salary policy, contact Rabindra Mukerjea, assistant to the president for budget planning and analysis, 117A Beardshear, 4-0585.

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