Mandatory University Costs

Definition

Mandatory Costs are university-wide compensation increases, fringe benefit increases, debt service, and chargebacks from UT System.

Decision

Funds for merit and market-based compensation increases and fringe benefit increases are taken off the top from new revenue for all eligible employees to ensure that employees are treated equitably regardless of the unit in which they work.

Debt service and chargebacks from UT System are also taken off the top from new revenue because they are mandatory costs that do not belong to any one unit.

Impact

This allows those who have performance ratings of "Solid Performer" and above to be eligible for a merit increase regardless of the funds available in their unit. It prevents a situation where one unit can afford a merit pool, and another cannot.

In addition, fringe benefit increases are treated as Mandatory University Costs to protects employees from fringe benefit increases that would lower their take-home pay and could create a hardship for employees.