Origination Date: 23 July 2010
Errors or changes to: firstname.lastname@example.org
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All University Deans, Directors, and Budget Unit Managers
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President Spaniolo approves merit salary pool to eligible faculty and staff.
Merit increases are rewarded to employees on the basis of work performance over the past year.
The University's merit policies are usually specified in the Budget Preparation instructions for the next fiscal year. During a legislative session year (odd numbered years), a merit policy for the next fiscal year is generally deferred until the Appropriation Bill for the next biennium is passed by the State of Texas Legislature and signed by the Governor. In these years, a merit and or equity policy decision might be delayed until early June, once the University knows for certain what its appropriations for the next two fiscal years will be.
Unfilled positions due to resignations or retirements are excluded from the merit pool calculation. New employees who started employment after March 1st of the current year are not included in the merit pool allocation.
The merit salary pool allocation spreadsheet, showing your merit decisions are delivered to the appropriate administrative office (President, Provost, Vice President for Business Affairs and Controller and Vice President for Administration and Campus Operations). The president will specify the date and time to submit for inclusion in the current fiscal year operating budget. The President, Provost, and Vice Presidents will then forward the approved and signed merit allocation spreadsheets to the Budget Office.
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Please notify the Budget Office (Ext. 2-5500) or the Provost Office (Ext. 2-2299) if you have any questions or adjustments (reductions or increases) to the calculated merit pool allocations.
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The qualifications for inclusion in the merit pool salary lump sum calculation and allocation are as follows:
The employee must have been employed on or before March 1st of the current year, and the employee must be a member in TRS, ORP, or a retiree appointed 50% time or more.
Employees who receive a salary increase for equity or promotion after March 1st of the current year within the same department or budget unit may still qualify for a merit salary increase. However, the merit pool calculation will be based on the pay rate of the employee on or before March 1st of the current year. The merit pool will not be adjusted to the approved merit increase of the new rate effective after March 1st of the current year. Merit adjustments are awarded for job performance over the previous year.
Generally, employees who transfer from one Vice Presidential unit to another after March 1st do not qualify for a merit increase on September 1st of the current year. Merit funds do not follow an employee to a new job when the employee changes Vice Presidential units. These merit funds will be returned to the original source of the merit pool funds.
Merit pools for (14) educational and general accounts cannot be commingled with merit pools from other fund groups (19 or 29) unless approved by the Provost or Vice Presidents.
Merit pools are intended to be used on the personnel classifications from which the merit allocation pools are calculated.
To receive a merit increase, employees must have received a "Solid Performance" (SP) or higher rating on their annual employee performance reviews. Managers should award the merit increase based on each individual's performance over the past year. This does not mean that all employees should receive the same percent increase. Faculty must be similarly rated to be eligible for a merit increase.
Merit pools available for distribution to employees in a budget unit will be reduced by the approved merit increase of the salary of any employee who retires or resigns prior to September 1st of the current year. Please make sure you keep your merit pool listing current.