Pay Administration Guidelines FY09 COLA/Merit Meeting

1. Pay Administration Guidelines FY09 COLA/Merit Meeting May 14 & 15, 2008

2. Welcome • Patricia Ilowite Compensation/Benefits • Michelle Mahan Benefits • Renee Mason International Affairs • Juliet Dickerson HRSC/Staffing • Pam Palmer Compensation • Jackie Ball HR Service Center • Jim Airey/Ron Powell SOM Dean’s Office • Candace Chow Payroll • Stephen Eddy HR e-Learning

3. Benefits

4. Benefits Team • Joanne Rainey- Benefits Associate • Vernell Cooper-Benefits Associate • Sandy Jones- Benefits Specialist • Michelle Mahan- Benefits Manager • Patti Ilowite- Director of Compensation & Benefits

5. Open Enrollment • Ends Wed. May 14th • Employees received email/memo after submitting form stating dependent documentation is due 6/1 if they added a dependent. • DBM will audit in the summer & letters will be sent to employees. Payroll Reps. will be copied.

6. Medicare Reminder • Employees should not enroll in Medicare Part A & B until retirement. • State of MD Retirees must enroll in Medicare upon eligibility (age 65) or claims will be paid by vendor according to Medicare guidelines (20%). Retiree will be responsible for remainder of balance (80%).

7. Retirement Updates • Filing for Retirement- new web page • Fall Retirement Seminars on Campus • Work/Life Strategies

8. International Affairs

9. Human Resources Service Center(HRSC)

10. Human Resources Service Center(HRSC) • Department of Homeland Security is tracking mismatches of SS#’s in conjunction with the Social Security Administration • New regulations will require employers to correct mismatches in 5 business days - most due to human error • Verbal verification of social security numbers is no longer allowed • New hires must present their social security card • We still have the ability to get temporary numbers for newly hired foreign born employees

11. HRSCHire dates • Please ensure that your new hire paperwork accurately reflects the correct hire date • Recent situations include employees starting in January, and requests made in April to change the original hire date which was off by 2+ weeks • Tremendous effort involved to correct this type of action in eUMB and it impacts benefits and retirement for regular and CII employees

12. HRSCTerminations • Leave payout - You should be reconciling leave payouts within 2 pay periods after the date of termination: • Trend is developing to miss this and to have to rehire the former employee – causes issues and a lot of unnecessary work. • Rescind resignation – once a termination has been processed in eUMB, an employee will have to be rehired if they rescind their resignation before they come off payroll. We can only make a change in the system if the action is future dated for the next processing cycle or later.

13. HRSCTerminations vs. transfers • These are the policies on annual leave for regular exempt and non-exempt employees that state that annual leave should be transferred when an employee accepts another position within the campus or USM. • http://www.usmd.edu/regents/bylaws/SectionVII/VII701.html • http://www.usmd.edu/regents/bylaws/SectionVII/VII700.html • We have recently received requests for employees to be “terminated” and “rehired” in the same pay cycle so that they can receive a leave payout. The campus does not support this action. It would not sustain a central payroll audit. • A new guideline - If an employee accepts a position with another school/department and wants to be paid for their accumulated annual and holiday leave, they should resign and remain off payroll for 2 processing cycles before being rehired in the new department. • This will allow complete reconciliation of leave payout, which is an ongoing problem. • The employee will need to be aware that their benefits and retirement will be interrupted, and they will need to reenroll.

14. HRSCChanges to processing schedule • Starting in June, the cutoff time to drop off actions will be Noon instead of 4pm. • This will allow additional time needed to process last minute paperwork. • When holidays impact the Central Payroll schedule, the cutoff day will move to Thursday. Please see http://www.hr.umaryland.edu/servicecenter/eumbforms.htm to access the HRSC processing schedule.

15. Leave accrualSenate Bill 177 • Effective October 1, 2008, the maximum amount of annual leave that can be carried over from 1 year to the next will increase from 400 hours (50 days) to 600 hours (75 days). • Any accumulated unused leave in excess of 600 hours shall be forfeited at the beginning of the first full pay period of the next calendar year. • Upon termination, employees will only be paid for 400 annual leave hours and any additional annual leave hours that were accrued in that calendar year. • Additional information will be coming on how to manage this change in the fall.

16. Background Checks • Effective July 1, 2008 • Background checks – Mandatory for all new regular and contingent Category II Staff & Faculty • Inquiries will be made post decision - pre offer • Schools/Departments will cover the cost • Currently working with procurement to identify a vendor • Requested turnaround time from the vendor - 24 to 48 hours

17. Background Checks • Data that will be included: • 7 year criminal history • Education/Licensing credentials • 7 year employment verification • Miscellaneous services if required by law (i.e. driving record) • The Referral/Selection form has been updated for the new process – will be working with the schools to create a process for faculty

18. Faculty Job Postings • Trend is for academic institutions to post all jobs on their career website • UMB will begin posting faculty positions on the HR website in FY09 • Upgrading our applicant tracking system which will allow more access to Schools and Departments for staff positions

19. Compensation

20. Compensation • Review of critical dates • Review of guidelines • eUMB processing: Important changes for FY09 • Specific instructions for each employee class

21. CRITICAL DATES

22. Guidelines • COLA is 2% • Merit is 2.5% • Exempt salary structure updated • Over max = one-time payment • All regular exempt employees must earn $29,149 at 100% FTE • Leap year adjustments in FY09 • New Minimum wage effective 7/24/08

23. New Minimum Wage • $6.55 Effective 7/24/08 • $7.25 Effective 7/24/09 Submit EA Forms to HRSC

24. Exempt Structure • Revised July 1, 2008 • Market adjustment to ranges • Below minimum – Effective pay-period beginning May 25th, HR will adjust the salaries for all exempt employees to the new minimum • Adjustment will appear on the 6/13/08 paycheck and updated salary will appear on the PITP

25. Payroll Increase Transaction Page (PITP) The PITP is: • For processing COLA, Merit and faculty pay changes • Used for regular employees only • Only for processing the above select actions that are effective July 1, 2008

26. PITP Employee Classes • Regular Non-Exempt (Code 20) • Regular Exempt (Code 33) • Regular Faculty – (01,02,03,15) • Post-docs (19)

27. PITP Processing FY09 • COLA is 2% for all regular employees • Merit to be input as a flat dollar amount • You can enter and approve by Employee Class

28. Processing increases for Regular employees using eUMB PITP

29. Non-Exempt(Code 20) Sequence of Adjustments: • Leap Year Calculation • COLA (2% Pre-loaded; Cannot be changed by users) • Merit (2.5% Pre-loaded; Cannot be changed by users) *** New for FY/09 *** 4. Promotions/other adjustments effective July 1st (done by dept. on an EA Form)

30. Non-Exempt (Code 20)Continued • Reduce salaries to the max (HR) • Over max: initiate one time payment (HR and Payroll) • Back out merit for those employees who were rated Below Standards or Unsatisfactory (HR)

31. Non-Exempt(Code 20):What Users will do • Verify your list of over-max and below standards/unsatisfactory employees now • Confirm COLA and Merit are correct in the PITP and contact Compensation if there are discrepancies • Validate final salary amounts

32. Original Hire Six month anniversary after 7/1/08 UMB Regular employee for less than 6 months Receives COLA NOT eligible for Merit Receives 2.5% probation increase at the end of 6 months Status Change Regardless of status change date Existing UMB regular employee who gets promoted, transferred, etc. Receives COLA Receives Merit Also receives 2.5% after probation, if competitive promotion Non-Exempt (Code 20): Probation

33. Exempt(Code 33) Sequence of Adjustments: 1. Adjustment to Minimum as of 5/25/08 (HR) 2. Leap Year Calculation Adjustment 3. COLA (2%) 4. Merit (2.5% Pool Average) 5. Promotions/other adjustments effective July 1st (done on EA Form)

34. AllowancesDefined by Comp Rate Codes • Will appear on report, but not on PITP (Reminder: Run report to confirm data) • Allowances for Faculty and Staff are not COLA/Merit eligible

35. Exempt (Code 33): What Users will do • Merit: Enter amount based on department decisions about merit pool up to the maximum of the range • Exception form: required for total increase greater than 15%. • Must be approved by Dean or Vice President & President

36. Exempt (Code 33): FY09 Exempt Merit One Time Pay • One time payments for exempt employees over maximum will continue this year • Approvers can query for salaries over maximum and then get authorization from Dean or VP to make 1-time payments; due to the Dean or VP’s Office by June 2nd • Use FY09 Exempt Merit One Time Pay Form to process (Payroll Website)

37. Exempt (Code 33): Over Max • Over max: run query and department decides on the one time payment. Dean or VP’s office reviews and approves • Name of query in eUMB: UMB_HR_PRJ_MER_XCEDE_MAX

38. Faculty (Codes 01,02,03,15,19) Sequence of Adjustments: • Leap Year Calculation • COLA (2%) • Merit (2.5% Pool Average) • Fiscal Year Changes (FYC): FTE/Funding changes Note: Changes to title, rank, or tenure managed by school’s current process or SOM/Dean’s office

39. Faculty: What Users will do • COLA: Verify 2% • Merit: enter amount based on department decisions about merit pool • Exception form: required for total increase greater than 15% (Dean or Vice President’s & President’s approvals are required) • NRSA Post-docs: notify Compensation of NRSA status by June 2nd

40. Faculty: What users will docontinued • Fiscal Year Change (FYC): Enter change as needed (Must enter the amount and standard hours) • After increases have been processed forfiscalyearchangesonly (FYC): • Generate Employee Pre-Print for each Faculty member who had FYC • Sign Off (get signatures) • Send to HRSC by July 31st to be filed

41. Faculty: What HR will do • COLA: pre-load 2%- not overridable • NRSA post-docs: we will validate NRSA status and back out COLA & Merit as needed • Carolyn Footman (6-1850) is contact for faculty policy issues • SOM: contact Dean’s Office for assistance on TAS (Total Approved Salary) and FTE changes

42. Compensation Contacts • Patti Ilowite • Ext. 6-2616 • pilowite@af.umaryland.edu • Pam Palmer • Ext. 6-6339 • ppalmer@af.umaryland.edu • Thelma Smith • Ext. 6-6338 • thsmith@af.umaryland.edu

43. Human ResourcesService Center(HRSC)

44. HRSC Processing • Department or salary changes received in HRSC after 6/6/08 will be entered in eUMB starting 7/7/08 for Regular employees • New hire paperwork and terminations will be processed throughout the COLA/Merit processing period • For employees not on the PITP; HRSC will continue to process as usual • Final data in the PITP will include all staff information entered by HRSC through 6/14/08

45. HRSC ProcessingContinued • Actions effective before 7/1/08 that are received in HRSC after June 6th cutoff, will require two(2) EA Forms. • 1st EAF with effective date before 7/1/08 should be with salary prior to COLA/Merit • 2nd EAF should have an effective date of 7/1/08 and include COLA/Merit salary. In the remarks section of the EAF, record COLA and Merit salary separately

46. HRSC Processing Example Exempt or Non-Exempt employee receives a promotion or re-evaluation resulting in an 6% increase effective 6/25/08. Dept submits EAF after 6/6/08. • Since the EAF was submitted after June 6th cut-off date, two EAF’s are required. These actions will be entered in e-umb manually by HRSC the week of July 7th. • 1st EAF indicating 6% increase on base salary before COLA/Merit • 2nd EAF indicating COLA/Merit on new salary listed separately • 6/25 Salary + Cola = Salary • Cola Salary + Merit = Final Salary

47. FY09 Actions Other Than COLA/Merit Effective on or After 7/1/08 • For employees on the PITP: Actions will be processed after July 7th and should incorporate post COLA/Merit salary

48. Payroll Communication to Employees Paycheck Results

49. Communication to Employees • E-mail to Payroll Reps - please customize • Payroll Reps must e-mail or print memo for all eligible employees for 6/16 • Please answer employee questions in department – do not have them call FS-Payroll or HRSC

50. Paycheck Results – 09-01for PITP Employees • Period: 6/22 – 7/5 • Paydate: 7/11 • No Changes to annual, bi-weekly gross is slightly different due to the change to non leap year • New benefit deduction amounts as a result of open enrollment • For Faculty: no Teachers retirement