Costing Policy & Analysis

Research Administration Office

University of California

No. 96-08
May 1, 1996

CONTRACT AND GRANT OFFICERS (CAMPUS AND LAB)
VICE CHANCELLORS--ADMINISTRATION

Subject: Revised Salary Range Projections

Below is an updated table showing projected salary increases for use in proposal budgets, for salary payments beginning July 1, 1996. For faculty and other academic employees, separately budget for range adjustments and then add merit increases where applicable. For non-academic personnel, budget an average increase with no separate calculations for cost-of-living and merit.

7/1/96 & thereafter10/1/96 & thereafter
Faculty
Range adjustment5%
Merit increase (normally every 2-3 years)5% if applicable
Other Academic
Range adjustment2%
Merit increase (normally every 2-3 years)5% if applicable
Non-Academic
Pool increase4%

Note that the "Academic" category has been split into "Faculty" and "Other Academic" categories in accordance with recent changes in academic salary scales. "Other Academic" titles include professional researchers, research assistants, postgraduate researchers, physical education instructors, acting instructors, lecturers other than those with security of employment, visiting professors, visiting astronomers, visiting agronomers, librarians, specialists, and those with "recalled" in their titles. This is not an exhaustive list but should include virtually any academic other than "faculty" who is likely to be employed under an extramural agreement.

This table has been simplified to reflect the implementation, effective July 1, 1996, of a new University-wide human resources initiative. During FY 1997, it is expected that the current compensation of steps within a range for staff employees will be eliminated, as has already occurred for A&PS, MAP, and Executive classifications. Anticipating a merit-based compensation structure, a merit pool average increase can be used to budget for future salary increases. Thus, as a general rule, non-academic employees should be budgeted using a single escalating factor, particularly for "to be named" employees. However, the campus may, at its option, use a more exact method of budgeting for employees who they know will be receiving step increases.

The table reflects the most recent information we have on range adjustments and merit/pool increases for FY 1996-97 and beyond. The table does not include provisions for salary incentive payments to eligible employees. The employee incentive award program is being implemented via a new procedure beginning July 1, 1996, as follows:

All funds supporting regular salary payments to non-academic employees eligible for incentive awards will be assessed a standard amount, currently projected at 1.3%. The assessment will be charged to a benefit expense object code. When incentive award payments are paid to individual employees, the payment will be made as taxable salary from the sponsored project account/fund; funds sufficient to cover the incentive award salary and associated fringe benefits will be transferred from the Incentive Award Assessment Pool to the sponsored project account/fund. Thus, beginning FY 1997, the incentive award program portion of the salary will be budgeted and charged to each fund source as a fringe benefit and, as such, has been incorporated into the companion to this Memo on revised employee benefit projections.

A copy of this Contract and Grant Memo has been transmitted to the Division of Cost Allocation, HHS Region IX, to satisfy the requirement that the University notify its cognizant agency of changes in the University's salary projections.

Refer: Barbara Yoder (510) 987-9848
barbara.yoder@ucop.edu (e-mail)

Subject Index: 02, 07, 10
Organization Index: U-115

David F. Mears
Director
Research Administration Office

cc:
Vice ChancellorsResearch
Accounting Officers
Internal Audit Managers
David Low/DHHS Audit