The University of Texas Health Science Center at Houston (UTHSC-H) administers the compensation program for classified employees in accordance with state and federal laws and regulations and will provide equal opportunity in all employment related activities without regard for race, color, religion, sex, sexual orientation, national origin, age, disability, or veteran status (refer to 2.18 Equal Employment Opportunity). Changes in compensation, whether increases or decreases, must be applied within the policies and practices of the UTHSC-H as described below. Human Resources will review all salary actions to ensure compliance with equal opportunity criteria.
Each classified employee's job performance (refer to 5.10 Performance Evaluation) must be reviewed annually, and each employee must be counseled on the results of his/her review regardless of whether or not he/she is being awarded an increase. An annual review schedule has been established by the UTHSC-H operating units. Performance review discussions should focus on the employee's performance and not compensation. It is the responsibility of each operating unit to ensure that all supervisory employees are trained in the review process for classified employees in that unit.
The maximum percentage amount for all types of increases will be determined and approved by Human Resources on an annual basis and will be included in annual budget instructions.
The effective date of all Personnel Action changes is the first day of each pay period. This includes transfers within a department, promotions, and an assignment of an already active employee to a second appointment within the university. For further details please see the guidelines on the System Data Resources (SDR) website.
The following paragraphs describe various types of compensation changes that affect classified employees and/or positions. These compensation changes are categorized as to their effect on an employee's base pay:
Merit Increase Added to Base Pay A merit increase is a salary change warranted by meritorious performance. Meritorious job performance is defined as a consistently high level of job performance over a sustained period of time or the successful completion of an assigned project that had a significant impact on the department or the university.
Progression Through Salary Range This is an increase to an employee's base pay within the same job/same salary range where a merit or promotion is not the correct action. It can be awarded when an employee either gains new skills/ competencies in his/her current position; or, assumes more responsibilities within the scope of his/ her current job.
General Increase This is an across-the-board salary increase mandated by the Texas State Legislature during its biennial sessions to raise the general level of salaries of state employees.
Salary Adjustment The salary adjustment action is used to address salary actions, such as a pay change due to internal equity, that are not defined by any other pay action policy. All salary adjustment actions require written justification and require review and approval from Human Resources prior to processing.
Promotion A promotion is when an employee moves to a position that has a greater salary range than the one currently occupied.
Example: An employee who is eligible for $1,031 BRP applies for a job as a clerk with a minimum salary range of $20,000. The employee must be offered at least $21,031, which is $20,000 plus $1,031 BRP. The total percentage amount of the increase to the new salary minimum plus BRP may exceed the annual budget guidance provided by Human Resources. The comments section of the Personnel Action (PA) Request Form must include the dollar amount of the BRP (example BRP $1,031).
Downgrade/Demotion A downgrade or a demotion occurs when an employee moves to a position that has a lower salary range.
Lateral Transfer A lateral transfer is a transfer from one position to another position that has the same salary range. Consequently, there is no change is salary. Employees are subject to a 120-day probationary period following a lateral transfer to another department (see 5.02 Probationary Period).
Lump Sum Merit A lump sum merit is a one-time award, not added to base pay, that can be awarded to an individual for meritorious job performance. Meritorious job performance is defined as either consistently high level of job performance over a sustained period of time; or successful completion of an assigned project that had a significant positive impact on the department or the university.
Administrative Pay Supplement A temporary pay supplement paid for specific situations when an employee assumes substantial, additional responsibilities on an interim basis for an extended period of time, not to exceed one year.
The criteria that follow apply to either type of merit award; all criteria must be met in order for such actions to be processed:
Example: A manager wishes to award an outstanding employee with an 8 percent merit increase, however the employee's base pay is at $38,500 and the salary range maximum is $40,000. The full 8 percent merit increase would push the employee's pay over the salary range maximum. The employee can be awarded a regular merit increase of 3.9 percent added to base pay bringing the employee's base pay to the range maximum of $40,000 and the additional 4.1 percent or $1,640 is awarded as a lump sum merit.
Occasionally, exceptions to the policy described above may be appropriate. Exceptions to policy require documentation with justification. In those cases where an exception to policy may be appropriate, the designated budgeting official must document and justify the exception. The request is then sent with the Personnel Action (PA) request form to the System Data Resources (SDR) Team to obtain the approval of Human Resources prior to final processing.
According to the State Legislature and the Office of General Counsel at UT System, Benefits Replacement Pay must be subtracted from the employee's annual salary to determine if the employee's salary is at the minimum of the salary range. In 1995 the 74th State Legislature enacted into law SB102, which eliminated the "state paid FICA" benefit and in lieu of that benefit provided a salary supplement called "Benefits Replacement Pay" to eligible employees. BRP was rolled into base pay in 1997.
Section 659.121 of the Government Code provides a definition of an "eligible state employee" for BRP as an individual who (1) was employed by a state agency on 8/31/95 and (2) was eligible on 8/31/95 for state payment of the employee tax under Government Code Section 606.064 as it then existed. In addition, an individual must not have a break-in-state-service of twelve months or more, since 8/31/95.
Once approved by the designated budgetary official within an operating unit or department, a salary action can be processed. The department completes the PA request form and submits the form to the SDR team for processing. Depending upon circumstances such as those described in several paragraphs above, Human Resources may need to review and approve the salary action prior to final processing.
Updated 01/05