UConn-AAUP



New ProposalCompensationSalary decompression adjustments (SDAs)To address accumulated salary equity issues stemming from the unprecedented impact of facing six “zero raise” years for UConn AAUP faculty since 2008, the parties agree to provide negatively affected employees individual decompression salary adjustments (SDAs) subject to the following general principles:SDAs amounts are provided to certain individual BU members based on: the number of contractual “zero raise” years the BU member was subject to between 2009 and 2018, i.e., maximum of 6 (2009, 2011, 2012, 2016, 2017, 2018)the base 9-month salary of the BU member in each particular “zero raise” year experiencedthe position and rank of the BU members in each particular “zero raise” year.individual BU member’s base 9-month salary progression between 2008 and 2020To qualify for an increment, the individual would need to have employed in a manner that would have enabled them to receive contractual salary increases per contract rules when increases are paid. For example, to be eligible for an SDA based on the 2009 “zero raise,” an individual must have met employment requirements for a pay increase if 2009 had provided a mandatory raiseIndividual SDAs will be added to BU members base salary in equal increments over the first 3 years of this [the new] contract. Each increment will be provided when contractual salary increases go into effect (August 23?)AY 2022-3 SDA*.34AY 2023-4SDA*.33AY 2024-5SDA*.33Full SDA amounts shall have been added at start of AY 2025-5. The University administration is authorized to accelerate an individual payment schedule at its discretion (i.e., it may choose to provide certain individuals their full SDA in 2022-3, or 50%*SDA in 2022, 25%*SDA in 2023, and 25%*SDA in 2024, etc.).SDA amounts are fully determined by past events, and thus may not prejudice decisions about other current and salary increases. For example, an individual’s SDAs amount to be paid in 2023 should have no bearing on determining an individual’s “merit pay” in the normal 2023 merit process (assuming there is one). Generally speaking, the SDA is the sum of 3% of individuals base 9-month salary during each “zero year.” The 3% increment is, however, subject to certain maxima in each year (lesser of median in rank/position in the freeze year or $3000) and the sum of annual SDAs is capped ($13,500). The SDA is potentially further limited to the individuals 2008-2020 “salary gap,” which is the negative difference between 2020 base salary and a constant annual increase of 4.6% since the hire date. (The principle is that if an individual received salary increases since hire than are in excess of 4.6% annually, it is “as if” they suffered no loss from zero years.)Each BU member will be provided access to their full SDA computation at least 30 days prior to the payment in the first increment in August 2022. They have the right to appeal the amount. SDA amounts are not subject to change once these initial determinations have been made unless there is malfeasance in their determination.Individuals who separate from service prior to the payment of any SDA increments lose their right to unpaid increments. (Temporary separation does not result in such a loss.) For example, if someone retires before AY 2024-25, they would not received their last schedule SDA increment.The specific provisions for computing each individual BU member’s decompression salary adjustment are complex and specified in Appendix X.The SDA has positive features with respect to gender pay equity. The SDAs close on average 47% of the individual “salary gap due to past freezes” among women and 40% of that gap among men. Closing more of the gap women’s pay gap should improve their relative pay over time, particularly among cohorts with less seniority currently. The SDA also narrows gender pay gaps slightly. The SDA is on average 5.06% for women and 4.96% for men. But among the members who have experienced 5 freezes or fewer, the equity enhancement is greater: women receive about 1.74% v 1.39% for men. Estimated current payroll savings from past freezes (salary gap for existing faculty in 2020 + 51% fringe):~$45.5 million Based on Payroll for 2020 of ~$324 million Estimated Direct cost: Assuming that there are not retirements between now and 2023 by individuals owed SDAs.$8.3 million+ Fringe cost @ 51% 4.2 million$12.5 millionThe long-term costs rise above the original costs due to compounding. However, the offsets from attrition rate are likely to exceed the drag from compounding (more than 4% p.a. of the DSA amounts fall off)…so cost peaks at about 2.2% of payroll in 2023 and are close to 1% of payroll in twelve years.Appendix X. Computation details of the Salary Decompression Adjustment amount Basic eligibilityPrinciple: 1. Employed at university in a full time faculty/BU capacity in Fall 2020 2. Employed during a period in which a contractual raise would traditionally be paid. (If on a leave that would normally be provided a raise then it you are elibible for the year)3. Have a salary in 2020 that has been negatively affected by freezes. "Negatively affected" means that the individuals base salary in 2020 is less than it would have been had you received a 4.6% raise in each year since a) 2008 if hired in or before 2008, or b) since year of hire after 2008Concretely, this means that if you were hired in 2008 or earlier, and your 2020 base salary was more than 1.72* your 2008 base salary (and less contractual increases in promotion for TT faculty), then you would have averaged more than a 4.6% raise each year of employment.For those hired in each subsequent year T, the 2020 salary needs to be less than K * your salary at hire* T K2009 1.64 * 2010 1.57 * 2011 1.50 * 2012 1.43 * 2013 1.37 * 2014 1.31 * 2015 1.25*2016 1.20*2017 1.14 Hires in 2018 and 2019 did not miss a raise as their were raises in 2019 and 2020, so they do not have a gap due to a freezeWe create individual "salary gaps" which serves as a maximum salary decompression award (SDA). The gap is the starting salary (or 2008 salary is the start date if earlier) times the multiplier above minus their 2020 salary minus constractual increases for promotions (e.g., from assistant prof to associate professor)Example: AS is hired in 2001. His salary in 2008 was $87,000, and his salary in 2020 is $115,000. DUring this peiod AS received promotion to associate and to full professor, getting $1000 and $1400 in contractual promotion awards. Based on his hire date, his "salary gap" is $37,040 (87,000*1.72 - (115,000-1000-1400))Example 2: DF was hired in 2013 at a salary of $85,000. Her 2020 salary is $110,000. She received a promotion to associate in this period which increased her salary by $2500. (The contract provided for a higher promotion increment than was historically the case). Her "salary gap" is 85,000*1.37-(110,000-2500) = $8950Example 3: CC was hired in 2001 and had a salary in 2008 of $65,000. Her 2020 salary is $120,000. CC has no exta awrds for promotion in this period. Her "salary gap" is $0, becasue her 2020 salary is more than 1.72 times her 2008 salary of $65,000. (In other words, on average during this period she averaged more than 4.6% raises in each year.) Example 4: GG was hired in 2015 with a salary of $90,000. Their 2020 salary is $110,000, and they received no promotional increases since hire. Their total "salary gap" is 90,000*1.28-110,000= $5000 "Salary gaps" are simply a ceiling value for SDAs. Actual SDAs are almost always less. Generally, it is substantially LESS than conventional cost of living increases that are in collective bargaining agreements agreed to during the last 35 years. In other words, even if one assumes that the DSAs go to people who would have received no MERIT INCREASE in the "freeze year", our salary adjustments will be less than the "mandatory" raise percentages. In most cases, the raise is considerably less, because we impose maxima in various places.The logic behind the salary gap is that it attempts to take into consideration the fact that many people with very large pay increases over the last decade benefited from institutional efforts to address compression.(Compared with the counterfactual of having paid raises in zero years, the SDAs do not contain "rate compounding". For example, while a 3 % increment added to a 2010 salary base would. had it been paid at the time, become the base on which all subsequnet raises were calculated, our SDAs are computed for the year in question, and added to current (e.g. 2020) base pay. 9Example, Individual A with salary of 100 in 2017 got no raise in 2018, and a 4% raise in both 2019 and 2020. Their actual 2020 salary is thus 108.16 (100*1*1.04*1.04). The SDA would be 3.00 (100 * 3%), and not 3.24 (100*.03*1.04*1.04). The absence of rate compounding makes quite a large difference for the roughly 50% of BU members who have freeze years back to 2009.*******Step 2: Compute the decompression amount for each year in which an individual endured a freeze. We use 3.0% of freeze year base salary as the normative annual compensation amount. The amount for each year is capped by the lesser of: a) the median salary in the individual’s position and rank (except for full professors and head coaches, where the cap is set at 40% of median); or b) $3000. $3000 is approximately the 60th percentile of the entire bargaining unit's full-time salary during the last freeze year (2018). The 3% baseline percentage is the "adequate performance" raise in most contracts. Adding the maxima position and overall makes these amount in our plan somewhat more "progressive."*******Step 3: add the annual decompression amounts determined in step 2. Individuals only get a increment if they were employed the year before the freeze, so only continuing employees can get a decompression amount for that year.****Step 4: The sum in Step 3 is reduced to the lesser of:a) the "salary gap" (See step 1); b) $13,500 The global maximum $13,500 is 4.5 times the maximum annual ($3000). This does tend to penalize those with long service and higher historical salaries, but this helps to reduce the cost of the plan. These individuals are still receiving a SDA of $13,500. *****Step 5: For individuals whose base salary is over the 85th percentile for 2020), the individual SDA is reduced from the amount in Step 4 by an increasing fraction between 0 (for a base salary of 150k) to 50% (for a base salary above the 95th percentile). This is simply an effort to limit the increases to very high salaries and overall cost. ................
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