CAPA Lettter on 27 Pay Periods in FY11
November 4, 2009
To: Richard Pfutzenreuter, Vice President and Chief Financial Officer,
Carol Carrier, Vice President, Human Resources
From: CAPA Executive Committee
RE: FY11 27 pay periods
We write to provide feedback to you from the Council of Academic Professional & Administrators (CAPA) Executive Committee concerning the October 27, 2009 announcement regarding FY11 pay periods. We are disappointed that the appointment year for FY11 will be extended to 54 weeks (June 7, 2010 - June 19, 2011). This decision results in yearly appointment term salary being "recalculated." This means that employees' appointment term salaries will be distributed evenly over 27 pay periods instead of 26 pay periods. We estimate that this "recalculation" will impact approximately 91% of those in the P&A classifications (4,452) and 73% of those with faculty appointments (2,790). These figures include only those with A or BJ appointments in both employment categories and do not address research assistants or professionals in training.
Your announcement stated:
"Because you will receive one more paycheck than you would in a typical year, the amount of each individual check will be smaller; however, over the appointment term, the total salary will be the same."
Contrary to this statement, the decision to "recalculate" salaries will adversely impact those to whom you addressed your announcement. The actual result of this "recalculation" is that each of these individuals' gross pay will be less, resulting in a reduction in salary equivalent to 3.7% during FY11. A spreadsheet illustrating this reduction is attached (Fiscal Year tab). We would also like to point out that the salaried staff identified will effectively be taking a 2% pay cut in calendar year 2010 and a 1.85% pay cut in calendar year 2011. This, too, is evident from the spreadsheet (Calendar Year tab).
On October 7, 2009, Mary Luther (Director, Compensation, Office of Human Resources) presented the University's Compensation Philosophy to the CAPA Benefits & Compensation Committee. One of the points during her presentation was "internal equity" for all employee groups. The plan you outlined is antithetical to the stated philosophy and, in fact, imposes an unfair hardship on those affected by thisdecision.
We are requesting a more comprehensive explanation of the decision process as well as information addressing how this decision reflects "internal equity". We have a responsibility to our constituents to represent them in issues such as this and would appreciate an opportunity to discuss this with you in the very near future. We look forward to meeting with you soon.
C: President Robert Bruininks
Kathryn Hanna, Chair, SCFA
Click here to download the Excel spreadsheet
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