SUBJECT:

Formal Review of Salary Procedures

Effective 7/1/96 the four personnel programs [Executive, Management and
Professional (MAP), Administrative and Professional (A&PS), and Staff] were
blended into a new single personnel program. Human Resources consulted
broadly with the campus on the new systemwide policies and local
implementing procedures which were proposed to accompany the new personnel
program. During the consultation referenced above, the local implementing
procedures for Staff Personnel Policy 30-Salary were not distributed
because the changes warranted a separate review. The proposed salary
procedures are now ready for formal review by the campus community.

The draft procedures treat all affected employees under the same set of
rules. The new procedures will eliminate the current complexity associated
with determining merit review dates and allow UCSD to simplify the salary
review process.

AFFECTED POPULATION
The proposed procedures would apply to non-exclusively represented
employees who were in MAP, A&PS, or Staff titles. Employees who have a
union election pending and exclusively-represented employees will continue
to be governed by their existing terms and conditions of employment.

For employees previously assigned to the MAP and A&PS programs, the draft
procedures largely represent a continuation of the status quo, so there is
limited impact for them. The affected population that would see the most
change includes all employees, previously covered by Staff Personnel
Policy, in classes where the salary range contains steps.

PROPOSED CHANGES
Specifically, proposed changes for employees subject to the new Staff
Personnel Policy, effective 7/1/96, include:

a)  setting new hire rates up to the midpoint of the range, subject to
availability of funds and internal equity considerations;

b)  granting upward reclassification/promotional increases ranging from
0 - 15%, subject to availability of funds and internal equity
considerations;

c)  granting equity increases as compensation for position-related skill
acquisition that represents more than normal job growth;

d)  providing stipends for temporary increases in responsibility lasting
15 consecutive working days or longer with a maximum duration of one year;

e)  eliminating steps for all ranges that currently have steps;

f)  eliminating six month increases;

g)  moving to a single annual review date with common merit eligibility
requirements for all;

h)  granting merit increases subject to an annual budget that combines
merit and range adjustment funding with all combined individual increases
(via merit, reclassification, promotion, and equity), not to exceed 25% in
any one fiscal year; and

i)  eliminating automatic rate increases when salary ranges are adjusted,
except as required to bring employees to the new range minimum.

Pursuant to this proposal, the same amount of money will be spent on the
same group of employees; however, the distribution methodology will be
different. Salary increases will be based on merit, increased
responsibility, skill acquisition, or equity considerations. For example,
if the UC approved budget included an allocated 2% range adjustment funding
and 2% merit pool, these funds would be combined to create a 4% pool to be
distributed based upon merit. Under this example, all range minimums and
maximums would advance by 2%. Therefore, those currently paid at the
maximum would be able to participate in the merit pool with up to 2% salary
growth potential.

This proposal allows us to advance an otherwise delayed merit timetable
whereby all employees regardless of merit eligibility dates will be
eligible for merit increase consideration on 10/1/96 so long as they are:
1) in a casual position without an ending date or have career status,
2) have completed probation (if applicable), and 3) are below the new
salary range maximum. Otherwise, Staff employees would continue to receive
their merit increases on a six-month delayed cycle. That is, employees
with merit eligibility dates of 7/1/96 would receive their increases on
1/1/97 whereas employees with merit eligibility dates of 1/1/97 would
receive their increases on 7/1/97.

In addition to the implementing procedure for salary (HR-S-1), which
applies to all employees covered by Staff Personnel Policies (except Senior
Managers), there is also an implementing procedure for payment of sea pay
(HR-S-2), which is applicable to sea-going personnel at Scripps Institution
of Oceanography and basically preserves current practices.

The systemwide Salary policy (SPP 30) and these draft procedures can be
viewed on the World Wide Web at:

http://www-hr.ucsd.edu/online/qwl/policies/index.html

Comments or questions regarding the proposed procedures should be directed
to Judy Johnson, Compensation Manager, at extension 40986 or via electronic
mail at jjohnson@ucsd.edu by Wednesday, July 31. Open forums to discuss the
proposed changes are scheduled from 12:00 - 1:00 p.m. on the following
dates:

   Wednesday, July 17    SIO, 4500 Hubbs Hall
   Monday, July 22       UCSD Medical Center, Main Auditorium
   Friday, July 26       Price Center, Ballroom A

Rogers Davis Assistant Vice Chancellor - Human Resources