SUBJECT:  Approved Changes Affecting the Incentive Award Program

Last month you were notified of proposed changes to the Incentive Award Program. This notice is to advise you that the proposed changes have been approved and are being implemented for non-exclusively represented staff employees effective October 1, 2000. In addition to the regular 2000-01 salary increase plan and the additional 1% - 2% salary increases that were previously announced, this year UC is taking a further step to improve the basic staff salary program by adding 0.8% to the base salaries of staff employees. The source of funding for these salary increases will be a portion of the funds that have previously been used for the Incentive Award Program.

The Incentive Award Program has provided annual funding for departments to pay non-base building cash awards to deserving staff employees. UC believes that, given current market conditions and ongoing compensation concerns, these funds will have more value to employees if they are used to increase base salaries. Therefore, this year eligible staff employees will receive an additional 0.8% base-building salary increase. The following employees are not eligible for the 0.8% salary increase:

- employees in contract appointments,
- employees in the Senior Management Group,
- employees in per diem appointments, and
- students employed in casual-restricted positions.

This additional 0.8% increase will be applied following the merit increase for those who are merit-eligible. It is anticipated that the increases will be reflected in the November 1 checks for employees paid monthly and the November 8 checks for employees paid biweekly.

The remainder of the Incentive Award Program funding (0.5%) will continue to be used for incentive awards. Subject to Vice Chancellor guidelines, this fund pool can be enhanced through self-funding. The 2000-2001 Incentive Award Program guidelines and budgets will be distributed in the near future.

The staff salary program for employees represented by unions, including distribution of Incentive Award Program funds, is subject to the collective bargaining process. Accordingly, incentive award allocations for exclusively-represented employees should be held in abeyance, pending the outcome of negotiations with respective unions.

Key Administrators are requested to circulate this notice to affected employees in their departments. Campus employees with questions regarding this change may contact Judy Johnson, Compensation Manager, via electronic mail at jjohnson@ucsd.edu , or via telephone (858) 534-0986. UCSD Healthcare employees may submit their questions to Ann Skinner, Director, Healthcare Human Resources, via electronic mail at askinner@ucsd.edu or SYSM Code: AMR1 or by phone at (619) 220-5089.

                                                Rogers Davis
                                                Assistant Vice Chancellor
                                                Human Resources