Furlough Salary Reduction

1
Furlough/Salary Reduction

• Implementation Guidelines for Administrators

2
Workshop Presenters

• Cindy Ponce, Academic Personnel
• Coni Edick, Human Resources

3
Please Note!!

• Information presented here is based on what we
  know at this time
• Details are emerging on a daily basis
• Watch for campus D-list and PPS listserv memos
• Check our website for all updates
• http//hr.ucsb.edu/budget/Furlough-Salary-Reductio
  n-Plan.php

4
Workshop Topics

• Plan Description
• Included Excluded Employees
• Banding Determining amount of furlough salary
  reduction
• PPS Implementation System
• PPS Implementation Departments
• Furlough Exchange Program (FEP)
• Furlough Usage Reporting
• Resources Contacts

5
Plan Description

• Creates salary savings by reducing an employees
  pay with a corresponding number of furlough days
  off
• 12-month period
• September 1, 2009 August 31, 2010
• Pay reductions range from 4 to 10
• Total furlough days range from 7 to 26
• Based on salary and program type
• Employees who earn more absorb a larger pay cut
  than those who earn less

6
Who is included?

• All full- and part-time UC employees, including,
  but not limited to
• Non-represented Staff (99)
• Career
• Limited
• Per Diem
• Academic
• Academic Senate Faculty
• Non-Senate Academic

7
Who is EXCLUDED?

• Employees whose pay is entirely funded by
  research extramural funds
• Student employees
• Postdoctoral scholars
• Visa holders (H-1B, H-2, H-3 E-3)
• Employees on START program

8
Joint Appointments

• Furlough/Reduction will be prorated based on the
  included title/fund source
• Academic Coordinator / Lecturer
• SAO IV / Lecturer

9
Exclusion by funding

• Extramural funds (EMF) are excluded from the cuts
• Employees funded 100 on EMF will not participate
  in the program
• Employees partially funded on EMF will receive a
  cut only on the non-EMF funded portion of their
  salary and will receive furlough hours in
  proportion to the cut they receive

10
Excluded funds
Funds added to table 9/15/2009
11
Visa Holders

• Visa input in PPS
• Update EALN screen when status changes
• Citizenship code
• Visa Type code
• Work permit end date
• Note A change in or out of H status will change
  participation in furlough program

12
START Employees

• START reduction must be equal to or greater than
  salary band reduction
• START program ends 6/30/10
• If/when START participation ends, employee needs
  to be placed on appropriate furlough reduction
• If furlough employee begins START, end furlough
  dist line and add new START dist line

13
Contract Employees

• Contracts should include conditions of
  furlough/salary reduction plan
• New Contracts
• Contracts to be renewed or renegotiated
• Existing Contracts (should be amended)
• Exceptions
• If employee is in an exempted category
• If employees participation is precluded by law
• Departments with Contract employees have been
  contacted by HR
• Melinda Crawford, HR-Employment, x5781

14
Union-Represented Employees

• Participation in furlough/salary reduction plan
  dependent on collective bargaining

15
Determining furlough/reduction

• Salary reductions and furlough accruals are based
  on a sliding scale of 7 salary bands
• Banding is based on an employees January 2009
  Next Year Medical Contribution Base (MCB)
• Monthly Covered Compensation Rate x 12
• Hourly Covered Compensation Rate x 2088
• Non-Faculty Academics 9/9 Monthly Covered
  Compensation Rate x .75
• Rounded UP to next 1000

16
Determining furlough/reduction

• The MCB does not change during the year,
  therefore the employees furlough band will not
  change either, regardless of any salary changes
• In PPS, the Next Year MCB is on the IINS screen
  (Nxt ContBase)

17
IINS Next Year MCB
18
Banding Academic Faculty
19
Banding Staff Non-Faculty Academics
20
Impact on Pay

• Included
• Regular pay (REG)
• Stipends (STP, SAS)
• Leaves with pay (e.g., sabbaticals)

21
Impact on Pay

• Excluded (not a complete list)
• Bonus/Incentive Pay
• Shift Differential
• Overtime
• Time on Call
• Summer Additional Compensation
• Severance
• BYA
• UNX
• Relocation/Housing Allowance (RIP, EHA, FHA)

22
PPS Implementation

• A central system program was used to update
  current population in PPS
• Week of September 7th
• Salary cut distribution lines were added in PPS,
  similar to the START program
• Effective date 9/1/09
• First paycheck to be affected 10/1/09
• Departments will be responsible for adding to or
  adjusting PPS after system update as appropriate
  for the duration of the program

23
PPS Implementation

• System program determined affected population and
  salary banding for each employee in population
• Added distribution with the reduction in
• Reduction is on the percentage of time, NOT the
  base rate
• DOS codes
• SRB Regular Reduction
• SRS Stipend Reduction

24
SRB (REG) Distribution
25
SRS (Stipend) Distribution
26
PPS EDB Implementation Dept

• Departments will need to manually add or delete a
  salary cut distribution line in PPS EDB after the
  one-time program is run
• Contract employees
• Adjustments
• New Hires
• Transfers
• Changes to or from START participation
• START must equal or exceed furlough cut
• Visa changes

27
PPS Implementation Dept

• Add or end furlough distribution (SRB, SRS)
• Use Action Code 43
• Use comments to describe action
• If new hire
• Process hire/rehire bundle first, update
• Obtain MCB-Nxt from IINS screen
• Enter SRB/SRS distribution line in EAPP

28
Determining SRB (REG pay)

• For Employees lt 100
• Distribution x Salary Reduction SRB
• Example Staff lt40K MCB _at_ 50
• Banding 4 reduction
• 50 x 4 2 SRB
• Furlough 5.5 days (based on 11 days _at_ 100)

29
Ex Staff lt40K MCB _at_ 50
30
Determining SRB (REG pay)

• For Employees with split funding
• Distribution x Salary Reduction SRB
• Example Staff 61K MCB with 75 state funded appt
  and 25 extramural appt
• Banding 7 reduction (based on MCB-Nxt)
• 75 x 7 0.0525 SRB (state-funded appt)
• Furlough 13.5 days (based on 18 days _at_ 100)

31
Determining SRS (stipend)

• Stipend x Salary Reduction SRS
• Example Staff lt40K MCB with 1000.00 stipend
• Banding 4
• 1000.00 x 4 40.00 SRS
• SRS will reduce 1000 stipend by 40

32
SRS (Stipend) Distribution
33
Furlough Exchange Program (FEP)

• Allows faculty to devote extra time to
  extramurally funded projects in exchange for
  furlough time
• 7/1/09 through 6/30/10 pay period
• All or nothing for percent time and duration
• Must be requested and input prior to September
  payroll cut-off

34
Furlough Exchange Program (FEP)

• Consult with Sponsored Projects if questions
  about fund sources
• Can not be applied to stipend payments
• Request form and other information available on
  the AP web site at http//ap.ucsb.edu/forms.and.i
  nformation/furlough.exchange.program/

35
FEP and Release to Grant

• FEP in PPS
• Remove existing SRB distribution
• Leave Prof. appointment at 100 distribution at
  the reduced percentage
• Add Researcher appointment and distribution with
  FEP dos code for period of 7/1/09-6/30/10 at the
  percentage time of the furlough percentage
• Existing or new release to grant
• Partial release will not be reduced on the grant
  funded portion but will be reduced on the
  Professorial remaining percentage

36
FEP PPS Example
37
FEP PPS Example
38
FEP PPS Example
39
Furlough Usage General

• Furlough accrual will be shown in PTO field on
  IHRS screen in PPS
• Accrual is in hours, not days
• Should be used as time is accrued
• Use for departmental mandated closures
• Note Non-furloughed employees take vacation,
  comp time or leave without pay during closures
• Supervisor approval required, similar to vacation
  usage
• Use it or lose it NO payout for unused hours at
  the end of program or at separation, whichever
  comes first

40
Furlough Usage Faculty

• Accrue on a monthly basis (pay period basis)
• Can take days only during the academic year not
  during the summer
• May not take instructional days as furlough
• May use the intersession dates as furlough

41
Furlough Usage Academic

• Recording leave usage for faculty
• All leave usage must be tracked and reported
• Department is office of record
• Sample time card available at http//ap.ucsb.edu/f
  orms.and.information/documents/
• Recording leave usage for non-faculty academics
• Use regular time sheet indicate time as furlough

42
Furlough Usage Academic

• Outside Professional Activities (APM 025)
• Allowed on furlough days
• In addition to the 39 day limit
• Must be included on annual report

43
Furlough Usage Staff

• Non-Exempt
• May be used in ¼ hour increments
• Exempt
• Must be used in full-day increments, whatever a
  full day is for that employee, based on schedule
• Example For a 50 exempt employee who works 4
  hours M-F, a furlough day needs to be 4 hours

44
Furlough Time Reporting

• Departments to keep track of furlough usage
• Non-exempt timecard
• Front Use F and number of hours used
• Back Insert column in monthly Vac/Sick/OT/Comp
  section
• Total usage at bottom
• Exempt timecard
• Insert column to left of Vac/Sick Leave section
• Total usage at bottom

45
Furlough Time Reporting

• Departments may report total furlough usage at
  end of program or separation, whichever comes
  first
• Use DOS code FUT to report furlough time taken
• Report in hours

46
Furlough Time Reporting

• Pay End 11/30/09 Check Date 12/01/09 Pay Cycle
  MO Page 1 of 1
• C
  
• Seq 00014 Tr LX Per End 113009 Pay Cy M
  Dst 22 E A T 2 D Ttl 0355
• LACFPS 8 661510 19900 1 Rate 08273.73
  AH A Prorate
• DOS Time H DOS FUT Hr
  008.00 DOS Hr WSP

• Reporting 8 hours of furlough taken (FUT)

47
Resources

• UCSB Furlough/Salary Reduction
• http//hr.ucsb.edu/budget/Furlough-Salary-Reductio
  n-Plan.php
• UCSB Budget news
• http//www.ucsb.edu/campus-topics/budget/
• UCOP QA for Administrators
• http//atyourservice.ucop.edu/administrators/emplo
  yment/furlough/index.html
• Furlough Exchange Program
• http//ap.ucsb.edu/forms.and.information/furlough.
  exchange.program/

48
UCSB Contacts

• Cynthia Cronk, Human Resources
• X8137, cynthia.cronk_at_hr.ucsb.edu
• Coni Edick, Human Resources PPS
• X3197, coni.edick_at_hr.ucsb.edu
• Cindy Ponce, Academic Personnel
• X8332, cindy.ponce_at_ap.ucsb.edu
• Stephanie Macaluso, Academic Personnel PPS
• X3445, stephanie.macaluso_at_ap.ucsb.edu
• Sona Baboolal, Accounting/Payroll
• X3259, sona.baboolal_at_accounting.ucsb.edu
• Jo Ann Stark, Accounting/Payroll
• X2219, joann.stark_at_accounting.ucsb.edu

49
Thank you for attending!