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Statement of Policy

Major units within Purdue University that have available funds may provide non-recurring special merit pay to their faculty and staff to supplement the traditional recurring merit pay adjustments made each fiscal year. Special merit pay provides additional flexibility for rewarding outstanding faculty and staff.

Reason for Policy

Purdue University has adopted this policy on non-recurring special merit pay to provide flexibility in the delivery of compensation and to assist major units in meeting the University’s strategic plan objectives through financial recognition of extraordinary faculty and staff.

Who Should Know This Policy

Related Documents

Procedures for Administering Special Merit Pay

Human Resource Services is responsible for the procedures that address the implementation and ongoing management of the Special Merit Pay Policy.

Recommendation Form for Special Merit Pay

Executive officers may stipulate the use of this form within their areas.

Contacts

Table of Contents

Statement of Policy

Reason for Policy

Who Should Know This Policy

Related Documents

Contacts

Table of Contents

Definitions

Exclusions

Procedures

Special Situations

History

Definitions

Exclusions

The Special Merit Pay Policy does not apply to:

• Student employees
• Graduate staff
• Temporary staff
• Visiting faculty
• Limited term lecturers
• Postdoctoral appointments
• Regular faculty and staff employed less than one year
• Employees who have a specific employment contract with the University that links additional compensation to their performance

Procedures

Each major unit wishing to award special merit pay will establish its own criteria for making the awards. Criteria will promote performance that helps the unit meet strategic goals, business needs, or both. As a general guideline, special merit pay will be awarded for extraordinary performance and achievement. Funding will come from the unit’s resources; no central funding will be provided.

Using the process stipulated by their executive officer, each dean, director, or vice president will submit the names of faculty and staff to whom they wish to award special merit pay. Executive officers will then submit their recommendations to the president for consideration and approval.

Schedule

Awards of special merit pay will be made once annually. The president or the president’s designee will define the payment date, which will be uniform for the entire University.

Amounts and Allocations

Excluding the reserve for unfilled positions, each major unit can utilize up to one percent of its budgeted salary base for each employee category for special merit pay. For purposes of this policy, the following three employee categories will be used:

• Tenured and tenure-track faculty, clinical/professional faculty, and research faculty
• Administrative/professional staff and continuing lecturers
• Clerical and service staff

Each category will include all eligible named individuals budgeted as of July 1 of each year, regardless of the source of funding. Each major unit can provide special merit pay to a maximum of 25 percent of its budgeted faculty and staff in each eligible employee category.

Special merit pay may be provided to tenured and tenure-track faculty; clinical/professional faculty; research faculty; regular clerical, service, administrative, and professional staff; and continuing lecturers who have been employed at the University for at least one year.

For tenured and tenure-track faculty, clinical/professional faculty, research faculty, exempt administrative and professional staff, and continuing lecturers, an award of special merit pay can range up to 10 percent of the employee’s current salary. For regular non-exempt employees, an award of special merit pay can range up to 10 percent of the employee’s total previous fiscal year earnings. Special merit pay awards may not exceed $15,000 for any faculty or staff recipient.

Control totals for special merit pay cannot be spread across employee categories. For example, amounts available to reward clerical and service staff cannot be allocated for faculty.

University’s Sole Discretion

Special merit pay is not an entitlement. Awards of special merit pay are made based on extraordinary performance and the availability of funds. Awarding of special merit pay and the amount of any award are determined at the sole discretion of the University. Such determinations will not be eligible for grievance under any of the University’s formal grievance processes for faculty or staff.

Other Policy Provisions

1. Special merit pay cannot be charged to federal funds.
2. Special merit pay may not be awarded to Purdue employees for an internal transfer.
3. Special merit payments are separate from base salary. Special merit pay will not be considered when calculating benefits such as TIAA-CREF, PERF, or other salary-related fringe benefits.
4. Special merit payments will be taxable income to recipients and subject to all appropriate tax withholdings.

Special Situations

Any deviation from this Special Merit Pay Policy requires approval by the president or the president’s designee.

History

This document is the first to formalize a policy for non-recurring special merit pay to faculty and staff.