Purdue announces compensation plan details

October 22, 2010

Purdue has released policy guidance for the award of merit increases and one-time special merit pay for faculty, administrative-professional staff and clerical and service staff. It will be the first merit raise for faculty and staff since July 1, 2008.

The Purdue Board of Trustees authorized the merit increases Oct. 15 after a review of university accomplishments and the overall system budget. Funds for the raises will come from internal cost savings, including efficiencies in information technology, purchasing and energy conservation.

The pool of funds available for merit-based salary increases, regardless of the source of funding, is 1.5 percent of payroll. A recurring allocation of 1.5 percent will be distributed to each college/school and major area based on the units’ general fund salary budgets for faculty, administrative-professional staff and continuing lecturers, clerical staff and service staff.

Unit administrators are expected to award increases to help retain key employees on the basis of performance during the period July 1, 2008, to Sept. 30, 2010, with approximately 10 percent of employees receiving merit increases significantly above the average.

Employees who have been hired or received a retention adjustment or bonus since Jan. 1, 2010, employees participating in the Early Retirement Incentive Program, graduate student staff, and postdoctoral employees are not eligible for merit-based salary increases.

President France A. Córdova; Al Diaz, executive vice president for business and finance, treasurer; Tim Sands, executive vice president for academic affairs and provost; and several other vice presidents and deans have withdrawn themselves from consideration for the increase.

Salary increases will be effective Dec. 1, 2010, for exempt staff and Nov. 22, 2010, for non-exempt staff.

The special merit pay will be a one-time payment for exceptional performance with funds coming from each campus’ budget. The West Lafayette campus has allocated $1 million; Purdue Calumet, $103,500; IPFW, $122,500; and Purdue North Central, $40,500. Eighty percent of the funds will be released to operating units and 20 percent will be awarded by the West Lafayette provost and the regional campus chancellors.

Units may award special merit pay from the 80 percent allocation in amounts of $500 or $1,000 to recognize employees making strategic contributions. If funds are available, units may match the amount of the award for those employees, for maximum awards of $1,000 or $2,000. The 20 percent allocation ($200,000) to the provost on the West Lafayette campus will be awarded to faculty with a minimum award of $500 that may be matched by the unit if funds are available.

Employees participating in the Early Retirement Incentive Program, student employees, graduate student staff, temporary staff, visiting faculty, limited term lecturers, postdoctoral appointments, regular faculty and staff employed less than one year, and employees who have a specific employment contract with the University that links additional compensation to their employment will not be eligible for special merit pay.

Special merit pay awards for 2010-11 will be made on Dec. 29, 2010.