Merit Program FAQ

Below are the most frequently asked questions regarding our Pay for Performance merit recognition program. If you do not see your question addressed below, contact your Employee Relations (ER) Analyst regarding performance appraisal process or Compensation for pay for performance questions.

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Who is ineligible for consideration for the merit increase?

    1. Per PPSM 30 no merit will be processed until a performance appraisal is received.
    2. Employees with a documented overall performance appraisal rating of “Improvement Needed” or “Unacceptable”
    3. Employees who have salaries exceeding the salary range maximum for their position
    4. Employees solely in represented (union) positions
    5. Rehired retirees
    6. Employees in limited, casual restricted, by agreement (BYA), per diem and contract appointments that do not stipulate eligibility
    7. Employees who have not completed a probationary period by the end of business day of July 1, 2019

Will the UCSC campus salary ranges be adjusted?

Salary ranges have been adjusted effective July 1, 2017.

If an employee is promoted or reclassified from a represented position into a non-represented PPSM position, is this employee eligible to participate in the merit program?

As long as they meet all of the eligibility requirements.

Will employees who have separated from the University on or after the effective date of the program, but before the payout date, receive the increase?

No. Based on past practices and operational considerations, any separated or terminated employee is ineligible for the merit salary increase. They must be actively employed on the payout date to receive the increase.

What is the expectation for employees funded by grants or other restricted fund sources? Will they receive increases?

Employees who are eligible to receive a merit increase qualify regardless of fund source.

If an employee was transferred from another UC location, to our campus, are they eligible to receive a merit increase?

Yes, if the transferred employee meets all eligibility criteria.

If a career employee’s appointment falls below 50% time, are they still eligible?

It depends on the status of the employee. Situations can be reviewed by Compensation on a case-by-case basis.

How does the merit salary increase affect an administrative stipend?

At UC Santa Cruz, stipends are established as a flat dollar amount, therefore the stipend amount will not automatically change. If the department wishes to adjust stipends following the merit increase, a completed Employee Action Request (EAR) must be forwarded to Compensation.

Are employees on leave status eligible?

If they meet all other eligibility criteria, they qualify upon returning from their leave. Compensation must be notified of the employee's return.

How do I conduct an appraisal if an employee transferred to my department during the appraisal period?

The current supervisor has responsibility for providing the performance appraisal. As the current supervisor, you will need to contact the previous department for an appraisal of the employee’s performance. This appraisal should account for the time period the employee was in the previous department and, as appropriate, you should incorporate any information into your appraisal. If no one is available to provide that review, the appraisal should state the period of time being evaluated by you, the current supervisor.

Will an eligible employee who has not received a performance appraisal receive a merit increase?

Per PPSM 30, a performance appraisal must have been completed for the employee within the twelve months preceding the approval of any merit increase. Any staff employee who has not received a performance appraisal will not receive a merit increase until Staff Human Resources is in receipt of a performance appraisal.

How will an employee’s increase be handled if the employee has more than one appointment?

The employee will appear on each departments’ roster and will be handled separately.

How will an employee’s increase be handled if the employee has more than one distribution?

Merit pay will be applied to all distributions.

How do I submit a late performance appraisal?

    1. Policy-covered (non-represented) employee performance appraisals are due on Friday, July 26, 2019. Appraisals submitted after the due date may not appear on your Division’s merit roster.
    2. In order to receive an increase, a rating of “met expectations” or higher will need to be added to the roster and SHR must have received an appraisal.
    3. Performance appraisals submitted after the deadline may result in a processing delay of the employee's merit payout dates.


If an employee is split funded, can the merit percentage vary by distribution?

No. All distributions for an eligible appointment must have the same merit percentage. If the split funding involves different departments, then the departments should coordinate to synchronize the merit percentages.