Pay for Performance Merit Program FAQ

1) Collaborative Goal Setting. 2) Attainment & Shared Evaluation. 3) Celebrate & Repeat!

Important Note: Merit call for 2018; policy covered (non-represented) staff will be announced when released by Office of the President (OP)

Here we present the evolving list of the most frequently asked questions regarding our new Pay for Performance merit recognition program. If you do not see your question addressed below,  contact your  Employee Relations (ER) Analyst for performance appraisal process or pay for performance questions.

** Note** Use your back button between questions for easier navigation.


Who is ineligible for consideration for the merit increase?

  1. Per PPSM 30 (page 6) no merit will be processed until an appraisal is received.
  2. Employees with a documented overall performance appraisal rating of “Improvement Needed” or “Unacceptable” on the 2016-17 appraisal
  3. Employees hired on or after January 2, 2017
  4. Employees who have had a break-in-service on or after January 2, 2017
  5. Employees who have salaries exceeding the salary range maximum for their position
  6. Exclusively represented (union) employees
  7. Rehired retirees
  8. Employees in limited, casual restricted, by agreement (BYA), per diem and contract appointments that do not stipulate eligibility
  9. Probationary employees as of July 2, 2017

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 on or after January 4, 2016, is this employee eligible to participate in this 2016 merit program?

Eligibility is limited to non-represented, career staff covered by PPSM by January 2, 2017.

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 a 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 will qualify regardless of fund source.

Will employees that have received up to 25 percent in salary increases this fiscal year be eligible to receive a merit?

Yes. Under the updated PPSM Policy 30, system-wide salary program increases are excluded from the 25% calculation.

If an employee transferred from another UC location after January 2, 2017, to our campus, are they eligible to receive a merit increase?

If all eligibility criteria are met the employee is eligible.

If a career employee’s appointment falls below 50 percent 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 UCSC, 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.

An employee recently transferred to my department; As the performance evaluation period runs from July 1, 2016, to June 30, 2017, how do I conduct an appraisal if the employee arrived during or after this period?

The current supervisor has responsibility for providing the performance appraisal. As the current supervisor, you will need to contact the old department for an appraisal of the employee’s performance. This appraisal should account for the time period the employee was in the old 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.

How do I address an employee who does not have a performance evaluation?

PPSM 30 requires that all non-represented staff have an annual performance evaluation. This is a performance requirement expected of the current supervisor. Divisions should ensure that supervisors comply with this requirement.

An employee works 50 percent time in my department and 50 percent time in another department. How will this employee’s increase be handled ?

The employee will appear on two rosters – your department roster and the roster in the other department. Each appointment will be handled separately

For those employees who have one appointment and multiple distributions: ?

The employee will appear on two rosters – department 1 roster and department 2 roster. The designated individuals from department 1 and department 2 (in accordance with their divisional organizational structure) will need to engage in proactive outreach and collaboratively reach an agreement.

How do I submit a late performance appraisal?

  1. Policy-covered (non-represented) employee performance appraisals are due on Friday, July 28th, 2017. Appraisals received up until close of business on Thursday, August 3rd will be included on your Division’s merit roster. You may submit performance evaluations after August 3rd, 2017; however, appraisals received after that date may not appear on your Division’s merit roster.
  2. In order to receive an increase, a rating of “met expectations” or above will need to be added to the roster and an appraisal will need to have been received by SHR. Ratings from performance appraisals submitted between August 7th and COB on August 25th may be manually entered on the roster before it is returned to compensation.  Appraisals received after August 25th will result in a delay of the employee's merit payout. The merit pay increases are scheduled for biweekly employees on September 20th and for monthly employees on September 29th. Pay will be adjusted retroactive to June 18th for biweekly employees and July 1st for monthly employees (to be paid out on November 1st).

What happens if an employee changes position on campus on or after June 18 for biweekly or July 2 for monthly employees?

The employee will be eligible for merit pay from up to the day they change positions. (Note: If the employee changes departments the merit pay remains with the unit only up to the departure date. If the employee remains within the unit funding stays with the unit.)

Who receives the rosters?

Principal Officers.

What type of principal officer approval will be accepted when the rosters are returned?

Email is acceptable.

Can merits exceed the recommended 4.5%?

Yes, the UCOP guidelines recommend up to 6%, so long as the unit remains within the 3% control point.

Can units augment above the 3% control point for merits?

No, units must remain within the 3% control point for merits. Units may augment salaries through other compensation programs.