Pay for Performance Merit Program FAQ

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

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 (pages 5-6) 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” on the 2017-18 appraisal
    3. Employees hired after January 2, 2018
    4. Employees who have had a break-in-service after January 2, 2018
    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 1, 2018

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 this 2018 merit program?

Eligibility guidelines only include non-represented, career staff covered by PPSM Policies no later than January 2, 2018.

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.

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

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

If an employee was transferred from another UC location after January 2, 2018, to our campus, are they eligible to receive a merit increase?

Yes, if the transfer 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 the Compensation Unit 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 the Compensation Unit.

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, 2017, to June 30, 2018, 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 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 a merit 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

An employee works 50% time in my department and 50% 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 27, 2018. Appraisals received up until close of business on Tuesday, August 7, 2018 will be included on your Division’s merit roster. You may submit performance evaluations after August 7, 2018; 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 higher 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 24, 2018 may be manually entered on the roster before it is returned to compensation.  Appraisals received after August 24, 2018 will result in a processing delay of the employee's merit and 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.