HR, employee impacts from 2014-15 state budget and other legislation

The 2014-15 state budget provides an across-the-board salary increase effective July 1, 2014, for employees who are subject to the State Personnel Act. The salaries of all full-time permanent and probationary SPA employees, including those on time-limited appointments, will be increased by $1,000. Permanent full-time employees who work a 9-, 10-, or 11-month work schedule also will receive the $1,000 increase. Permanent part-time employees’ raises will be pro-rated.

• Employees are eligible for the increase without consideration of performance ratings or disciplinary actions.

• The increase does not apply to employees separated from state service prior to July 1, 2014, or to employees hired effective July 1, 2014, or later.

• Employees on approved leave of absence without pay shall receive the increase upon reinstatement and if meeting eligibility requirements.

• Based on availability of funds, employees with temporary appointments may be granted a comparable salary adjustment, if requested by employing departments and coordinated with HR.

HR and financial services payroll are coordinating to meet the targeted goal of including these salary increases in the Aug. 31 payroll. The increase will be retroactive to July 1, 2014.

The budget did not include funding for raises for EPA faculty and EPA staff but did allow for campus flexibility for EPA salary increases with existing funding. Chancellor Dubois, in consultation with his Cabinet and subject to approval and guidance from UNC General Administration and the Board of Governors following its September meeting, is hopeful that the University will be able to match the SPA increase for all eligible faculty and EPA employees. More details will be forthcoming.

Other items of importance:

The budget also grants an additional five days of bonus leave effective Sept. 1, 2014, to eligible, leave-earning permanent employees who are employed on Sept. 1, 2014. Eligible, permanent part-time employees shall be granted appropriate pro-rated amounts.

This increment of bonus leave is different than the extra leave days provided the last two years. This increment of bonus leave is not “use or lose” and may be carried over to future fiscal years if not used. It is subject to leave payout over and beyond the annual leave payout cap of 240 hours if not used at time of employee separation from service, just like several increments of bonus leave provided by the General Assembly in the early 2000s.

This bonus leave does not apply to employees separated from service prior to Sept. 1, 2014, or to employees hired after that date.

The budget restores the number of courses that eligible employees may take to three per academic year. The University will revise its policy immediately.

The N.C. General Assembly reinstated the previous shorter vesting period for N.C. Teachers’ and State Employees’ Retirement System (TSERS) and the Law Enforcement Retirement System (LERS), reducing the time from 10 years to five years retroactive to Aug. 1, 2011. Employees hired on or after that date and who enrolled in those retirement plans will have a five-year vesting period. Note: There is no change for those enrolled in the UNC Optional Retirement Plan (ORP) since vesting was always set at five years.