ACROSS-THE-BOARD (ATB) AND MERIT PAY CALCULATIONS
INSTRUCTIONS FOR JULY 1, 2014 PAY CHANGES
NOTE: The ATB increases shall be applied to all classified and non-classified employees in the Executive Branch. Merit increases shall be applied to all classified employees, but are optional for non-classified employees. If merit increases are applied to non-classified employees, the agency must administer those increases within the general parameters of the merit pay system for classified employees as outlined below.
Instructions for Merit Pay calculations
1. Determine June 1, 2014 monthly salary.
2. Using the FY 13-14 Compensation Plan, identify the quartile in which the June 1 salary is located.
3. Using the Performance Pay Matrix, determine to merit pay percentage to be applied.
a. Merit pay is base building for Q1 – Q3, non-base building for Q4 and above.
b. Do not add the merit pay to the employee’s salary at this stage.
4. Apply system maintenance study results, if applicable:
a. June 1 salaries below new range minimum are increased to range minimum.
b. June 1 salaries above new range maximum are designated as Saved Pay status.
5. Determine the July 1, 2014 salary:
a. Apply any permanent increase in pay resulting from normal action (e.g. promotion, reallocation, etc.) effective after June 1.
b. Using the FY 14-15 Compensation Plan, determine if the employee’s July 1, 2014 salary is above the new pay range maximum. If so, the employee is considered in Saved Pay status for up to three years. This is their final monthly base salary for FY 14-15.
6. Calculate the 2.5% ATB based on the July 1, 2014 monthly salary from Step 5. This is the monthly ATB increase.
7. Add the monthly ATB increase to the employee’s salary.
a. The monthly ATB is applied as a base-building increase, up to the pay range maximum. This is the new monthly salary.
b. Any monthly ATB increase that exceeds the pay range maximum is multiplied by 12 and paid as a non-base, one-time lump sum in the July 2014 paycheck.
c. Any monthly ATB increase for a salary in Saved Pay status is multiplied by 12 and paid as a non-base, one-time lump sum in the July 2014 paycheck.
8. Apply the Merit Pay percentage (determined in Step 3) to the new monthly salary calculated in Step 7.
a. For employees hired after April 1, 2013, merit pay is pro-rated based on months worked during the performance cycle.
b. Employees hired after March 31, 2014 are not eligible for merit pay increases implemented on July 1, 2014.
c. If merit pay increase is base building and after applied, the salary does not exceed the FY14-15 pay range maximum, this is the new monthly base salary.
d. If the merit pay increase is base building and after applied, the monthly salary would exceed the FY 14-15 pay range maximum, raise the base salary to the pay range maximum. This is the employee’s new monthly salary. Then multiply the amount of the monthly increase that exceeds the pay range maximum by 12 and pay as a non-base, one-time lump sum in the July 2014 paycheck.
e. If the merit increase is non-base building, multiply the monthly merit pay increase by 12 and pay as a one-time lump sum in the July 2014 paycheck. The employee’s final monthly base salary is the salary calculated in Step 7.
f. An employee whose monthly salary exceeds the pay range maximum on June 1, 2014 must receive a 2 or 3-level performance rating to receive a merit pay increase. The increase is calculated as a non-base building, one-time lump sum paid in the July 2014 paycheck. If the employee received a 1-level rating, s/he is ineligible for a merit pay increase.
9. Compare monthly new monthly salary to the FY 14-15 Compensation Plan:
a. If the new monthly salary after the ATB and merit pay increases is still below the pay range minimum, increase the salary to the pay range minimum. This is the employee’s final monthly salary.