VII - 9. 20 - POLICY ON SALARY INCREASES AND BONUSES (Approved by the Board of Regents, June 9, 1995, EFFECTIVE July 1, 1996. Amended April 9, 1999. Please refer to the "replacement for" section of this policy.) I. Purpose and Applicability It is the UMS policy that employees may be eligible to receive salary increases for reasons of cost of living adjustments; annual salary increases based on performance; salary structure adjustments; completion of probationary period; and promotion. This policy also establishes the timing and basis for granting multiple adjustment increases and non-cumulative cash bonuses. This policy applies to nonexempt -- maintenance, office, service, and technical staff. II. COLA All regular employees in job groups identified above shall receive cost of living adjustment (COLA) increases as appropriated by the State Legislature. III. Performance Based Salary Increase A. Provided funds are available, it is the policy of the UMS that employees who consistently meet the standards of performance for their positions shall receive performance based salary increases. These increases normally shall be effective on July 1. B. Salary increases shall be administered as follows: 1. Employees who have completed an original probation period and who on an overall basis meet the standards of performance throughout the evaluation period, shall receive a one step increase. 2. Employees whose performance is evaluated as outstanding on an overall basis throughout the evaluation period may be eligible to receive up to a 2.5 percent increase based on availability of funds. IV. Salary Structure Adjustments In the event that the salary structure is adjusted, employees salaries shall be adjusted according to the Policy on Adjustment of Salary Structures and Impact on Salaries. V. Completion of Probationary Period for Nonexempt Employees Upon successful completion of an original or a promotional probationary period, nonexempt employees shall receive a salary increase effective at the beginning of the pay period following successful completion of the probationary period. VI. Promotion Upon promotional reclass or promotional transfer employees shall receive salary increases according to the Policy on Salary Upon Transfer or Reclass. VII. Within Range Salary Adjustment An employee's salary may be adjusted at any time to meet documented critical business needs (e.g., massive turnover, market driven, supply/demand). The appropriate administrator shall submit a written request to the institution's Chief Executive Office (CEO) or his/her designee along with a justification for the adjustment. The CEO or his/her designee will review the request, confer with the Vice Chancellor for Administration and Finance, and take action as appropriate. VIII. Salaries Exceeding the Maximum of the Range The institution's CEO or his/her designee may authorize a salary that exceeds the maximum of the range in order to accommodate a salary adjustment, as described in Section VII, above. Any such authorization will be done in consultation with the Vice Chancellor for Administration and Finance. Note: All actions taken under sections VII and VIII shall be reported in a timely manner to the Director of Human Resources, USMH. IX. Priority for Processing Simultaneous Pay Transactions When two or more pay transactions are to occur simultaneously, the order of the processing shall be: A. First, salary structure adjustment, if involved, B. Second, salary step adjustment, if involved, C. Third, any other transaction such as promotion, reclass, etc. X. Non-Cumulative Cash Bonuses A. A bonus is defined as a lump sum non-cumulative cash award that may be granted to a regular employee for an extraordinary contribution which substantially benefits the UMS institution. Bonus payments shall not be counted as part of base salary. B. The bonus pool shall be determined within the guidelines established by the Chancellor as part of the annual salary review process. Each Chief Executive Officer or designee shall establish criteria for bonus eligibility, review and approval, and amount of bonus awards. IMPLEMENTATION PROCEDURES: Each Chief Executive Officer shall identify his/her designee(s), if appropriate, for this policy; shall develop procedures as necessary to implement this policy; and shall forward a copy of such procedures to the Chancellor. Replacement for: The following policies as they apply to non-exempt employees of the UMS only are replaced effective July 1, 1996. However, Exempt employees will continue to be covered under such applicable existing policies until such time as revised policies governing Exempt employees are approved. UM Personnel Policies and Rules for Classified Employees, Section III Compensation - Increments, page III-2; Denial or Delay of Increment, pages III-2, III-3; Priority and Timing of Transactions, page III-7. UM Personnel Policies and Rules for Associate Staff, Employment Standards for Associate Staff, Paragraph A. Compensation of Associate Staff, page 5. UM BOR Policies and Procedures Manual, III-14.21 Policy on Supplementation of Administrative Salaries, page III-14.2l-l (Partially rescinded for Certain Academic Administrator Positions); III-14.10 Associate Staff Salary Plan, Paragraphs D.l.4, G. Cost of Living, J. Allocation of Salary Funds, pages III-14.10-1, 14.10-2 and 14.10-3. Laws Relating to and Governing Policies and Procedures of the BTSUC, Section VI, Administrative Officers - Paragraphs I.5. and I.7., page VI-5. Additionally, this policy supersedes, in whole or in part, any policy(ies) and/or procedure(s) established by the Regents, Trustees, Presidents, or their designees, of the former institutions of the University of Maryland, and of the former State Universities and Colleges, and of the Regents of the University of Maryland System that are in conflict with this policy's purpose, applicability, or intent, that may have been overlooked and not included as a specific citation under "Replacement for."