Guideline P-043 

SUBJECT: Compensation 

I. Compensation Philosophy: 

For the purpose of implementing the amendment in the 1999-2000 appropriations bill on compensation required by state law and approved by the Board of Regents at their meeting in June 1999, the following guidelines are established to provide direction for the Tennessee Board of Regents system. The Tennessee Board of Regents desires to have a compensation system which is fair, equitable and accountable to the Board of Regents and the public-at-large. Furthermore, the Board of Regents will consider budget availability in all salary decisions. This guideline will cover compensation transactions at 6 universities, 13 two-year campuses, the TBR central office, and 26 technology centers with approximately 16,000 full-time and part-time employees. A Board Committee on Compensation approves the salary increase recommendations.

The goal of the Tennessee Board of Regents is to provide all employees compensation consistent with market and job performance. This goal is reflected within all TBR budgets and will be dependent upon budget availability. The same reportable guidelines apply to positions totally supported by restricted or auxiliary funds.

Faculty: Faculty salaries will be a primary objective and priority in developing and approving the overall system budget. It is the goal of the Board of Regents, within available funds, to provide competitive compensation for faculty, consistent with the market for their discipline and rank at officially recognized peer institutions and consistent with performance.

Nonexempt staff:  It is the goal of the Board of Regents, within available funds, to compensate nonexempt staff within the approved classification system consistent with market and performance.

Exempt staff:  It is the goal of the Board of Regents, within available funds, to compensate exempt staff consistent with the market of peers at comparable organizations and consistent with market and performance.

II. Procedures: 

1. All reportable salary increases are subject to approval by the Board of Regents. Employees receiving a salary increase must be informed that the increase is subject to review by the TBR administration and approval by the Board of Regents. Salary increases are not final until approved by the Board. An executive level, informational report will be provided to the Board of Regents regarding these salary adjustments for the purpose of complying with language contained in the appropriations bill.

2. Institutional heads have developed compensation plans approved by the full Board as required by the legislative amendment. These plans will be updated consistent with this policy.

A. The following non-reportable increases will not require Board of Regents approval but will be provided to the Legislative Budget Analysis Office. An executive-level, informational report will be provided to the Board of Regents regarding these salary increases for the purpose of complying with language contained in the appropriations bill.

• Reclassifications and Degree Certification Adjustments – for EEO 4-7 less than $3,500 and for EE0 1-3 less than $4,500 and an annual salary of less than $100,000 for the universities and community colleges

B.  The following reportable increases will require Board of Regents approval and will be provided to the Legislative Budget Analysis Office.  An executive-level, informational report will be provided to the Board of Regents regarding these salary increases.  Plans for merit and equity increases are submitted to the Central Office in the Spring for staff review.  Plans for merit and equity increases are then recommended to the Committee on Compensation and approved by the Board at the Summer Quarterly Board meeting.  Increases pursuant to the plans are approved at the Fall Quarterly Board meeting.  Faculty promotions are approved at the Quarterly Summer Board meeting. Reclassifications and degree certification increases are included as part of the Interim Action Report of the Chancellor during all Quarterly Board meetings. Special increases and critical increases are included as part of the Committee on Compensation Agenda.

• All Equity and Market Adjustments
• All faculty promotions
• All reclassifications and degree certification adjustments for EEO 4-7 more than $3,500 - job audits from the HR office are required for these reclassifications
• All reclassifications and degree certification adjustments for EEO 1-3 more than $4,500 and an annual salary of $100,000 for the universities and community colleges or above– job audits from the HR office are required for these reclassifications
• All special and critical adjustments

C.  The Board of Regents will report guidelines for administering statewide salary policy initiatives when appropriate to the Legislative Budget Analysis Office.

 3. Nothing in these procedures shall constrain the Board of Regents in making administrative or other appointments and establishing contracts of employment or compensation for Senior Staff Appointments. Further, in implementing these guidelines, the Tennessee Board of Regents shall comply with all applicable laws and attend carefully to requirements and objectives of the Board of Regents.

4. An initial salary of $100,000 (universities and community colleges) for an exempt position shall be subject to the prior approval of the Office of the Chancellor and notice to the Board of Regents; and, in the case of a Senior Central Office staff, prior approval of the full Board. All annual and mid-year salary increases for exempt staff with a base salary of $100,000 (universities and community colleges) or higher shall be subject to the prior approval of the Office of the Chancellor, with notice to the full Board, and, in the case of a Senior Central Office staff, prior approval of the full Board.

5. Academic deans, academic department and/or division heads, directors of the centers of emphasis and excellence (including those officers who with varying titles have line responsibility for administration of academic faculty or staff at the academic disciplinary unit level, including interim appointments)

6. Upon retirement, administrators, with the prior approval of the Chancellor and notice to TCRS, shall be eligible to work on a part-time basis. The retired administrator's compensation shall not exceed that allowed by state law to avoid forfeiture of retirement benefits.

III. Definitions: 

Definitions for salary increase categories have been provided as follows:

Reportable increases are those increases reported to the Board and the Office of Legislative Budget Analysis:

• Reclassifications –RCLS—Increases given when an employee's duties and responsibilities evolve to the extent that another classification is more appropriate and includes an appropriate salary adjustment.
• Degree Certification Change Increase –DGCH—Increases for educational achievement, such as completing the requirements for the Bachelors, Masters, and Doctorate programs, or certifications designated by the campus.
• Merit Increases—MERT—Increases based on the employee's job performance. Requires written documentation and an adequate plan to objectively measure the employee's performance.
• Equity and Market Adjustments—EQIN—Increases intended to mitigate an internal institution inequity or a documented, proven, external inequity.
• Critical and Special Adjustments—CSAJ—Increases may be granted in extraordinary circumstances to retain a uniquely qualified employee where the institution is in danger of losing the employee and failing to act at this time could result in harm to the institution. Evidence of another job offer is not required; however, the president or director must provide documentation of the special circumstances which justify the recommended salary increase or increases for employees who assume significant new job responsibilities and whose position title remains the same. Adjustments of this type are infrequent and usually relate to significant reorganizations within the campuses.
• Additional Across the Board Increase—AATB—Increases across the Board recommended as additional to state mandated ATB.
• Faculty Promotions—FPRM—Increases associated with faculty promotion recommendations.
• Counteroffers—COFF—An offer made to retain an employee who has been offered another job.
• Athletic Increase—AATH—Principles for Compensation Increases:
• TBR encourages all institutions to include athletic coaches and staff as part of the compensation plan for the institution.
• TBR encourages all institutions to award compensation increases for athletic coaches and staff at the same time as other faculty and staff in the September timeframe for Board review.

However, TBR recognizes the competitive nature of athletics. Therefore, compensation increases for head coaches, other coaches, and their staff within the same discipline may be approved as exceptions (similar to the existing counteroffer process).

These compensation increases would be considered exceptions to the previously approved compensation guideline. The Chancellor would review and approve the increases before implementation. The actual increases would be reported to the Board after-the-fact.

This could be out of cycle as an exception and would be reported to the Board after the fact as an exception. However, a request for approval to pay a supplement for a winning season (if the contract provides for the supplement and the contract has been approved by the Chancellor or designee) does not require a second approval. The campus administrator designated to report the athletic increases to the Board shall be assigned by the President.

Contracts must be reviewed by the Office of General Counsel for legality and content.  Any changes in salary must be processed according to the guidelines in P-043.

• Additional Bonus – One time increases recommended as additional to state mandated bonus. (Will be reported as a group total)
• Technical Adjustments – OOPS—Technical Adjustments and/or omissions. Any type of salary adjustment or omission to the previously approved salary for the employee.

Non-reportable increases are those increases that occur and do not require reporting to the Board or the Office of Legislative Budget Analysis:

• Non-faculty promotions - Increases resulting from applying for and being selected to fill a vacant position - Increases which are provided when an employee is assigned to a position in a different class which has a higher pay grade than the employee's previous position, and the assignment is not a result of a reclassification of the employee's existing position. A promotional appointment must occur within the guidelines in TBR P-010.
• Percent of Employment - Increases attributable to an increase in the percent of time worked (such as moving from 75% to 100% time).
• Certified Professional Administrative Secretary - Increases of 9% given upon passing of all parts of the CPS examination according to state law.
• Additional temporary duties - Increases associated with the assumption of additional duties on a temporary basis, e.g. stipend. Temporary appointments must occur within the guidelines in TBR P-010.
  
  TBR Meetings:  Presidents Meeting May 16, 2006; Presidents Meeting November 8, 2006; Presidents Meeting February 13, 2007; Presidents Meeting May 12, 2009