Fiscal Year 2022-2023 Annual Raise Process (ARP)

Published Sep 20, 2022 by
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Each constituent institution is required to conduct an Annual Raise Process (“ARP”) for both EHRA and SHRA employees in accordance with UNC System Office guidance. Fiscal Year 2022-2023 Annual Raise Process Instructions & Compensation Updates

The ARP process includes several possible components and eligibility requirements. For quick viewing, select the component below to jump to that section.

Legislative Salary Increases – Effective July 1, 2022

All permanent (benefits eligible) EHRA faculty, EHRA non-faculty, and SHRA/CSS employees that were employed in a permanent position at ECU on June 30, 2022, and on August 1, 2022, are eligible for a 3.5% permanent increase with an effective date of July 1, 2022.

  • The permanent increase will be calculated on the June 30, 2022, base salary and will be retroactive to July 1, 2022.
  • The LSI will be reflected in the August 15, 2022, paycheck and subject to the eligibility requirements below.
Who is eligible?
  • Permanent EHRA faculty (including Phased Retirees in their 2nd and 3rd years), EHRA non-faculty, SHRA/CSS staff (including probationary and time-limited employees), and Lab School employees
  • Must be employed on June 30, 2022
  • Eligible employees with a last work date on August 1, 2022
Who is NOT eligible?
  • Employees hired after June 30, 2022
  • Temporary EHRA faculty, Temporary EHRA non-faculty, and Temporary SHRA/CSS employees
  • Faculty participating in their first year of the Phased Retirement Program due to a TSERS earnings limitation provision, consistent with the Phased Retirement Policy and Regulation.
How will the 3.5% increase be calculated?
  • The 3.5% base salary increase will be calculated against the eligible employee’s June 30, 2022 base salary.
  • This calculation will exclude any interim and acting appointments, temporary additional duties, or secondary administrative titles.
  • The calculated increase amount will be added to the eligible employee’s current base salary as of August 1, 2022.
When is the increase effective, will I receive retroactive payment, and when will I begin receiving the new salary?
  • The increase is effective July 1, 2022 and employees will begin receiving the new semi-monthly salary in the August 15, 2022 paycheck.
  • The increase authorized for the period from July 1, 2022 to July 31, 2022 will be paid in the form of a retroactive lump sum payment in the August 15, 2022 paycheck.
Will employees currently on disability or on a leave of absence receive the legislative increase and retroactive payment?
  • Employees currently on disability or who are on a leave of absence (paid or unpaid) may be eligible for the legislative increase and retroactive payment upon their return if they satisfy all other criteria as set forth in the ARP instructions.
Will longevity, overtime pay, holiday premium, etc. be recalculated for the period from July 1, 2022 to July 31, 2022?
  • Yes, these payments will be re-calculated to include the increase and the difference between what was paid, and the re-calculated amount will be included in the August 15, 2022 paycheck.
Are employees eligible for the legislative increase retro-payment if they are employed both on June 30, 2022 and on August 1, 2022, but had a break in service between those dates, or were part-time employees between those dates?
  • Yes, an employee who was not employed continuously on a full-time basis between June 30, 2022 and on August 1, 2022 shall receive this retroactive lump-sum payment on a pro-rated basis.
Are employees who transferred into ECU after June 30, 2022 but before August 1, 2022 eligible?
  • Any employee that was on an eligible state payroll as of June 30 and now employed at ECU as of July 1 is eligible for the 3.5% increase and the retroactive payment.
  • The increase will be calculated on the employee’s June 30, 2022 salary from the other state agency.
Will retirement contributions be taken from the retroactive payment?
  • Yes, the employee retirement contributions will be deducted from the earnings.
Will employees with a last work date between June 30, 2022 and August 1, 2022 receive retroactive payment?
  • Yes, eligible employees who have a last work date between June 30, 2022 and August 1, 2022 will receive the retroactive payment as part of the employee’s final paycheck.

Labor Market Adjustment Reserve (LMAR) – Effective September 1, 2022

Purpose: LMAR adjustments are intended to address salary compression, and other critical labor market needs to equip the institution to better retain talent. Institutions have the discretion to identify which employees or positions will receive LMAR-related adjustments based on identified labor market needs. ECU has been strongly encouraged to prioritize using the use of LMAR funds to address critical workforce needs among SHRA and EHRA non-faculty employees. The Office of State Human Resources has identified major categories of LMAR actions for reporting purposes:

  • Increase salary that is below the minimum of the salary range
  • Increase salary that is below the midpoint or market/reference rate of the salary range
  • Increase salary to address salary compression or salary inequity issues
  • Increase salary to address classifications with higher turnover or higher vacancy rates
  • Other market-related reasons for salary increases

LMAR Instructions

   Basic Eligibility
  • No more than 25% of the institution’s permanent employees (as of July 1, 2022) may receive an LMAR increase.
  • Individuals must have received the 3.5% legislative salary adjustment
  • For employees who have received a 2021-2022 performance review, the rating must be “Meets Expectations” or greater.
  • If an employee was not eligible to receive a 2021-2022 performance review due to start date or EHRA non-faculty employee exempt from Section 300.2.18[R] of the UNC Policy Manual, the employee must be deemed in “good standing” by their Department Head to participate in any discretionary ARP increase.
    • “Good standing” for ARP purposes means that an employee:
      • Is not suspended with or without pay,
      • Does not have an active SHRA disciplinary action,
      • Is not in receipt of or planned to receive a notice of termination for cause,
      • Is not in receipt of an EHRA non-faculty performance improvement plan or written counseling memorandum (or its institutional equivalent),
      • Failure to complete mandated institutional training may also be a consideration for ineligibility, at the institution’s discretion.
    • Any employee who has received notice of an EHRA end of at-will appointment or EHRA notice of non-reappointment is not eligible for any discretionary component of the ARP.

Limits on LMAR Increases

  • Cannot exceed $15,000
  • Cannot exceed 15% of base salary as of the effective date of the adjustment.
  • Cannot result in a salary exceeding the maximum of the salary range associated with the position or, for SHRA employees, the market rate of the next-higher competency level.

ECU LMAR Distribution

  • SHRA and CSS employees below 93% of market index
  • SHRA, CSS, and EHRA non-faculty IT employees identified as “Hard to Recruit” below 97% of market index
  • EHRA non-faculty employees below salary range minimum

 

Division LMAR Pool Rules

Following the 93% and 97% salary adjustments the Divisions will be allocated a small portion of LMAR funds to consider increases
for the below. These permanent salary adjustments will be effective September 1, 2022 and will be reflected in the November 15th paycheck.

  • EHRA non-faculty employees below 50th percentile of salary range
  • To address any SHRA or EHRA non-faculty salary inequities or salary compression
Limits on Division Pool Increases
  • Shall follow basic eligibility above for LMAR
  • High earning employees with a base salary above $100,000 are NOT eligible
  • SHRA or EHRA non-faculty included in the 93% and 97% salary adjustments are eligible if that increase:
    • Does not exceed market range
    • Does not exceed $15,000
    • Does not exceed 15% of base salary as of the effective date of the adjustment

Frequently Asked Questions

When is the increase effective, will I receive retroactive payment, and when will I begin receiving the new salary?
  • For employees receiving the 93% or 97% LMAR the increase is effective September 1, 2022 and employees will begin receiving the new semi-monthly salary in the October 15, 2022 paycheck.
  • The increase authorized for the period from September 1, 2022 to September 30, 2022 will be paid in the form of a retroactive lump sum payment in the October 15, 2022 paycheck.
  • For the employees receiving Division LMAR Pool, the increase is effective September 1, 2022 and employees will begin receiving the new semi-monthly salary in the November 15, 2022, paycheck.
Will eligible employees currently on disability or a leave of absence receive an increase?
  • Employees currently on disability or who are on leave of absence (paid or unpaid) may be eligible for the LMAR increase and retroactive payment upon their return if they satisfy all other criteria as set forth in the ARP instructions.
Will longevity, overtime pay, holiday premium, etc. be recalculated for the period from September 1, 2022 and September 30, 2022?
  • For the employees receiving the 93% or 97% LMAR, these payments will be re-calculated to include the increase and the difference between what was paid and the re-calculated amount will be included in the October 15, 2022, paycheck.
  • For the employees receiving Division LMAR Pool, these payments will be re-calculated to include the increase and the difference between what was paid and the re-calculated amount will be included in the November 15, 2022, paycheck.
Will retirement contributions be taken from the retroactive payment?
  • Yes, the employee retirement contributions will be deducted from the earnings.
Will employees who separate from ECU on or before September 30, 2022 receive retroactive payment?
  • No, employees must be active on October 1, 2022 in order to receive retroactive payment.
How can I tell if I am below 93% or 97% market index and when will I be notified of the increase?
  • You will need to compare your annual salary to the Contributing, Journey, or Advanced rate for your job classification here (UNC SO 2018 Career Banding Rates)
      • For example: “I am an Admin Support Assoc – Journey making $32,000. According to UNC SO 2018 Career Banding Rates, 10422 – Admin Support Assoc Journey market rate is $36,177. Calculation = 32,000 / 36,177 = 0.88 or 88% market index. Meaning I would be considered in the below 93%“.
  • Individualized communication will be sent to the employees receiving a salary adjustment from Human Resources the week of October 10th.
If I am not eligible for LMAR due to performance or hiring date, when will I receive the increase?

LMAR funds are NOT available for this purpose and once the employee can be brought to 93% or 97% market index, institutional funding shall be used.

  • Active Disciplinary Action – once the action has been resolved and the employee receives a performance rating “Meets Expectations” or higher on their next review.
  • Performance – must receive a “Meet Expectations” or higher on their next interim review which shall be performed at the midpoint of the appraisal cycle.
  • Hiring Date – after receiving confirmation from the department head that the employee is in “Good Standing”, any employee hired July 1, 2022, or later shall receive their increase beginning with their October 31st

EHRA Non-Base Salary Merit Bonuses

Based on recently delegated authorities and as part of the annual raise process guidelines, the campus has authority to award eligible EHRA employees (EHRA faculty and EHRA non-faculty) a one-time bonus not to exceed 5% of the June 30 base salary to recognize meritorious performance and to maximize the retention of high-performing talent.

There is no automatic entitlement to such a bonus and the campus did not receive an allocation to support such bonuses.

Institutional resources are being redirected to provide a pool of funds equal to 2% of state funded salaries to support one-time merit bonuses. Non-state resources may spend an equivalent 2%, as well, to support these one-time merit bonuses.

Basic Eligibility
  • Individuals must have received the 3.5% legislative salary adjustment
  • For employees who have received a 2021-2022 performance review, the rating must be “Meets Expectations” or greater.
  • If an employee was not eligible to receive a 2021-2022 performance review due to start date or is exempt from Section 300.2.18[R] of the UNC Policy Manual, the employee must be deemed in “good standing” by their Department Head to participate in any discretionary ARP increase.
    • “Good standing” for ARP purposes means that an employee:
      • Is not suspended with or without pay,
      • Is not in receipt of or planned to receive a notice of termination for cause,
      • Is not in receipt of an EHRA non-faculty performance improvement plan or written counseling memorandum (or its institutional equivalent),
      • In the case of faculty, has not received an unsatisfactory post-tenure review as of their latest review cycle.
      • Failure to complete mandated institutional training may also be a consideration for ineligibility, at the institution’s discretion.
    • Any employee who has received notice of an EHRA end of at-will appointment or EHRA notice of non-reappointment is not eligible for any discretionary component of the ARP.
    • EHRA faculty subject to special clinical pay plans shall be excluded from the ARP process in its entirety and instead subject to the provisions of these plans with respect to annual compensation adjustments.
Bonus Payment Details
  • The awarded bonus payment will appear in the October 31, 2022, paycheck.
  • Performance based bonuses are subject to retirement contributions to either the Teachers’ and State Employee’s Retirement System or the UNC Optional Retirement Program.