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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."
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