Further to recent memos concerning the merit process for 2016-17, including PDAD&C #82 (April 7, 2017) and PDAD&C #108 (June 2, 2017), I am writing to confirm that we have recently reached a one-year agreement with UTFA regarding salaries, benefits, and workload for faculty members and librarians for the period from July 1, 2017 to June 30, 2018.

The purpose of this memo is to summarize the agreement relative to salary and to provide a timeline for implementation. Other facets of the agreement will be communicated separately.

2017-18 Salary Increases

Effective July 1, 2017, all faculty and librarians are entitled to an across the board [ATB] increase of 1%, up to a maximum flat dollar amount of $1,612 (see the “New PTR Mechanism” described below), plus an additional flat dollar increase of $1,150, pro-rated for part-time faculty and librarians in accordance with their FTE. This flat dollar amount is equivalent to 0.75% of the average salary for faculty and librarians.[1]

These two increases will be implemented for the August 2017 pay run and will be retroactive to July 1, 2017. Both new increases will be calculated centrally and Business Officers will be responsible for updating the employee’s basic pay record in the HRIS system for the August pay for faculty members and librarians who commenced employment with the University prior to (but not including) July 1, 2017.

Reminder of New PTR Mechanism for the Calculation of Merit Pools

You will recall that a new mechanism beginning in 2015-16 was agreed to for the calculation of PTR pools, which results in an increase to the PTR pools if there is an ATB increase agreed to or awarded (see PDAD&C #55, April 14, 2016).

With the agreement on ATB for July 2017-18, there are now additional funds generated by the new PTR mechanism that must be distributed to faculty and librarians on the same basis as the original 2016-17 PTR and the 5% pools already allocated and distributed.

Description of New PTR Mechanism

The 2017-18 agreement with UTFA provides for the continuation of the “new” PTR mechanism originally agreed to in 2015-16. The new PTR mechanism provides that faculty and librarians with an annual salary above the reference point (currently $161,150) will receive a maximum flat dollar increase equal to the ATB percentage of the reference point value instead of the ATB increase. The residual money will be directed to increase the relevant PTR pools.

This means that for the 2017-18 agreement, effective July 1, 2017, every faculty member and librarian with a June 30, 2017 annual salary of more than the reference point of $161,150 will receive a flat dollar ATB base salary increase of 1.0% x $161,150 = $1,612, pro-rated for part-time faculty and librarians in accordance with their FTE, in place of the 1% ATB.

The difference between 1.0% ATB of the individual’s base salary and the $1,612 flat dollar amount will flow to the divisional PTR pool for distribution through the PTR process to all faculty and librarians in the pool on the basis of merit (i.e., these monies will be added to the above and below the breakpoint pools based on the proportion of funds that were in each pool as they existed in June 2017).

For example, if 40% of PTR funds were in the below the breakpoint pool and 60% of PTR funds were in the above the breakpoint pool, then 40% of the additional funding will flow to the below the breakpoint pool and 60% will flow into the above the breakpoint pool.

Implementation of the New PTR Mechanism

The breakpoints and amount contributed per FTE remain as communicated in PDAD&C #108 (June 2, 2017). Divisions will need to calculate the additional amounts to be distributed as PTR and 5% merit to faculty members and librarians as follows:

1. Re-calculate the total amount in the PTR pools including the extra funds generated by the 1% ATB (i.e., the PTR amount generated in accordance with PDAD&C #108 [where ATB was assumed to be 0%] + the extra PTR amount generated by the 1% ATB) using the new mechanism above.
2. Remove 5% of the total for allocation through the special merit pool.
3. Distribute the remaining 95% by re-calculating the individual PTR allocation amounts using the revised pools and the relative rankings generated in the 2016-17 assessment process.
4. For multi-department Faculties, distribute the 5% merit pool using the rankings generated in the 2016-17 process. For single-department Faculties, this will be done by the Office of Faculty & Academic Life and the revised amounts communicated to Deans.

Revised salary templates are available online.

Pool Amounts and Processing Instructions

The PTR pool amounts have been updated and are available now in the B6 application. Business Officers should toggle the “ATB Excess” calculation ‘ON’ to see the estimated impact of this ATB award on the PTR pools. The B6 application data may be helpful as a point of reference in recalculating the PTR and 5% merit pools.

Business Officers should review and update each faculty and librarian salary record in HRIS. To summarize and for clarity, the records will reflect the following July 1, 2017 salary increase entries:

1. July 1, 2017 flat dollar increase of $620 (from 2015 agreement) – processed in the July 2017 pay;
2. New: July 1, 2017 ATB increase of 1%, subject to maximum flat dollar amount of $1,612 for those above the reference point;
3. New: July 1, 2017 ATB flat dollar amount of $1,150;
4. Revised: July 1, 2017 revised PTR amount (i.e., edit the entry processed in the July 2017 pay and enter the new total amount);
5. Revised: Where applicable, July 1, 2017 revised 5% merit amount (i.e., edit the entry processed in the July 2017 pay and enter the new total amount).

Instructions on the HRIS implementation of these increases will be circulated to your Business Officers. The full instructions regarding HRIS processing will also be available online after July 24, 2017.

[1] Please note that this is separate from and in addition to the $620 flat dollar increase amount provided for in the 2014-2017 agreement with UTFA about which a reminder was sent on June 20, 2017 and which will be implemented for the July 2017 pay run.