Update on Merit (PTR/5%) Process for the 2017-18 Academic Year and Implementation of the Salary and Benefits Agreement for Faculty and Librarians, effective July 1, 2018 (PDAD&C #111)

Further to PDAD&C #91 (May 4, 2018) and #94 (May 18, 2018), I am writing to let you know that the tentative agreement between the University and the University of Toronto Faculty Association (UTFA) in respect to PTR and salary, ratified by UTFA on May 15, was approved by the Business Board on June 19.

The purpose of this memo is to summarize the agreement relative to merit and salary and to provide a timeline for implementation. This is a two year agreement and consequently we have included information concerning both years, 2018-19 and 2019-20. Other facets of the agreement will be communicated separately.

This is a reminder that ATB and PTR for July 1, 2018 should be implemented for all faculty and librarians for the July pay run as clarified in PDAD&C #94 (May 18, 2018).

Salary Increases

2018-19

Effective July 1, 2018, all faculty and librarians are entitled to an across the board [ATB] increase of 1.9%, up to a maximum of $3,115 (applied to their June 30, 2018 base salary) pro-rated for part-time faculty and librarians in accordance with their FTE.

This increase must be implemented for the July 2018 pay run. This percentage increase will be calculated centrally and Business Officers will be responsible for updating the employee’s record in the HRIS system for the July pay for faculty members and librarians who commenced employment with the University prior to (but not including) July 1, 2018.

2019-20

Effective July 1, 2019, all faculty and librarians are entitled to an across the board [ATB] increase of 1% applied to the June 30, 2019 base salary plus a flat dollar amount of $1,630 pro-rated for part-time faculty and librarians in accordance with their FTE.

PTR Mechanism for the Calculation of Merit Pools

2017-18

The University and UTFA have agreed that the calculation of Merit (PTR and 5%) for the 2017-18 year will use the same mechanism used in 2016-17 and 2015-16. This is described below.

2018-19

The University and UTFA have agreed that the calculation of Merit (PTR and 5%) for the 2018-19 year will use the mechanism that had been used prior to 2015-16.

Description of PTR Mechanism for 2017-18

The agreement with UTFA provides for the continuation for 2017-18 of the PTR mechanism used in 2015-16 and 2016-17. This PTR mechanism provides that faculty and librarians with an annual salary above the reference point (currently $163,970) will receive a maximum flat dollar increase equal to the ATB percentage of the reference point value ($3,115) instead of the ATB % increase on their full salary. The residual money will be directed to increase the relevant PTR pools.

This means that, effective July 1, 2018, every faculty member and librarian with a June 30, 2018 annual salary of more than the reference point of $163,970 will receive a flat dollar ATB base salary increase of 1.9% x $163,970 = $ 3,115, pro-rated for part-time faculty and librarians in accordance with their FTE, in place of the 1.9% ATB.

The difference between 1.9% ATB of the individual’s base salary and the $3,115 flat dollar amount will flow to the divisional/unit PTR pools 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 2018).

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 to the above the breakpoint pool.

Implementation of the PTR Mechanism for 2017-18

The breakpoints remain as communicated in PDAD&C # 94 (May 18, 2018). The following are the full details. The PTR pools for distribution are now available in the FIS B6 application.

PTR for Tenure-Stream, Part-Time, and CLTA Faculty:

Breakpoint: $163,250

Amount contributed to pool per FTE:
Below Breakpoint – $ 3,570*
Above Breakpoint – $ 2,025*

PTR for Teaching-Stream Faculty (Continuing and Term Appointments):

Breakpoint: $145,600

Amount contributed to pool per FTE:
Below Breakpoint – $ 3,335*
Above Breakpoint – $ 1,935*

PTR for Librarians:

Breakpoint: $123,750

Amount contributed to pool per FTE:
Below Breakpoint – $ 2,790*
Above Breakpoint – $ 1,375*

*These amounts exclude the 5% set aside for allocation through the 5% merit pool.

Revised salary letter templates are available online.

Pool Amounts and Processing Instructions

The PTR pool amounts have been updated and are available now in the B6 application.

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 Wednesday, June 20.