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UCSD FURLOUGHSALARY REDUCTION IMPLEMENTATION PLAN by mifei

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									UCSD FURLOUGH/SALARY REDUCTION IMPLEMENTATION PLAN-AS OF OCTOBER 19, 2009
(For Internal Use Only by HR Contacts/HSCAO)
UCOP Resources
The Office of the President has published system-wide information about the UC Furlough/Salary Reduction program.

       Office the President Website: http:www.universityofcalifornia.edu/budget/?page_id=87
       Regents’ Budget Reduction Recommendation (PDF): http://www.universityofcalifornia.edu/regents/regmeet/jul09/j2.pdf
       Furlough/Salary Reduction Plan Q&A: http://www.universityofcalifornia.edu/budget/?page_id=87
       Furlough/Salary Reduction Plan Information for Administrators: http://atyourservice.ucop.edu/administrators/employment/furlough.html
       FAQs for Administrators: http://atyourservice.ucop.edu/administrators/employment/furlough/index.html
       Provisions Governing the Use of Furlough Time (PDF): http://atyourservice.ucop.edu/administrators/docs/fur_provs.pdf
       Budget Resources Website: http://www.universityofcalifornia.edu/budget/?page_id=5
       UCOP Furlough Facts: http://www.universityofcalifornia.edu/budget/documents/furlough_facts.pdf

UCSD Campus Resources
In response to the general UC Furlough/Salary Reduction program, UCSD is establishing campus-specific implementation guidelines. We recommend that you check the
following sites regularly for updates.

       UCSD Salary Reduction Furlough Info: http://blink.ucsd.edu/sponsor/budgetline/paycut-furlough.html
       Vice Chancellor Health Sciences Furlough Website: http://som.ucsd.edu/human-resources/furlough-budget-information
       Office of Post Award Financial Services (OPAFS) for Extramural Fund Questions: http://blink.ucsd.edu/Blink/External/Topics/Policy/0,1162,12472,00.html

CONTACT THE FOLLOWING OFFICES FOR QUESTIONS:

Academic Personnel Services
     Policy: academicpersonnel@ucsd.edu
     PPS Implementation: mbaran@ucsd.edu or ext 23748

Staff Human Resources
      Policy: employeerelations@ucsd.edu or ext 44115
      PPS & Implementation Questions: records@ucsd.edu or ext 40986

Payroll
     Timekeeping & general questions: http://blink.ucsd.edu/Blink/External/Topics/Policy/0,1162,3700,00.html

Health Sciences Compensation Plan
     Elise Jameson: ejameson@ucsd.edu or ext 45454


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TOOLS FOR IMPLEMENTATION:

       Furlough Excluded Funds Query Tool & Furlough Modeling Calculator (see “Employee Easy Queries”):
        https://www-act.ucsd.edu/cgi-bin/employeelink.pl/1252098926/Node02606
       Manual PPS Corrections Template (Excel spreadsheet):
        http://som.ucsd.edu/human-resources/furlough-budget-information#PPS_Change_Instructions
        Departments will be required to track all manual PPS salary reduction changes and will be required to submit a quarterly report to the VCHS ASA Office.
       Health Sciences Faculty Furlough Calculator (Excel spreadsheet)
        http://som.ucsd.edu/files/webfm/HR/furloughs/Furlough%20Calculator%20NIH%20Cap%20Chr%20Stp%20Aug%2009.xls
       Furlough Language for Offer Letters:
        http://som.ucsd.edu/node/542
       Furlough Banding Tables:
        http://som.ucsd.edu/files/webfm/HR/furloughs/Furlough%20Bands.pdf
       Implementation Guidelines and PPS Procedures: http://atyourservice.ucop.edu/administrators/docs/implement_guide.pdf


TRAINING PRESENTATIONS:

       Campus Implementation Training (for non-excluded, policy covered staff) (PDF)
        http://som.ucsd.edu/files/webfm/HR/furloughs/Salary%20Cut%20Program%20Training%209-2-09.pdf
       Health Sciences Faculty Implementation Training (PDF)
        http://som.ucsd.edu/files/webfm/HR/furloughs/Faculty%20Furlough%20Plan%20Implementation%20Sept%2009.pdf

BUDGET AND FURLOUGH INFORMATION:

       Budget Line: http://blink.ucsd.edu/sponsor/budgetline/
       UCSD Campus Holiday Closure: http://som.ucsd.edu/node/549
       Campus notice: UCSD campus closure Dec. 19 - Jan. 3: http://adminrecords.ucsd.edu/Notices/2009/2009-8-5-2.html
       UC Provisions Governing the Use of Furlough Time: http://atyourservice.ucop.edu/administrators/docs/fur_provs.pdf
       Open Letter to Faculty (Published September 10, 2009): http://blink.ucsd.edu/_files/open_letter_faculty.pdf
       President Yudof's 7/16 letter to UC community about furloughs: http://www.universityofcalifornia.edu/budget/documents/yudof_furlough_letter.pdf
       What UCSD Is Doing: Closures and Cancellations: http://blink.ucsd.edu/sponsor/budgetline/what-ucsd-is-doing.html
        Services, office hours, and other aspects of daily campus operation are changing due to budget reductions and furlough implementation. See the link above for changed or canceled services, programs, or annual events.
       Your Cost-Savings Suggestions: http://blink.ucsd.edu/sponsor/budgetline/your-suggestions.html




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FURLOUGH/SALARY REDUCTION INFORMATION SUMMARY – AS OF 10/19/09
IMPLEMENTATION
TOPIC                                   UCSD IMPLEMENTATION                                         OFFICE OF THE PRESIDENT INFORMATION
Effective Dates                          Employees who are subject to the plan will receive a       September 1, 2009 – August 31, 2010
                                           salary reduction beginning with their September
                                           salary. For exclusively represented employees, the          The Plan is effective September 1, 2009, and employees who are
                                           furlough plan is subject to collective bargaining.           subject to the Plan will participate for 12 months, through August
                                                                                                        31, 2010. For employees who are paid monthly, the reduction will
                                                                                                        be reflected in their September paycheck, which is issued around
                                                                                                        October 1, 2009. For employees who are paid bi-weekly, the
                                                                                                        reduction will begin with the first full pay period in September.
                                                                                                        (7/21/09)

Number of Furlough Days Accrued            The salary reduction will be spread evenly across the   Based on percent salary reduction table:
                                            12 months between September 1, 2009 and August          http://hr.ucsd.edu/policy/salaryband.pdf
                                            31, 2010, regardless of when furlough days are
                                            taken.
When can employees begin using          Employees may use furlough hours during the month            Employees can begin using furlough days as early as September 1,
furlough days?                          they are accruing (8/30/09)                                   with the approval of the supervisor/manager/department head.
                                                                                                      Supervisors have the authority to approve the use of furlough days in
                                                                                                      advance of accrual in order to manage employee schedules during
                                                                                                      the term of the program. Before approving the use of furlough time,
                                                                                                      supervisors should consider any upcoming pre-scheduled
                                                                                                      furlough/closure days (i.e., it would not be prudent for a supervisor
                                                                                                      to approve an employee using all furlough accruals prior to a
                                                                                                      scheduled holiday closure period). (8/26/09)
RETROACTIVE COST TRANSFERS:                                                                          If a department makes a retroactive payroll adjustment, which
                                                                                                      results in the employee's salary expenses being transferred from an
How will employees be impacted by                                                                     extramural fund to a non-extramural fund source, the employee
retroactive cost transfers involving                                                                  would not become subject to the Plan with respect to any pay
extramural funds? Could an employee                                                                   already received by the employee. Conversely, if an employee had
become subject to the Plan after-the-                                                                 been subject to the Plan and his or her salary expenses were
fact?                                                                                                 subsequently transferred to an extramural fund source, pay already
                                                                                                      received by the employee would remain subject to the Plan.
                                                                                                      (9/15/09)




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PLAN PARTICIPATION
What employees are subject to the      Employees subject to the cut are placed in             Faculty
Plan?                                   cut/furlough bands based on their January 2009            o Academic Senate
                                        “Next Year MCB.”                                          o Non-Senate
                                       The Next Year Medical Contribution Base (MCB) is       Non-Senate Academics
                                        the salary is used to calculate/determine the          Health Sciences Compensation Plan Faculty Members
                                        following year’s medical contribution base.            Policy-covered (non-represented) staff
                                       The MCB does not change during the year,                  o Career, limited, floater, per diem, and partial year career
                                        regardless of salary changes.                                  appointments
                                       An MCB will be calculated for employees who do not        o Regular status (career employee who is not required to serve a
                                        already have one (e.g. new employees).                         probationary period or who has passed probation) and
                                       PPS Screen: “Nxt ContBase”field on the IINS screen.            probationary employees
                                       Salary cut distribution lines will be added in PPS,       o Full-time and part-time
                                        similar to the START program.                          Senior Management Group Members
                                       A central program will be run in September to          Rehired retirees
                                        update PPS.                                            Recalled faculty
                                       Departments will be responsible for maintaining the    New hires
                                        cuts in PPS for the duration of the program

                                    ACADEMIC PERSONNEL
                                     Special Payments/Leaves:
                                       Included:
                                        Administrative stipends (CHS and STP DOS
                                            codes)
                                        Leaves of absence with pay (e.g. sabbatical)

                                        Excluded:
                                         By agreement payments (BYA DOS code)
                                         UNX and ADL DOS codes
                                         Additional summer compensation (regardless of
                                            fund source)
                                         Relocation/Housing Allowance (RIP DOS code)
                                         START participants (only if % is greater than
                                            reduction % and until agreement end date)

What employees are NOT subject to      Excluded Funds Query:                                    Approval of furlough exclusions for positions funded by other
the Plan?                               https://www-act.ucsd.edu/cgi-                             funding sources is the responsibility of each vice chancellor and the
                                        bin/employeelink.pl/1252098926/Node02606                  Chancellor
                                                                                                 Represented staff and academic employees (subject to obligations
                                       What is the definition of extramural funds?               under the Higher Education Employer-Employee Relations Act) –
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                            Extramural funds include federal, state, other            currently represented staff are not participating the plan.
                            government or private contracts and grants              START participants if their voluntary reduction is already equal to or
                            (including AARA contracts and grants), cooperative       exceeds the percent reduction for their respective pay band
                            agreements and campus awards of special State           Student employees, including work-study participants
                            appropriations for AIDS, Tobacco, and Breast Cancer     Medical residents
                            research programs. OP has been working with the         H-1B, H-2, H-3 and E3 visa holders
                            campus payroll offices to confirm the payroll           Without salary (WOS) appointments
                            specifications used to identify extramural funds.       Employees whose participation is precluded by law. (Employees with
                            (8/5/09)                                                 employment contracts that cannot be changed unilaterally by the
                                                                                     University will be asked for a voluntary salary reduction appropriate
                        HEALTH SCIENCES FUNDING EXEMPTION (PENDING                   for their pay band.)
                        APPROVAL as of 9/21/2009)                                   LBNL employees
                         “Extramural Sources – Research” – Funds that              Hastings employees
                           should be excluded from furlough by virtue of being      Medical Center employees
                           extramural funds from federal, state, other              Medical Group employees
                           government or private contracts, grants or
                                                                                    Post-docs
                           cooperative agreements. Also included are:
                                                                                    Employees on extramural funds
                           o Intergovernmental Personnel Agreements (IPAs)
                                                                                      o Compensation that is 100% funded from extramural funds is
                               – Funding from the VA, a federal entity
                                                                                           excluded from the Plan. For those with salaries that are
                           o Joint Personnel Agreements (JPAs) – Funded
                                                                                           partially funded from extramural funds, the exclusion will apply
                               from research contract and grant dollars flowing
                                                                                           to that portion of their salary. To the extent an individual has a
                               through the Veterans Medical Research
                                                                                           partial component of their salary reduced, they will also receive
                               Foundation. These would be included in the
                                                                                           the corresponding proportional share of furlough days/hours.
                               approved funds if we were the prime recipient.
                               The primary source of these flow-through
                                                                                            For example, an employee with a $50,000 annual salary, 60
                               dollars is NIH.
                                                                                            percent funded from General Funds and 40 percent from
                           o Funds designated as gifts – These all included
                                                                                            extramural funds, would be in Salary Band 3 based on his/her
                               some degree of donor intent. Many are
                                                                                            full-time salary rate. He/she would accrue 9.6 furlough days
                               designated for use in research efforts. These
                                                                                            during the year (60 percent of 16 days), and his/her salary
                               are research fellowships that are assigned a gift
                                                                                            would be reduced by $1,800 (6 percent of $30,000). It is
                               number since they were entered through the
                                                                                            intended that this process will be incorporated into the initial
                               gift processing system
                                                                                            payroll release and will be effective with September payroll.
                                                                                            (8/5/09)
                           “Extramural Sources – Other” – Funds that should
                            be excluded from furlough by virtue of being
                            extramural funds from non-state and non-UCOP
                            appropriation funds. These include:
                            o Agency Funds – Revenue from affiliates where
                                we have a contractual relationship that includes
                                providing them access to our systems.
                                Examples of these affiliates: Howard Hughes
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                                Medical Institute and the Ludwig Institute for
                                Cancer Research
                            o   Research Overhead Return – California Institute
                                for Regenerative Medicine direct and indirect
                                (19941A) funding is for research and is
                                supported by bonds. Clinical trial agreement
                                direct and indirect (75014A) funding is for
                                research, is provided by industrial sponsors, and
                                the indirect component is managed locally here
                                at UCSD. Therefore, it is different from the
                                overhead from federal, private and other
                                sponsors that flow to UCOP then gets
                                reallocated back to the campus.
                            o   Funds 60100A, 60105A, 60106A, 60107A,
                                60109A, 60225A – funds either support direct
                                patient care or directly support the
                                infrastructure to ensure the continuity in the
                                patient care service
                            o   Fund 60153A – various state and other
                                government contracts to provide patient care
                                and community health services
                            o   Fund 60738A – State contract to support
                                multilingual 24/7 smokers crisis counseling
                            o   Funds 60990A – State contract to support
                                psychiatric patient care
                            o   Specific 60XXXA – Funds either support direct
                                patient care or directly support the
                                infrastructure to ensure the continuity in the
                                patient care service

                        HEALTH SCIENCES – CLINICAL EXEMPTION (APPROVED
                        9/21/2009)
                         Employees whose effort is 100% dedicated to clinical
                            activities who meet the following internal criteria:
                            o Direct patient care responsibilities
                            o Medical Assistants
                         Unrepresented employees with direct patient care
                            responsibilities (regardless of funding)
                         Represented employees in direct patient care titles
                            (NX, EX, HX)
                         MSP Contract Staff Physicians
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                                    Even if you are included in the program, certain types
                                     of pay will not be cut.
                                      o Awards
                                      o By agreement payments
                                      o Overtime pay
                                      o Shift differential
                                      o Terminal vacation payout
                                      o Severance pay
                                      o Note: Stipends are included.

Exclusively Represented Employee                                                               Exclusively represented employees whose unions have not agreed to
                                                                                                the furlough plan should check the collective bargaining agreement
                                                                                                for their unit. Where a contract is in place, employees will choose to
                                                                                                use vacation, other accrued time, or leave without pay during
                                                                                                campus closure days. For represented employees whose contract has
                                                                                                expired, there may need to be collective bargaining on the Furlough
                                                                                                Plan and on closure. For these employees, what occurs during
                                                                                                closure will depend on the outcome of negotiations. (8/26/09)
                                                                                               University of California professional librarians represented by the
                                                                                                American Federation of Teachers (AFT) will begin participating in the
                                                                                                university's furlough-salary reduction program this month, UC
                                                                                                officials announced today (10/2/09).

Senior Management Group (SMG)                                                                  All members of the Senior Management Group (SMG) will be subject
                                                                                                to the plan regardless of the exclusions listed above, for example,
                                                                                                senior managers at the Medical Centers. (Revised 9/3/2009)
                                                                                               The senior UC officials who volunteered to have their salary reduced
                                                                                                by 5 percent will have their salaries reduced by a total of 10 percent.
                                                                                               All SMG members will be provided only 10 furlough days regardless
                                                                                                of their respective salary reduction level.
                                                                                               The salary band level is determined for SMG members on the same
                                                                                                basis as for other affected employees — by using the January 2009
                                                                                                salary. (For example, if an SMG member falls into Salary Band 5, the
                                                                                                resulting salary reduction would be 8%, with 10 furlough days.)
                                                                                               The salary reduction is applied to SMG members regardless of fund
                                                                                                source or other furlough exemptions. For example, SMG members at
                                                                                                Medical Centers are affected; SMG members with extramural
                                                                                                funding are affected.
                                                                                               SMG members at Lawrence Berkeley National Laboratory are NOT

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                                                                                                  affected by the furlough/salary reduction plan due to DOE contract
                                                                                                  requirements.
                                                                                                 Individuals in Acting or Interim SMG appointments are not subject to
                                                                                                  the special provisions for SMG members. For example, an Acting
                                                                                                  SMG would not be limited to a maximum accrual of 10 furlough days.
                                                                                                  This is consistent with the way Acting and Interim SMG members are
                                                                                                  treated under other HR policies.
                                                                                                 Senior Management Supplemental Benefit Program contributions are
                                                                                                  determined as a percentage of pay received by the employee; they
                                                                                                  will be reduced as pay is reduced under the furlough plan. (Revised
                                                                                                  10/9/09)

MSP Staff Physicians                  VCHS submitted a request to the Chancellor to             The Plan will apply to Staff Physicians who are working in regular
                                       exempt MSP Staff Physicians from the plan.                 staff appointments. Their base pay will be subject to the reduction,
                                       Chancellor approval received 9/21/2009.                    and the non-base and incentive components of their pay will be
                                                                                                  excluded from the reduction. This is consistent with how the Plan will
                                                                                                  apply to Health Science Compensation Plan faculty. Application of
                                                                                                  the Plan to Staff Physicians who are contract employees will depend
                                                                                                  on the terms of the individual contracts. (7/21/09)

Employees on individual employment    9/1/09: Email sent to HR Managers regarding               This will depend on the terms of the contract. The Plan excludes
contracts                              contract employees on Jenni Liebman’s list:                employees whose participation is precluded by law. Employees with
                                      Contract employees will be subject to the salary           contracts that cannot be changed unilaterally by the University will
                                       Reduction /Furloughs. Please note that we have not         be asked for a voluntary salary reduction appropriate for their pay
                                       yet included MSP Physicians and Dentists on this list      band. Human Resources will work with the Office of General Counsel
                                       as we are in the process of requesting an exemption        to develop guidelines for how to handle these situations. (7/21/09)
                                       for these title codes due to their direct patient care
                                       responsibilities. Contract employees not on excluded
                                       funds will be subject to the salary reduction/furlough
                                       plan. Managers and supervisors will then need to talk
                                       with the contract employee to determine which
                                       option will be implemented. Indicate the following for
                                       each employee listed and we will forward the
                                       information to Central HR:
                                       OPTION 1) If the contract amendment is the selected
                                       method, please send a copy of the contract
                                       amendment to Evelyn Hidalgo.
                                       OPTION 2) If the contract is to be terminated at an
                                       earlier date than indicated on the current contract,
                                       please let Evelyn know.

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                                           OPTION 3) If the contract is to be terminated now
                                          Individual employment contracts will be revised
                                           consistent with provisions in current contracts
                                           governing compensation and changes in salary. The
                                           revision will reflect the application of the Salary
                                           reduction/Furlough Program for the period Sept. 1,
                                           2009 through Aug. 31, 2010. The revision will be
                                           summarized in an amendment to the contract and
                                           signed by both the employee and the University.
                                           (8/30/09)
Partial-Year Career (PYC) appointments                                                            A Partial-Year Career appointment, as defined in the staff personnel
                                                                                                   policies, is established to accommodate foreseeable seasonal
                                                                                                   fluctuations in staffing, budgetary, operational, or other needs. A PYC
                                                                                                   appointment contains regularly scheduled periods, not to exceed
                                                                                                   three months per calendar year, during which the individual remains
                                                                                                   an employee but is not at work. PYC appointees are subject to the
                                                                                                   Furlough Plan. PYC appointees will have their salary reduced and be
                                                                                                   required to use the furlough time allotted under the Furlough Plan
                                                                                                   during the period they are at work. That is, PYC employees will
                                                                                                   participate in the Furlough Plan during the time they are working and
                                                                                                   will not participate during the time they are on PYC furlough.
                                                                                                   Therefore, their regular PYC furlough cannot be used to meet the
                                                                                                   requirements of the Furlough Plan. A PYC employee whose pay is
                                                                                                   spread over 12 months will be subject to the percent pay reduction
                                                                                                   and should schedule the use of any flexible furlough time during the
                                                                                                   period he or she is working. (9/3/09)




SALARY REDUCTION
INTERCAMPUS TRANSFER:                                                                             An employee's full-time salary rate, as of January 1, 2009 (or the hire
                                                                                                   date, if later), will be used to determine the salary band. Inter-
What happens when an employee                                                                      campus transfers should have no change in their percent pay
changes campuses and their salary goes                                                             reduction due to promotion, merit pay or other increases in
up to a higher tier under the program?                                                             compensation. Local Payroll processers are familiar with the
                                                                                                   necessary forms to ensure continuity of information from one
                                                                                                   location to another. (9/15/09)


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SALARY & FURLOUGH DAYS:                 Employees will receive the allotted number of furlough days
                                         specified for their salary band in hourly increments each month, and
How do the furlough days and salary      their pay will be reduced by a corresponding percentage in even
reduction correspond to each other?      increments each month during the 12-month Plan period. For
                                         example, an employee whose salary is within Salary Band 2 ($40,001
                                         - $46,000) is allotted 13 furlough days off and will receive a 5% salary
                                         reduction, with the salary reduced accordingly for each pay period
                                         for 12 consecutive months. (7/21/09)

SALARY FIGURE DETERMINATION:           An employee's full-time salary rate, as of January 1, 2009 (or the hire
                                       date, if later), will be used to determine the salary band. This is
What salary figure is being used to    consistent with the methodology used to determine salary bands for
determine the applicable salary band   employee medical contributions. The salary rate is defined as the
for the salary reduction? What         monthly salary the employee is appointed to receive under an
elements of pay are included? As of    academic, nonacademic, and/or administrative title payable through the
what date?                             University. This includes such things as stipends. It does not include:

                                               overtime payments,
                                               shift or other differential pay,
                                               consulting fees or payments in lieu of private practice,
                                               general assistance "by-agreement" payments,
                                               compensation for extension teaching,
                                               any remuneration received which is in excess of 100% of full-
                                                time equivalent of your regular and normal position, and
                                               perquisites and any bonuses or other special compensation.
                                                (7/21/09)

TYPES OF PAY REDUCED:                  Compensation subject to the Plan includes base pay, similar forms of
                                       regular pay and stipends. The following types of pay will NOT be
What types of pay will be reduced      reduced under the plan:
under the Plan?
                                               Pay for summer session teaching
                                               Summer additional compensation
                                               Teacher-University Extension (UNX payments)
                                               BYA salaries
                                               Overtime
                                               Shift differential
                                               Time on call
                                               Bonus pay *
                                               Incentive pay *
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                                                                                                              Terminal vacation pay
                                                                                                              Severance pay
                                                                                                              Workers' Compensation supplement
                                                                                                              Health Sciences Compensation Program (Y and Z components
                                                                                                               only)
                                                                                                              Pay associated with Extramural Funds (fund group EXTRMFUR)

                                                                                                       * Many categories of bonus and incentive pay have been cancelled or
                                                                                                       deferred by The Regents.

                                                                                                       Analysis of pay categories continues to be reviewed. More detailed
                                                                                                       information about how different types of pay will be impacted will be
                                                                                                       made available prior to implementation. (9/2/09)
Will the reduction be spread out                                                                           The reduction will be spread out equally over the Plan's term.
equally over the Plan's term?                                                                               (7/21/09)
SALARY COMPRESSION:                                                                                        In response to the many requests for a finer leveling approach, the
                                                                                                            Plan was designed with multiple cost reduction tiers ranging from
Salary compression will become a                                                                            4 to 10 percent. Due to the nature of any graduated plan, there
factor for those employees who are                                                                          will be differentiating impacts for those near the tier thresholds.
paid at or near the different thresholds.                                                                   However, it should be understood that the Plan is temporary and,
How will the University address this?                                                                       at this time, intended to be in force for only twelve months.
                                                                                                            (7/21/09)
FALLING BELOW PAY RANGES:                                                                                  The Plan is only intended to last for twelve months and it is
                                                                                                            understood that it may cause some employees to fall, temporarily,
The cost reductions may cause some                                                                          below their pay range. (7/21/09)
employees to fall below their official
pay ranges. How will this be addressed
considering UC policy that employees
are paid within range?
VOLUNTARY PAY CUT:                                                                                         Actions such as this would undermine the integrity of the Plan
                                                                                                            which is to help the University cope with and address the
Will employees be allowed to take a                                                                         unprecedented drop in state funding for the fiscal years of 2008-09
voluntary pay-cut prior to the Plan's                                                                       and 2009-10. Also, a voluntary pay reduction would be considered
implementation in order to fall into a                                                                      permanent, and not subject to automatic reversal at the end of the
lower reduction threshold?                                                                                  Plan's term. Management should not encourage or allow these
                                                                                                            types of pay changes. (7/21/09)

OVERTIME:                                    With their supervisor's approval, non-exempt                 1) Overtime pay that is derived as a percentage of base pay will be
                                              employees can work overtime. Overtime is approved             derived as a percentage of the pre-reduced rate of pay. (Revised
1) How will overtime pay be calculated        strictly for business necessity and only as needed for        (8/5/09)
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under the Plan?                                  compelling circumstances. The approval of overtime          2) No, time off on furlough days is not counted as hours worked
                                                 is not intended to compensate employees for salary           and would not be included in determining whether overtime is to
2) Are furlough days considered "hours           reductions resulting from the salary                         be paid. For example, an employee who works four 8-hour days,
worked" for the purpose of                       reduction/furlough plan. Overtime approved and               takes one 8-hour furlough day, and then works an additional 6
determining whether overtime is paid             used during the salary reduction/furlough plan will be       hours during that week would be compensated at the straight-time
during a week?                                   subject to post-audit at UC San Diego and at the             rate for the 6 hours because he/she had not met the over 40-hour
                                                 Office of the President to review its appropriateness.       threshold for the premium overtime rate. (8/26/09)
3) Are non-exempt employees subject              (8/30/09)
to the salary reduction/ furlough
program allowed to work overtime?
MERIT INCREASES:                                                                                             The employee's pre-reduced salary will be maintained in the
                                                                                                              payroll system while the Plan is in effect. A merit increase would
How do we handle a merit increase                                                                             apply to the pre-reduced salary, then the increased salary would
received during the reduction period?                                                                         be reduced by the applicable rate. The number of furlough days
                                                                                                              and the corresponding percent pay reduction will not be adjusted
                                                                                                              due to salary changes. Details about how to apply a merit increase
                                                                                                              in the payroll system will be addressed in implementation
                                                                                                              guidelines. (7/21/09)
NEW HIRE RATES:                                                                                              A new hire would be set up at a permanent rate, which would then
                                                                                                              be reduced by the applicable furlough rate. Details about how to
Will there be guidelines addressing                                                                           set-up a new hire in the payroll system will be addressed in
how new hire rates shall be set during                                                                        implementation guidelines. (7/21/09)
this period? At a permanent rate and
then reduced?
OFFER LETTERS:                                    UCSD Furlough Language for Offer Letters:                 Yes, it is recommended that the campuses include language in all
                                                   http://som.ucsd.edu/node/542                               offer letters, including offer letters to the Senior Management
Should campuses include language in                                                                           Group, which informs the candidate of the salary reductions under
their offer letters in anticipation of the                                                                    the Plan. (7/21/09)
Plan?
VACATION PAYOUT:                                                                                             Terminal vacation pay will be calculated based on the separating
                                                                                                              employee's pre-reduced rate of pay. (7/21/09)
How will the Plan impact the payout of
vacation pay for an employee who
leaves work while the Plan is in place?
EXEMPT EMPLOYEE SALARY:                                                                                      The FLSA exemption test for salary is $455 per week. For most
                                                                                                              employees, this salary test is mandatory. Given the amount, it is
Are there any FLSA consequences if the                                                                        unlikely any existing FLSA exempt employees at the University will
salary of an exempt employee                                                                                  fall below the minimum salary exemption threshold through the
(whether full-time or part-time) falls                                                                        pay reduction portion of the Plan. (8/26/09)
below the FLSA exempt test minimum
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as a result of the salary reduction under
the Furlough Plan? Should the Plan
ensure that exempt employees' salaries
are not reduced below the exempt test
minimum?
LIMITED EMPLOYEES:                           Yes. Furlough hours will count towards the 1,000
                                              hour rule since you will be on pay status. (9/22/09)
I am a limited employee and expected
to be on pay status for less than 1,000
hours in a 12-month period. I am
included in the salary reduction/
furlough plan. Will my furlough time
count towards the 1,000 hours?
EXTRAMURAL SPLIT FUNDED                      If they are subject to the salary reduction/ furlough
EMPLOYEES:                                    plan, split-funded employees' pay will be reduced
                                              proportionate to the affected funding source.
Are extramural split-funded employees         (8/30/09)
subject to the salary
reduction/furlough plan?
SALARY INCREASES & DECREASES:                                                                          The number of furlough days will not be adjusted due to salary
                                                                                                        changes throughout the year; it will remain the same until Aug. 31,
What will happen if my salary increases                                                                 2010.
or decreases during the year?
INTERCAMPUS TRANSFER:                                                                                  An employee’s full-time salary rate, as of Jan. 1, 2009 (or the hire
                                                                                                        date, if later), will be used to determine the salary band. Inter-
What happens when an employee                                                                           campus transfers should have no change in their percent pay
changes campuses and their salary goes                                                                  reduction due to promotion, merit pay or other increases in
up to a higher tier under the program?                                                                  compensation. Local payroll processers are familiar with the
                                                                                                        necessary forms to ensure continuity of information from one
                                                                                                        location to another. (9/15/09)

FACULTY MERITS & PROMOTIONS:                                                                           There will be no change to faculty merit awards for July 2009 or to
                                                                                                        the 2009-10 academic review cycle with actions effective July, 2010.
Will faculty merits and promotions be                                                                   The Provost and Academic Senate Chair will convene a joint
affected by a salary reduction plan?                                                                    Academic Senate/Administration group in September 2009 to
                                                                                                        consider any possible temporary changes in future Academic Review
                                                                                                        Cycles beginning with the 2010-11 review cycle.

SENIOR LEADERS’ SALARY CUT                                                                             Senior UC leaders, including the President, all Executive and Senior
                                                                                                        Vice Presidents, the General Counsel and Vice President-Legal Affairs,
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Will senior leaders who took a 5                                                                       all Chancellors and Executive Vice Chancellors, volunteered to have
percent pay cut earlier this year face                                                                 their salaries reduced by 5 percent beginning July 1, 2009. With the
further reductions under the                                                                           Regents approval of the furlough/salary reduction plan, the
furlough/salary reduction plan?                                                                        voluntary 5 percent reduction for this group ended effective
                                                                                                       September 1, 2009, and the senior leaders converted to participating
                                                                                                       in the furlough/salary reduction plan (with 10 furlough days).
                                                                                                       (10/9/09)

INCENTIVE AWARDS                                                                                     Because incentive awards are made in recognition of performance
                                                                                                      and quality of work, and are not necessarily related to hours worked,
The Regents have acted to cancel or                                                                   un-reduced salary should be used in calculations of bona fide
defer many bonus and incentive                                                                        incentive plans. The payroll release to implement the furlough/salary
payments, but some incentive awards                                                                   reduction does not include incentive pay codes in those being
will still be paid during the term of the                                                             reduced, and the calculation of incentive award amounts occurs
furlough plan. How will the                                                                           outside of the payroll system. (10/9/09)
furlough/salary reduction plan impact
the calculation of these incentive
awards?


FURLOUGH DAYS
How will furlough days be scheduled?                                                                 Campuses will have the flexibility to establish local procedures. Some
                                                                                                      or all furlough days may be formally scheduled by a campus, division
                                                                                                      or department. Employees should be given advance notice of these
                                                                                                      closure days. Any leftover furlough days that have been allotted to
                                                                                                      the employee may be discretionary days off with agreement from
                                                                                                      the employee's supervisor. In practice, furlough days will be tracked
                                                                                                      in the payroll system. To the extent employees are given discretion
                                                                                                      to schedule some or all of their furlough days, the intent is for the
                                                                                                      days to be used each month as the days are accrued during the 12
                                                                                                      months the Plan is in effect. (Revised 8/5/09)

How will the furlough days be kept             UCSD will track furlough days PPS and the summary    At most locations, the payroll system will be used to track the accrual
track of?                                       can be found on LASR                                  and use of furlough days. The appropriate number of furlough hours
                                               Vacation bank will be used to administer the time     will be added into a furlough bank each month. For example, a full-
                                                off. Furlough days will be kept separate from the     time employee in Salary Band 4 will accrue approximately 12 hours
                                                employee’s vacation bank. Unused furlough days at     of furlough time a month (1 1/2 days) for a total of 18 days during
                                                the end of the program will be eliminated.            the 12-month term of the Plan. Furlough hours will be subtracted in
                                                                                                      the system when they are used. Campuses will also use local leave
                                                                                                      tracking systems to monitor the use of furlough days. (Revised
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                                                                                                          8/5/09)
MAX VACATION ACCRUAL:                                                                                    Furlough days are not vacation days. They are days off of work that
                                                                                                          correspond to a reduction in pay. Therefore, there is no change to
What if an employee reaches his/her                                                                       current policies and procedures regarding the accrual of vacation
maximum vacation accrual?                                                                                 time. (Revised 8/5/09)
ACCUMULATING FURLOUGH DAYS:                                                                              Any furlough days that are in excess of those used for campus
                                                                                                          closures are intended to be used on a monthly basis spread over the
Can an employee make arrangements                                                                         course of the furlough period. However, accrued furlough days may
with his/her supervisor to accumulate                                                                     be saved up and used in blocks prior to the end of the furlough
furlough days to use all at once during                                                                   period with the supervisor's agreement. (8/5/09)
or at the end of the furlough period?
ADVANCEMENT OF FURLOUGH DAYS:             Campus closure dates                                           If an employee has not yet accrued sufficient furlough time to cover
                                           During the 2009 holiday season, UCSD (excluding the           mandated closures, the employee may use furlough time before it
Can employees use furlough days in           hospitals and clinics) will officially close for 16 days     has actually accrued with the supervisor's approval. There is no
advance during an extended campus            between Saturday, Dec. 19, and Sunday, Jan. 3.               maximum amount of furlough time that may be advanced, except
closure period?                            The closure period includes 4 university-paid                 that it will be capped at the employee's allotted number of days per
                                             holidays (Dec. 24, 25 and 31, and Jan. 1). Six days          his/her salary band. If an employee will not accrue sufficient furlough
                                             (Dec. 21, 22, 23, 28, 29 and 30) are not paid                time over the Furlough Plan term to cover the mandated closure
                                             holidays, and non-represented academics and staff            days, the employee may use vacation leave in conjunction with
                                             who are covered by the furlough plan will be                 furlough time for mandated closures. For example, if an employee
                                             required to use furlough days to cover the time off.         will accrue a total of 5 furlough days over the Plan term, and the
                                           Furlough days may used before they are accrued.               campus has 6 mandated closure days, the employee will use the 5
                                           Non-represented academics and staff who do not                furlough days and can use vacation leave for the 6th closure day.
                                             participate in the furlough plan may use accrued             (8/26/09)
                                             vacation, compensatory time off or leave without
                                             pay for the 6 closure days that are not paid holidays.
                                             For exclusively represented employees, closure days
                                             will be handled in accordance with the existing
                                             contract provisions and are subject to discussion
                                             and/ or collective bargaining where applicable.

                                          Other closures by units
                                           Departments, divisions, and other work units may
                                             close their operations with approval from their
                                             respective vice chancellors.
                                           Departments must announce closures to all affected
                                             staff at least 30 days in advance of the closures.
                                           In all cases, organizational areas that plan to close
                                             where staff are affected must notify the Employee
                                             Relations unit of Staff Human Resources.

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                           Operational areas have management discretion to
                            operate on selected work days with reduced
                            staffing.
                           When staff are mandated not to report to work, the
                            same procedures and provisions that apply to
                            closures also apply to operating on a "skeletal
                            staffing" basis
                           Any closures or reduced services must not
                            negatively impact teaching, student advising, and
                            contracts and grants activities and must be managed
                            by unit managers and department chairs.

                        POST DOCS
                         Postdocs are excluded from the salary
                           reduction/furlough plan. During the 2009 holiday
                           campus closure, postdocs in closed department/unit
                           will be required to use six days of "time off" or leave
                           without pay, or will be handled in accordance with
                           the exclusively represented contract provision, if
                           one is in effect at the time. (Jennifer Oh, 9/11/09)

                        UCSD HOLIDAY CLOSURE AND THE UNIONS
                           Because there is no labor contract in effect at this
                            time for CX, RX and TX, University attorneys are
                            concerned that the UC's legal obligation to bargain
                            with CUE and UPTE could impede some plans for
                            our campus holiday closure ( as well the holiday
                            closure plans at other locations ).
                            Pending questions at this time appear to be:
                            What happens if a CX, RX, TX employee does
                                not want to use vacation time during the
                                holiday closure?
                            Is the only option available to the employee
                                LWOP?
                            Can the employee work during the holiday
                                closure instead of having to take vacation or be
                                on a LWOP?
                            If there is no way for the employee to work
                                during the closure, is the UC obligated to pay
                                the employee during the closure?

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                                           LR thinks it would be prudent to develop a back-up plan
                                           if your department is closing, that prepares your VC area
                                           for the possibility that we may be asked if we can
                                           provide work for CX, RX and TX during our campus
                                           holiday closure. There is no deadline, at this time, for the
                                           preparation of such back-up plans. (Kerry Donnell,
                                           9/18/09)
RECORDING FURLOUGH DAYS:                                                                                   Generally, furlough time should be recorded the same as vacation -
                                                                                                            in one-day increments for exempt employees, ¼ hour increments for
Must furloughs be taken as full days off                                                                    non-exempt employees. Campuses may establish local procedures
or can they be taken in hourly                                                                              for recording furlough time. (7/21/09)
increments?
UNUSED FURLOUGH DAYS:                                                                                      Employees are expected to use all of their furlough days during the
                                                                                                            Plan term. Furlough time is not like vacation time or comp time that
What happens to unused furlough time                                                                        can be banked for later use. Furlough time that is not used as
at the end of the program?                                                                                  expected during the Plan term will expire at the end of the Plan term
                                                                                                            and is not carried forward. (8/5/09)

CALLED INTO WORK:                                                                                          If the designated day is scheduled as a campus closure day, an
                                                                                                            employee cannot be called in to work unless required for critical
Can an employee be called in to work                                                                        business need.
on a designated furlough day?                                                                              If the designated day is scheduled by the employee as a floating
                                                                                                            furlough day, an employee cannot be called in to work unless there is
                                                                                                            a business necessity and the employee is given reasonable advance
                                                                                                            notice. However, every effort is to be made by the employee's
                                                                                                            supervisor to find an alternative solution to having the employee
                                                                                                            come in to work. If an employee is required to work on a floating
                                                                                                            furlough day, every effort is to be made to reschedule another
                                                                                                            furlough day as soon as possible at the convenience of the employee
                                                                                                            and with the supervisor's agreement. (8/5/09)

TRAINING DURING FURLOUGH DAY:                                                                              If an employee comes in for work-related training or education, it is
                                                                                                            considered a work day and not a furlough day. An employee who
Can an employee voluntarily come to                                                                         wants to take advantage of a training or educational opportunity on
work on his/her floating furlough day                                                                       a day that he/she scheduled as a furlough day must schedule an
to take advantage of training or                                                                            alternative furlough day. (8/5/09)
educational opportunities?
GETTING CALLED INTO WORK:                                                                                  That day becomes a work day, and the employee should schedule
                                                                                                            another furlough day as soon as possible thereafter as a
What happens if an employee plans to
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take a furlough day but is called into        replacement. (8/26/09)
work on an emergency and actually has
to work that day?
WORKING EXTRA HOURS:                        Managers and supervisors should not require exempt or non-exempt
                                             employees to work extra time during the week a furlough day is
Can managers or supervisors ask              scheduled. Requiring employees to work extra time to make up for
employees to work additional hours to        time away from work is contrary to the Regents' intent and the spirit
make up for time away from work on a         of the furlough/salary reduction plan. The plan provides employees
furlough day?                                with non-working furlough days and a corresponding reduction in
                                             salary. (9/3/09)

USE OF FURLOUGH DAYS:                       Managers and supervisors must manage employees furlough time to
                                             ensure that it is all used by the end of the plan term. It is strongly
My supervisor says there is too much         recommended that supervisors work with their employees to
work in our department, and it may not       develop individual furlough schedules at the outset of the plan term.
be possible to schedule all my furlough      Staff employees with concerns about the scheduling of furlough time
days during the term of the furlough         should contact their local Human Resources office; academic
plan. What should I do?                      employees should contact their local Academic Personnel office.
                                             (9/3/09)
CONSULTING WORK/INDEPENDENT                 Employees are permitted to work for others. However, under state
CONTRACTOR:                                  conflict-of interest law, employees are, under certain conditions,
                                             required to disqualify themselves from making, participating in, or
On their furlough days, are staff            influencing University decisions that will have a financial effect on
employees permitted to do consulting         the sources of their income. The employee might not be able to give
work in an area that is similar to their     advice, make recommendations or communicate with the University
work with the University? What about         decision-maker about matters concerning the company for whom
working with the same vendors                the employee works. This may affect an employee's ability to
/companies with which the University         perform his or her job duties. An employee should consult with his or
conducts business?                           her supervisor if there are concerns about outside employment
                                             interfering with the employee's ability to perform his or her job
                                             duties. Also, employees must not provide services to a vendor if
                                             those services are related to a contract between the University and
                                             the vendor. (9/3/09)
H VISA TO PERMANENT RESIDENCY:              Foreign national employees working pursuant to H-1B, H-2, H-3 and
                                             E-3 visas are exempt from the requirements of the Plan because any
Will an employee with an "H" visa be         change in the terms of and conditions of their employment requires
subject to the Plan requirements if he       additional submissions for federal agency approval. (Such restrictions
or she has applied for permanent             do not apply to H-4 visa holders who are therefore subject to the
residency status?                            Plan.) If an employee working under an H-1B, H-2, H-3 or E-3 visa has
                                             filed an application for permanent residence that is pending, the visa

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                                                                                                       wage requirements would still apply and the employee would remain
                                                                                                       exempt from the Plan until the visa petition expires or is withdrawn
                                                                                                       by the University. (9/3/09)
Is it possible that some employees may                                                                An employee paid with a stipend may not receive any automatically
receive a pay-cut but not any furlough                                                                 accrued furlough days if the rest of his/her pay is excluded from the
days?                                                                                                  Plan, e.g., because the employee is paid from extramural funds and
                                                                                                       receives a stipend for the amount of his/her pay over the NIH cap. In
                                                                                                       such cases, the percentage of the stipend amount to the employee's
                                                                                                       full-time rate of pay that would otherwise be subject to the Plan
                                                                                                       should be used to manually calculate the number of furlough days
                                                                                                       owed the employee. This percentage would be multiplied by the
                                                                                                       employee's total number of furlough days associated with his/her
                                                                                                       salary band. (9/15/09)
PER DIEM & VARIABLE EMPLOYEES:                                                                        Many variable time employees receive vacation time and arranging
                                                                                                       furlough time for variable time or per diem employees should work
How do I manage furlough time for                                                                      similarly. When an employee is provided with their schedule for the
variable time or per diem employees                                                                    coming pay period such as the next Bi-Weekly, they will request
since they work "as needed?"                                                                           furlough time in lieu of work for some of the offered hours.
                                                                                                       Managers and supervisors must manage employees' furlough time to
                                                                                                       ensure that it is all used by the end of the plan term. Once the
                                                                                                       furlough time has been taken it can be reported in the Payroll system
                                                                                                       and the employee will receive pay for the hours taken. (9/15/09)

INDEPENDENT CONTRACTOR WORK:              No. An individual may only be retained for services as
                                           an independent contractor if a determination has
As a university employee included in       been made that an employer-employee relationship
the salary reduction/ furlough             does not exist. Since you are a current employee, an
program, am I allowed to work for          employer-employee relationship exists. (9/21/09)
another university department as an
independent contractor on my furlough
days?
NOT ENOUGH VACATION ACCRUED :             No. If you do not have enough vacation accrued to
                                           cover the 6 campus closure days an exception to
I am a non-represented employee            Personnel Policies for Staff Members 43–J has been
exempt from the salary reduction/          granted. For the purpose of curtailment leave,
furlough plan and will not have enough     employees with insufficient vacation accrual balances
vacation hours accrued to use during       may use up to 6 days of vacation credits prior to their
the mandated holiday closure period.       actual accrual. (9/17/09)
Will I have to take leave without pay?


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EXEMPT EMPLOYEES:                          Exempt employees who do not have enough accrued
                                            furlough hours to take a full day off will need to
I am an exempt employee accruing one        report vacation hours to equal a full day increment.
and one-half furlough days per month.       Blending of accrued vacation hours with furlough
Can I take two days off using my            hours is permitted. (9/17/09)
furlough accrual?
SICK ON FURLOUGH DAY:                        During a mandated furlough period such as the
                                              December holiday closure, you cannot substitute
If I become sick on a furlough day, may       sick leave for furlough leave. However, if you are on
I charge the absence to sick leave            a voluntary furlough day(s) and become ill, you may
instead of using accrued furlough             substitute the use of sick leave provided you submit
leave?                                        to your supervisor a note from your health care
                                              practitioner upon your return to work. (9/17/09)
DEPARTMENT OPEN DURING HOLIDAY               If your department has received permission to
CLOSURE:                                      remain open during the December holiday closure
                                              and you are included in the salary
My department needs to remain open            reduction/furlough plan, you may use accrued
during the December holiday closure           furlough days and/or vacation with the approval of
however I want to take time off. Will I       your supervisor. If you are not included in the salary
be allowed to use vacation?                   reduction/ furlough plan, you may use accrued
                                              vacation with the approval of your supervisor.
                                              (9/17/09)
SHUTTING DOWN ON NON-MANDATED                Departments, divisions, and other work units may
CLOSURE DAYS                                  close their operations with approval from their
                                              respective vice chancellor. (Revised 9/17/09)
Will my department be allowed to shut
down on days not mandated by the
Chancellor?
TRANSFERRING TO ANOTHER POSITION             No. Accrued furlough hours will transfer with you to
NOT AFFECTED BY FURLOUGH PLAN:                the new position and must be used, with your
                                              supervisor’s approval, by Aug. 31, 2010. (8/30/09)
I’m subject to the salary
reduction/furlough program and am
considering transferring to a position
not affected by the salary
reduction/furlough program. Will
accrued furlough hours be lost?




Page 20 of 27
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DECEMBER EARNINGS (ACADEMICS):               No. Non-represented academics and staff who are
                                              covered by the furlough plan and who are required
Will my December earnings be reduced          to use 6 furlough days during the holiday closure will
by the 6 mandated furlough days               not incur 6 unpaid work days loss to their income for
during the holiday closure?                   that time period. The salary reduction/furlough
                                              program will be reducing affected employees' salary
                                              by anywhere from 4% to 10%, dependent upon their
                                              salary. This reduction will be on a monthly basis.
                                              Therefore, even though there are 6 furlough days
                                              mandated between Dec. 19 and Jan. 3, your pay will
                                              not be reduced more than the percentage assigned
                                              to your salary band. (8/30/09)

FLEXIBLE WORK ARRANGEMENT:                   Employees affected by the salary reduction/furlough
                                              program will still be able to work alternative work
Are employees allowed to have flexible        schedules and/ or telecommute with their
work arrangements?                            supervisor's and department head's approval.
                                              (8/30/09)

FURLOUGH DAYS FOR VACATION                   With your supervisor’s approval, accrued furlough
                                              days may be applied towards vacation time off. If
I'm subject to the salary                     your vacation is longer than the number of furlough
reduction/furlough plan and want to           days accrued, the remaining time will need to be
use my furlough days for vacation. Am I       charged to accrued vacation or accrued
allowed to do that?                           compensatory time (if eligible to accrue).
                                              Advancement of furlough days is only allowed for a
                                              mandated campus closure or approved
                                              department/division/work unit closure. (10/2/09)
MONTHLY FURLOUGH ACCRUAL                     The number of furlough hours accrued is
                                              determined by the salary band applied to your full
How many furlough hours will I accrue         time equivalent annual salary. Furlough accruals are
each month?                                   based on a factor leave accrual. Therefore the
                                              furlough accruals will vary each month depending on
                                              the number of work hours in the month. (10/12/09)




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ALTERNATIVE WORK SCHEDULES                  Nothing about a workweek is different except employees now have
                                             banks of furlough hours to schedule in consultation with their
For employees affected by the salary         supervisors. Accrual of furlough days is based on an 8 hour day; that
reduction, will their holidays also be       is, 11 furlough days equals 88 furlough hours. So, an employee who
reduced? This will be important to           works five 8 hour days in a week will take an 8 hour day for a
know, particularly for employees on          holiday. A person who works four 10 hour days would take a 10
alternative schedules such a 4/40s and       hour day for a holiday. (10/9/09)
9/80s.



START PROGRAM
Will employees who are on START be        Employees participating in START will be excluded from the Plan if
subject to the Plan?                       their reduction in time under START is the same or greater than the
                                           reduction required for their respective salary band under the Plan.
                                           For example, if an employee in START currently has a 10 percent
                                           reduction in time, and is required to take an 8 percent reduction
                                           under the Plan (corresponding to 21 furlough days), the employee
                                           will be excluded from the Plan. (7/21/09)

                                          Employees whose START reduction is less than that required under
                                           the Plan will require individual handling (for example, an employee
                                           with a 5 percent START reduction who is required to take an 8
                                           percent reduction under the furlough Plan). , It is strongly
                                           recommended that departments work with employees in this
                                           situation to either increase the time reduction under START so that it
                                           equals or exceeds the Plan, or cancel START so that only the Plan
                                           would apply. Otherwise, the employee's payroll record will have to
                                           be adjusted manually, possibly every pay period, to affect the
                                           appropriate accrual of furlough time and corresponding salary
                                           reduction. Reports will be available to campus HR offices to identify
                                           START participants whose time reduction under START is less than
                                           the required reduction under the Plan. (Revised 8/5/09)


Will employees be permitted to choose     The START program continues to be in effect through June 30, 2010.
START before/after the proposals are       Employee participation is voluntary. In all cases, participation is
put into place?                            dependent upon the approval of the department head. (7/21/09)

What happens if my START program          START participants whose START contract expires before the close of
ends before the Plan period ends?          the furlough/salary reduction Plan will subsequently be placed on the
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                                            Plan. This will require manual processing. (7/21/09)

Are there advantages to being in START    No. The provisions for vacation and sick leave accrual and benefits,
rather than the Plan in terms of           including UCRP, are intended to be the same under both programs.
vacation and sick leave accrual and        (7/21/09)
benefit protections?



IMPACT ON BENEFITS (HEALTH & WELFARE)
MONTHLY INSURANCE PREMIUMS:               No. (7/21/09)

Will monthly health insurance
premiums be adjusted for the rest of
2009 if the furlough/salary reduction
drops employees into lower medical
plan salary bands?
DC PLAN CONTRIBUTIONS:                    Mandatory contributions to the DC Plan are a percentage of pay
                                           received by the employee, and they will be reduced as pay is reduced
How will mandatory DC Plan                 under the Plan. (7/21/09)
contributions be impacted by the Plan
(including UCRP members and Safe
Harbor)?
403(b) , 457(b) & DC PLAN:                1) If the voluntary contributions are being taken as a percentage of
                                           pay, they will be reduced. Contributions that are being made at a flat
1) How will voluntary contributions to     rate (for example, $100 per month) will not change. Employees can
the 403(b), 457(b) and DC Plan After       change their contribution elections at any time, subject to payroll
Tax plans be impacted by the Plan?         and processing deadlines. (7/21/09)
                                          2) No. (7/21/09)
2) Will employees with 403(b) Plan
loans be allowed to restructure their
loan terms?
MEDICAL PLAN CHANGE:                      No. There will be an opportunity to change medical plans for 2010
                                           during Open Enrollment in November. (7/21/09)
Will employees be allowed to change
medical plans mid-year following
implementation of the Plan?
SR. MANAGEMENT SUPPLEMENT PLAN:           These employer contributions are a percentage of pay received by
                                           the employee, and they will be reduced as pay is reduced under the
How will the senior management

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supplemental benefit program                Plan. (7/21/09)
contributions be impacted by the Plan?
CAP ACCOUNTS:                             No. (7/21/09)

Are CAP accounts being considered like
the University did in 1992 and 1994?
UCRP CONTRIBUTIONS:                       Both employer contributions and employee contributions to UCRP
                                           from April 15, 2010 through August 31, 2010 (or the end of the term
Will the employee contributions to         of the Plan) will be based on the employee's reduced salary. (8/5/09)
UCRP scheduled to begin in April 2010
be calculated on the employee's
regular salary or the reduced salary?
DISABILITY & LIFE INSURANCE:              Disability benefit payments for both the Short-term Plan and the
                                           Supplemental Plan will be based on an employee's unreduced salary
Will the reduction in salary have any      and premiums will continue to be based on an employee's
impact on an employee's disability or      unreduced salary. Basic life insurance coverage will continue at the
life insurance benefits?                   unreduced salary rate until January 1, 2010, at which time coverage
                                           will be based on the salary rate in effect at that time. Supplemental
                                           life insurance premiums and coverage will continue at the unreduced
                                           salary rate. These provisions are consistent with the START program.
                                           (8/5/09)

DEP CARE & HEALTH FSA:                    It depends. Generally, employees may not change or cancel elections
                                           to the Health or DepCare Flexible Spending Accounts mid-year.
Will I be able to change my Dependent      However, if a qualifying "status change event" occurs, IRS rules
Care or Health FSA election due to the     indicate that changes to participation and/or to contribution
furlough/salary reduction?                 amounts during the plan year may be made. The types of qualifying
                                           status change events under the Health FSA are different from those
                                           under the Dependent Care FSA. Additionally, the specifics of the
                                           status change event determine the type of changes allowed.
                                          For example, for the Health FSA, the only type of employment-
                                           related events which would qualify to make changes are those that
                                           affect eligibility for the plan. The University's specific furlough/salary
                                           reduction plan does not constitute a qualifying status change event
                                           since it does not impact eligibility for the plan.

                                            For the Dependent Care FSA, there is also no qualifying status
                                            change event as a direct function of the furlough/reduction in pay
                                            since it does not impact eligibility for the plan. However, under a
                                            Dependent Care FSA, if you change work schedules (including
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                                                                                                           changing from full-time to part-time status) and this results in
                                                                                                           changes to the hours of dependent care needed, a change to
                                                                                                           decrease the amount of the DepCare FSA is allowed. Similarly, if you
                                                                                                           change from one dependent care provider to another, you may
                                                                                                           change your election to increase or decrease the amount to match
                                                                                                           the new arrangement. Or, if you change to in-home dependent care,
                                                                                                           the election may also be changed (or cancelled if the new
                                                                                                           arrangement is for free care).

                                                                                                           Also, remember that both the Health and DepCare FSA plans include
                                                                                                           a "grace period" — this means you can use 2009 contributions for
                                                                                                           expenses incurred during the grace period from January 1 — March
                                                                                                           15, 2010. As always, there will be an opportunity to enroll for 2010
                                                                                                           during Open Enrollment in November. (Revised 9/15/09)

WORKERS’ COMPENSATION:                                                                                   If you work on a scheduled furlough day, you are no longer
                                                                                                          considered on furlough that day. The day would be considered a
Am I covered by workers'                                                                                  work day, subject to all relevant workers' compensation and
compensation or any other relevant                                                                        insurance coverage. The furlough day would need to be rescheduled.
insurance if I'm injured on campus, in                                                                    (9/15/09)
the course of work, on a furlough day?
LEAVE WITH PAY:                                                                                          Yes. The employee will receive an accrual of furlough days and a
                                                                                                          corresponding reduction in pay will apply to the pay they receive
Will the furlough Plan apply to an                                                                        while on leave. (7/21/09)
employee on a leave with pay?
LEAVE WITHOUT PAY:                          Furlough day accruals will be treated the same as           Employees who are on leave without pay at the time the furlough
                                             vacation and sick leave accruals. There is no credit for     Plan becomes effective on September 1, 2009 will be subject to the
Are employees who are on leave               furlough accrual for the period of time that an              furlough Plan beginning at the time they return to work until the end
without pay (such as disability, FMLA,       employee is on a leave without pay. (9/17/09)                of the Plan on August 31, 2010. (8/5/09)
personal, etc.) at the time the furlough
Plan becomes effective subject to its
requirements?

How are furlough days calculated for an
employee included in the salary
reduction/ furlough plan during a leave
without pay?
DISABILITY WAITING PERIOD:                  Yes. You are considered on pay status during furlough
                                             days. (8/30/09)
Can accrued furlough days be applied
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to the disability waiting period?
PREGNANCY DISABILITY                       In terms of "accrual" of furlough time, employees will accrue furlough
                                           time based on their hours on pay status. If an employee is on an unpaid
I am planning a 3-month pregnancy          leave of absence, he/she will not accrue furlough time during the unpaid
disability and family medical leave in     leave.
March 2010 when my baby is born.           In terms of the "use" of furlough time, broad general guidelines have
How will this impact my furlough days?     been established that provide flexibility for employees and managers to
Can I use furlough days to extend my       schedule furlough days, including the following:
time on pay status? What will happen        Employees are expected to use all of their furlough days during the
to the scheduled furlough day when my          Plan term.
location closes on April 16, 2010 (while    Accrued furlough days may be saved up and used in blocks prior to
I am still on leave)?                          the end of the furlough period with the supervisor's agreement.
                                            Furlough time that is not used as expected during the Plan term will
                                               expire at the end of the Plan term and is not carried forward.

                                           If an employee has accrued furlough time, she may use it at the
                                           beginning of her leave to extend her time on pay status. However,
                                           employees on unpaid leave should not be returned to pay status simply
                                           to use a furlough day during a mandated closure — they would continue
                                           on unpaid leave until they are released to return to work.

                                           If an employee has not yet accrued sufficient furlough time to cover
                                           mandated closures, the employee may use furlough time before it has
                                           actually accrued with the supervisor's approval. However, use of
                                           furlough time not yet accrued to maintain pay status during a disability
                                           leave of absence is not appropriate. (10/9/09)


PART-TIME EMPLOYEES
How will the Plan affect part-time          Part-time employees will be allotted furlough days and have their
employees?                                   salary reduced in proportion to their full-time equivalent salary. For
                                             example, an employee who has a 60% appointment and earns
                                             $60,000 per year ($100,000 full-time equivalent) is within Salary
                                             Band 5 that allots 21 furlough days and an 8% salary reduction, so
                                             the employee will receive 12.6 furlough days and a $4,800 salary
                                             reduction (8% of $60,000). (7/21/09)

EMPLOYEES WHO FALL BELOW 50%:               Benefits eligibility will not be negatively impacted by the Plan
                                             consistent with how START participants' benefits are protected. By
How will the Plan affect benefits            implementing the furlough through crediting of furlough days and a
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eligibility for part-time employees? Will      corresponding reduction in pay, employees time worked will not be
those career employees currently at 50         reduced in the payroll system. (7/21/09)
percent time fall to a lower benefit
eligibility level and lose their UCRP
vesting?




SEPARATION
UNUSED FURLOUGH DAYS:                        By policy, unused furlough days will expire at the end of the term of
                                              the Plan or upon separation of employment if earlier. Supervisors
If an employee separates from the             and managers should work with employees to schedule the furlough
University before using all of his/her        time prior to separation. Managers and supervisors have the
furlough days, will those days expire?        authority under policy to require the use of furlough time. (Revised
                                              8/5/09)

SEVERANCE PAY:                               If an employee is laid off or terminated during the furlough/salary
                                              reduction period, severance will be calculated on the employee's
Is severance pay to be calculated on an       pre-reduction salary. (7/21/09)
employee's pre-reduction salary or on
the reduced salary?




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