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You are here:Home / EPA Non-Faculty / EPA Non-Faculty Policies / Appointment Processing and Standard Order Instructions / EPA Non-Faculty Salary/FTE Change Standard Order (All Employees)

Posted to Website:07/14/2008

EPA Non-Faculty Salary/FTE Change Standard Order (All Employees)

CONTENTS

OVERVIEW AND PURPOSE OF ACTION

The EPAWeb Salary/FTE action is used to modify or correct an employee's base salary, supplement salary rate, and/or full-time equivalency (FTE). The action also permits changes to the budget accounts (salary sources) to which the individual's salary and benefits are charged.

  • If you need to accomplish a change to the salary sources only, you should use the EPAWeb Salary Distribution action.
  • If an employee's status is changing from temporary to permanent and includes changes to salary and FTE, this should not be treated as a Salary/FTE Change action only but instead processed as an EPAWeb Job Change action. The EEO Office should be consulted to assure compliance with relevant University EEO requirements.

DOCUMENTATION REQUIREMENTS (“STANDARD ORDER”)

The following are specific documentation requirements for EPAWeb Salary/FTE change actions. Your School/Division administrative approval chain may have additional documentation requirements beyond what is required by EPA Non-Faculty Human Resources.  Consult your Dean/Division HR staff if you have specific questions regarding any such additional requirements.

Notification Letter for FTE Changes and/or Salary Reductions

Whenever a permanent employee's FTE changes (up or down) or salary is reduced, a letter must be prepared and provided to the employee specifying the changed FTE and the new annual salary per the FTE. This letter is signed by the authorizing University official, usually a Department/Center Head or Dean/Division office official. Letter templates for these situations have been approved by the Office of Human Resources and University Counsel's Office as follows:

  • For FTE changes and/or salary reductions where the new FTE is .50 or greater, click here.
  • For FTE changes and/or salary reductions where the new FTE is .49 FTE or less, click here.

This letter, once acknowledged by the employee by signature, should be attached to the EPAWeb action. There is no required letter template for FTE and/or salary changes for EPA non-faculty temporary or student employees. But it is recommended that departments communicate such changes in writing to the affected employees and maintain a copy of this corresponence in the employee's departmental personnel file.

Notice Requirements to Employees for FTE Changes or Salary Reductions

If the reason for a reduction in FTE or salary is loss of funding and the employee's  "at-will" or term appointment includes a valid contingency clause that was communicated in writing, no advance notice is required but unless unfeasible, a minimum 30-day written notice is suggested.

Absent a loss of funding and a valid contingency clause, "at-will" employees in their 1st year of service require a 30 day written notice of such changes and "at-will" employees in their 2nd or greater year of service require a 90-day written notice. If you are contemplating decreasing the salary or changing up or down the FTE of any term appointment employee prior to term end absent a funding contingency provision and a loss of funding, please consult with EPA Non-Faculty Human Resources prior to implementing or communicating any proposed change.

FTE Changes Below .50 FTE That Trigger a Leave Payout

For permanent employees whose FTE is being changed to fall below the .50 FTE level, a payout of accrued leave is also required in accordance with normal leave payout policies as the employee will no longer be in leave earning status and therefore not eligible to retain leave balances. The leave payout will be accomplished using a lump sum payment action following completion of the salary/fte change action. The lump sum payment action must have attached documentation which supports the ending leave balances to be paid and the prior salary/fte change action should be referenced in comments. The supporting leave documentation is typically a printout from the University's TIM System. In these situations, the departments must calculate the leave payout amount which is the basis for the lump sum payment amount. For assistance in calculating any leave payout, contact EPA Non-Faculty Human Resources.

Out-of-Cycle Salary Increase Request and Notification Letter

When a salary change is being submitted outside the EPA Annual Raise Process (ARP) this is considered an Out-of-Cycle Salary increase.  For detailed information and requirements to process such increases, please refer to the Out-of-Cycle Salary Increase Requests for EPA Non-Faculty procedure. All of the forms referenced in this procedure must be attached to the EPAWeb action and when BOT and/or BOG approval is required, the originals must also be forwarded to EPA Non-Faculty Human Resources in hardcopy within the specified submission deadline dates to meet Board submission requirements of the Office of the Chancellor.

Once notified of formal approval by EPA Non-Faculty Human Resources, out-of-cycle salary increases should be communicated to the employee by an authorized Department or School/Division official in writing. A letter template for this purpose has been developed by the Office of Human Resources and is available by clicking here. A copy of this letter should be maintained in the departmental personnel file but does not need to be attached to the EPAWeb salary/fte change action.


BENEFITS IMPACTS OF FTE CHANGES

If a current permanent UNC-CH Employee has an FTE change, the employee's benefits may be affected. The appointing department should be aware of and discuss the benefits impacts of any FTE change with the affected employee to avoid any later misunderstandings regarding benefits eligibility. The following summarizes significant benefits issues related to employee FTE level:

  • Health Insurance: The University's contribution towards health insurance premiums ceases when FTE falls below the .75 FTE level. Below .50 FTE (less than half-time), the employee also loses eligibility to participate in the State Health Plan entirely although an optional 18-month COBRA continuation period is available during which the employee must assume the full cost of coverage.
  • State Retirement (TSERS or ORP): Below .75 FTE (less than three-quarter time), the employee is no longer eligible to participate in the State or University retirement plans including the associated University contributions. It should also be noted when the employee's FTE falls below this level, the applicable mandatory employee retirement contribution deductions to these plans also cease. Employees can continue to participate in the University's optional 403b supplemental retirement savings plan but this plan does not feature any University contributions.
  • Vacation and Sick Leave Accrural:  Below the 1.0 FTE level (less than full-time), the employee's annual and sick leave accrural is pro-rated based on the FTE level. Below the .50 FTE level, the employee is not eligible for any leave accrural and any unused leave must be paid out at appointment end. Leave payout should be accomplished by an EPAWeb lump sum payment action following processing of the applicable Job Change action.
  • Other Benefit Programs: Eligibility for various other University benefit programs are reduced or cease at the .75 and .50 FTE levels respectively. The benefits portion of the Human Resources web site may be consulted for specific eligibility information for each individual benefit or a Benefits Specialist can be contacted for assistance.

If the appointing department or the affected employee has questions regarding the benefits impacts of an FTE change, the department's assigned Benefits Specialist should be consulted in the Office of Human Resources. The affected employee should be encouraged to make contact with a Benefits Specialist as soon as possible. To identify your assigned Benefits Specialist, consult the HR Connect Tool on the web at http://hrconnect.unc.edu or call the HR Service Center at 843-2300 for a referral.


OTHER REMINDERS AND TIPS
  • The effective date of the action should match the effective date of the increase. If BOT and/or BOG approval is required, the effective date must be on or after the earliest effective date reflected in the EPA Out-of-Cycle Salary Request Submission Deadlines.
  • If the Change to FTE is indefinite and the EPAWeb system rejects the action when there is a blank field for the "Scheduled End Date" -- insert a dash in this field.
  • Whenever possible, the FTE Change action should be submitted one to two weeks prior to the effective date to ensure adequate time for review and approval at each level.

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