Topics to be Covered

1. University-yearPay Cycle ChangesEliminate Schedule II(Non-LEO Faculty) May 2009Dearborn CampusU Yr Schedule Chg Interchg Dearborn 05_09.ppt

2. Topics to be Covered • Overview of change • “Catch-up” Payments Made to Faculty • HR Appointment Data • Impact on Federally Sponsored Funding during Academic Year • Pay Cycle Comparison – Current and New • Example of Transition Year General Ledger (GL) Distribution • Resource Information

3. Overview of Change • Eliminate Schedule II pay cycle that was originated on 9/1/2001 • Reasons for change • University-year Design Group Recommendations • IRS Notice issued in July 2008, impacting deferred compensation status • Return to salary pre-payments for July and August for September 1st new hires • Pre-payments will be made in early September once the faculty member is on campus • Terminations, at the end of the academic year, will be paid through June 30th. Benefit coverage will end April 30th. • Salary for Fall Term will be paid July thru December • Salary for Winter Term will be paid January thru June • Prorations NO LONGER needed for effort, compensation rate or DBE changes effective September 1st or January 1st • Prorations, when needed, will be calculated on a “per term” basis.

4. “Catch-up” Payments Made to Faculty • Partial group of University-year faculty paid 2/12ths in December 2008 – Group 1 • Paid in calendar year 2008 due to deferred compensation impact of IRS Notice • University-year faculty to be paid 2/12ths in June 2009 – Group 2 • Will be paid in the same academic year as Group 1. • Conversion date to Schedule I for these two groups is 9/1/08 • Remaining University-year faculty on Leave without salary will be paid 2/12ths upon return from Leave

5. HR Appointment Data • JOB Data • Merit increases will be effective September 1st and will not be paid retroactive to July 1st • Effort changes effective September 1st will be retroactive to July 1st and processed at the previous academic year pay rate for July and August • Leaves of Absence with or without pay effective September 1st will be retroactive to July 1st and should be processed before July • DBE Data • University Year changes to Short Codes and distribution percentages effective September 1st will be retroactive to July 1st

6. HR Appointment Data (cont’d) • Pre-approved Promotions Process • HRRIS will process the pre-approved promotional appointment changes for regular, clinical and research faculty in June with the effective date of September 1st • University Year DBE Process • HRRIS will process the university year department budget earnings for the next academic year in June with the effective date of September 1st

7. Impact on Federally Sponsored Funding during Academic Year • Pre-payments in July and August • Will result in “blended pay rate” being used for Fall Term charges to the federal sponsor • DBE Data • Sponsored U-Yr Flag will be effective each Sept 1st to reflect the entire pay cycle for the academic year • General Ledger Account Values • Differentiate salary charged to federal sponsor during academic year

8. General Ledger Account Values • General Ledger Account Values will differentiate the charges to a federal sponsor (1/9th or 1/8th) from the charges to other funding sources over 12 months.

10. General Ledger Distribution for Transition Year • Example: A full-time faculty member has one appointment on the Dearborn campus and is partially funded by federal sources. The 9/1/08 compensation rate is $60,000. The 9/1/09 compensation rate is $72,000. The appointment is charged to the General Fund (120000) for 50% allocation and federally funded sponsored project (034000) for 50% allocation.

11. Resource Information • Payroll resource materials • In Interchange packet Four examples of pay and distribution prorations • On July 1, 2009, available on Payroll web site : http://www.finops.umich.edu/payroll/resources/admin/%252Funiversityyearappointmentinformation Additional proration worksheets