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Guidelines for the Salary Increase for Certain State Employees

Issued: Aug. 15, 2005
Updated: Aug. 14, 2015 – View Changes

FPP F.017

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Statewide Systems Operations & Payroll Policy USPS, SPRS, HRIS Help Desk (512) 463-4008

CAPPS Authorized Support Staff Help Desk (512) 463-CAPP (2277)

Contact lists: USPS; SPRS; HRIS; CAPPS Agency Support

Overview

Applicable to

  • State agencies
  • Texas Higher Education Coordinating Board

Summary

The 84th Legislature, Regular Session, provided appropriations for salary increases for state agency employees in fiscal 2016.

The Texas Comptroller of Public Accounts is providing this general information about the salary increases to be implemented in the:

  • Uniform Statewide Payroll/Personnel System (USPS)
  • Human Resource Information System (HRIS)
  • Standardized Payroll/Personnel Reporting System (SPRS)
  • Centralized Accounting and Payroll/Personnel System HR/Payroll (CAPPS HR/Payroll)

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Increase for Salary Schedule A & B Employees

Authorization

House Bill 1, General Appropriations Act (GAA), Article IX, Section 18.02, 84th Legislature, Regular Session, provides authority for an increase for employees paid on Salary Schedules A & B.

Details

Fiscal Year Effective Date Annual Increase in Salary
2016 Sept. 1, 2015 2.5 percent

Eligibility

  • The appropriations generally cover employees of state agencies, including employees of the Higher Education Coordinating Board, who contribute to the Employees Retirement System (ERS).
  • The appropriations for a salary increase do not include the following:
    • Return-to-work retirees or other employees who do not contribute to ERS
    • Justices and judges of the appellate and district courts
    • Compensatory per diem board or commission members
    • District attorneys
    • Criminal district attorneys
    • County attorneys performing the duties of a district attorney
    • Employees of institutions of higher education (except for certain employees of institutions of higher education who were formerly employees of the Texas Department of Criminal Justice [TDCJ] and who continue to contribute monthly to ERS)
  • The GAA salary increase rider does not authorize any salary rate above the maximum rates specified in the classified salary schedules.

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Increase for Salary Schedule C Employees

Details

Appropriations have been authorized for agencies that employ individuals paid on Salary Schedule C in amounts sufficient to allow for the adjustments (including the 2.5 percent increase) built into the new schedules for fiscal 2016.

  • The appropriations cover employees of state agencies whose job classifications are tied to Salary Schedule C.
  • The GAA salary increase rider does not authorize any salary rate above the maximum rates specified in Salary Schedule C.

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Frequently Asked Questions

Will the salary increase be automatic?

The 2.5 percent increase is built into the maximum amounts for the salary schedules for fiscal 2016. However, agencies must ensure that each eligible employee receives the appropriate increase and that those who are not eligible for the increase do not receive an increase.

USPS Agencies

  • For agencies that use USPS as their internal payroll system, the system will generate the pay increases for all eligible employees. USPS will also ensure that those employees who are not eligible do not receive an increase.
  • The Salary Schedule C for fiscal 2016 (with the increases imbedded into the schedules) will be added to USPS, and the fiscal rollover process will apply the new rates for each Salary Schedule C employee.

SPRS Agencies

  • Agencies that report to SPRS must submit the new pay rate for eligible employees, which will be validated to ensure that the proper increase has been applied. SPRS will also validate that those employees who are not eligible will not receive the increase.
  • SPRS agencies must submit the new pay rate for Salary Schedule C employees, which will be validated to ensure that the proper rate has been used.

CAPPS HR/Payroll Agencies

  • For agencies that use CAPPS as their internal HR/Payroll system, the system will generate the pay increases for all eligible employees. CAPPS will also ensure that those employees who are not eligible do not receive an increase.
  • The Salary Schedule C for fiscal 2016 is not applicable in CAPPS at this time.

How will the Comptroller’s office monitor the salary increase?

As described above, USPS will generate transactions that include the pay increase as appropriate, and SPRS will verify that the new rates reported include the required pay increase. The pay increase actions apply before other routine September salary actions and are separate actions that allow the Comptroller’s office to monitor the amounts awarded to each eligible employee. CAPPS will generate transactions that include the pay increase as appropriate and will send all F16 related salary transactions to SPRS. Like USPS, CAPPS will apply the pay increase actions before other routine September salary actions to ensure the Comptroller’s office can monitor the amounts awarded to each eligible employee.

Note: Those institutions of higher education that employ individuals who were formerly employees of TDCJ must ensure that eligible employees receive the 2.5 percent increase effective Sept. 1, 2015, and properly report the action to HRIS using reason code 931.

How will the amount of the salary increase be calculated for a salaried part-time employee who is entitled to receive the increase?

Fiscal Year The amount of the increase will be…
2016 2.5 percent of the employee’s annual salary (as reduced to account for the employee’s part-time status)

How will the amount of the salary increase be calculated for an hourly employee who is entitled to receive the increase?

Fiscal Year The amount of the salary increase will be… and the employee’s hourly rate after the increase would be equal to…
2016 2.5 percent of the employee’s annual salary 102.5 percent of the employee’s annual salary rate before the increase, divided by 2080 hours

Are employees of the legislative agencies included in Article X of the GAA eligible for the salary increase?

The Comptroller’s office has been advised that the increase applies to employees participating in the ERS retirement system in Articles I through Article X of the GAA.

Which employees are not eligible for the salary increase?

  • Return-to-work retirees or other employees who do not contribute to ERS
  • Justices and judges of the appellate and district courts
  • District attorneys
  • Criminal district attorneys
  • County attorneys performing the duties of a district attorney
  • Compensatory per diem board or commission members
  • Salary Schedule C personnel
  • Employees of institutions of higher education (except for employees of institutions of higher education who were formerly employees of TDCJ and who continue to contribute to ERS)

Will there be another increase effective Sept. 1, 2016?

No, there is only one increase, and it is effective Sept. 1, 2015. There is no second increase.

How will the Salary Schedules A and B be adjusted for the pay increase and how will those who are not eligible for the increase fall on the schedule?

The maximum amounts on Salary Schedule A and on Salary Schedule B are increased by 2.5 percent and will allow an eligible employee to receive the 2.5 percent increase and still remain within the limits of the schedule. The minimum amounts were not adjusted because not all employees are entitled to an increase, and no one can be paid less than the minimum amount on each schedule.

For instance, a return-to-work retiree at the minimum of the pay group on Aug. 31 will remain at the minimum of the pay group on Sept. 1 without an increase.

As always, agencies will have to establish policies for the salary amounts offered to new employees while ensuring that those salary amounts fall within the pay group and are appropriate based on agency policy.

How will the Salary Schedule C be adjusted for the increase for Schedule C employees?

The designated amounts on Salary Schedule C have been adjusted to accommodate the legislative intent for an increase for those employees whose job classifications are paid through Salary Schedule C. Effective Sept. 1, the employees’ salaries will be adjusted by the appropriate pay increase.

Are employees who are in line item exempt positions eligible for the salary increase?

Those employees who are employed in line item exempt positions and who contribute to retirement under ERS are eligible for the 2.5 percent increase effective Sept. 1.

The Comptroller’s office has been advised that the line-item exempt salaries will be revised to include the 2.5 percent increase in the final published version of the GAA.

If my agency hires a new employee on Sept. 1, will that employee be eligible for the pay increase?

The salary tables have been adjusted by the 2.5 percentage increase and provide sufficient range of salary to allow agencies to hire the employee at any level within the range of salaries for the appropriate pay group that the agency and the employee have agreed is the proper salary. The new hire salary is always determined by the agency and agreed to by the prospective employee at the rate appropriate for the job classification based on agency criteria.

Our agency hired employees on July 1 and Aug. 1, who were in the 90-day wait for retirement and normally would not begin a retirement contribution until Oct. 1 and Nov. 1 respectively. Are those employees eligible for a pay increase on Oct. 1 and Nov. 1?

The pay increase is only effective Sept. 1, but the Comptroller’s office has been advised that if the employee is in a 90-day wait prior to Sept. 1, that employee is eligible for the pay increase. The employee will no longer be in a 90-day wait as of Sept. 1. ERS has determined that the first payroll deduction for retirement will occur for the September pay period as well.

In the version of HB 1 that I have seen, our agency bill pattern lists the line item Not-to-Exceed salary of $150,000 for the executive director title, and his current salary is $150,000. Our understanding is that he is to receive the 2.5 percent increase because he participates in ERS. Can his salary exceed the Not-to-Exceed limit in the GAA?

The Comptroller’s office has been advised that the published GAA will reflect Not-to-Exceed salaries adjusted by the 2.5 percent increase. The system tables that limit the line item exempt salaries to those listed in the agency bill pattern in the GAA will be adjusted for the 2.5 percent increase based on the adjusted limits. Your agency is authorized to increase the executive director’s salary to include the 2.5 percent increase, if the incumbent is eligible for the increase by virtue of participating in ERS.

Are employees who contribute to an Optional Retirement Program (ORP) rather than a retirement system eligible for the salary increase?

The pay increase is only available for those employees who contribute retirement contributions to ERS. ORP-covered individuals are not eligible for the pay increase.

My agency is a self-directed semi-independent agency (SDSI) and receives no appropriated funds. Our agency staff participates in ERS, so are they eligible for the pay increase?

The Comptroller’s office has been advised that the general legislative intent is that effective Sept.1, 2015, every employee who contributes to ERS will automatically receive the 2.5 percent pay increase. Additionally, because the pay increase was made contingent on the enactment of HB 9 and automatically goes toward payment for a future benefit, the pay increase will be automatic and apply to every eligible state employee, including each SDSI agency. While there is no appropriation made for the SDSI agencies, the eligible employees of those agencies are intended to receive a pay increase from agency funds.

Our agency recently hired an individual who had previously retired under the Teachers Retirement System, but he participates in ERS in his present position. Is this individual eligible for the pay raise or is he considered a return-to-work retiree?

The pay increase is intended for those employees who make retirement contributions to ERS, so the employee you have described is eligible for the pay increase. He is not considered a return-to-work retiree for the purpose of the pay increase.

Changes to this Document
Date Updates
08/14/2015 Reissued for acts of the 84th Legislature, Regular Session

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