The University of California Board of Regents today (Nov. 17) approved regular annual merit increases averaging 2.5 percent for senior UC management, including President Robert C. Dynes, chancellors and other UC officers. On Oct. 1, UC staff employees not covered by union contracts received general salary increases based on a 3.5 percent funding pool (increases for union-represented employees are governed by collective bargaining agreements). The 2.5 percent merit increases for senior officers are effective Oct.1, 2005.

Along with the merit increases, the regents' budget allocated additional funding for market and equity adjustments for some UC senior management, which will be proposed at the regents' January 2006 meeting.

As a group, chancellors, the president, senior vice presidents and other top administrators have received the same general increases as other employees: 0 percent for 2004-05 and 2003-04, and 1.5 percent for 2002-03. Even with this year's merit increases, the salaries of many senior UC managers still significantly fall below market.

For example, the current average UC chancellor salary of $312,370 lags the average salary of UC's full group of 26 comparison institutions ($415,798) by 33 percent, and lags the average salary of UC's private university competitors ($547,343) by 75 percent.

In light of the recent budget cuts and constrained state salary funding of the last several years, UC has been working hard toward stopping salary erosion and ensuring competitive compensation and benefits for all employees. For instance:

- Thanks to the support of the governor and Legislature, UC employees this year are receiving average 3.5 percent general and merit salary increases, and UC is proposing a 4 percent average increase for 2006-07 (subject to collective bargaining);

- UC several years ago introduced an income-indexed approach to health care premiums, in which those who earn less also pay less for their health care. There are now four bands of rates for health insurance premiums: for those with $40,000 annual earnings or less, $40,000-$80,000, $80,000-$120,000, and $120,000 and above;

- In 2002 and 2003, when state funding for general salary increases faltered, UC allocated additional retirement funds to each employee through a "Capital Accumulation Provision" account. In 2002, 3 percent of an employee's covered compensation was credited to the employee's retirement accounts, and in 2003 the figure was 5 percent.

In addition, UC regents yesterday (Nov. 16) passed item RE-61 that establishes goals for ensuring competitive total compensation for UC employees at all levels.

###