TO: Faculty and Staff
FROM: College President
DATE: May 19, 2004
SUBJECT: 2004-05 Salary and Benefits as Approved by the KCTCS Board of Regents

The KCTCS Board of Regents met May 14, 2004 and took the following actions concerning 2004-05 salary and benefits. These actions continue to protect the rights of faculty and staff who choose to stay in either the former 151B or 18A personnel system or in the former University of Kentucky personnel system. These actions also continue to build the KCTCS System by further enhancing the KCTCS personnel system.

Base Salary Increases

The Board of Regents approved:

A salary increase equal to that provided to state employees for faculty and staff under the former 151B and 18A personnel system.

A 1.0 percent salary increase for faculty and staff in the former University of Kentucky personnel system.

A $1,100 or a 2.0 percent salary increase, whichever is greater, for faculty and staff in the KCTCS personnel system as of July 1, 2004.

Merit Bonus

The Board of Regents provided that all regular status, full-time KCTCS faculty and staff, regardless of personnel system, are eligible for a nonrecurring merit bonus to be awarded to high performing faculty and staff. "High performing" is defined as having earned an "exceeds" rating in the 2003-04 evaluation process, using the KCTCS performance evaluation system. The amount of the bonus will be determined by the amount of funds budgeted for this program in 2004-05 and the number of high performing faculty and staff. The Board of Regents approved a $1.0 million pool for these bonuses. The amount will be determined and communicated with faculty and staff by July 1, 2004.

KCTCS Salary Schedule

The Board of Regents established a pool for additional increases in base salaries for faculty and staff in all personnel systems that are below the Mercer-recommended minimum salary in the KCTCS Classification and Compensation program, as established in 2003. The number of faculty and staff who receive this additional increase will be determined by the amount of funds budgeted for this program in 2004-05, and the number of faculty and staff below the Mercer recommended minimum salary. The Board of Regents approved a $2.1 million pool for these base increases. This additional increase will bring some faculty and staff nearer to the Mercer-recommended minimum, but funding will not be sufficient to bring everyone to the full Mercer-recommended minimum salary.

In addition to the actions for 2004-05 as described above, enhancements to the benefits in the KCTCS personnel system approved for 2003-04 continue to be available to faculty and staff that are covered by KCTCS personnel system policies as of July 1, 2004. The specific enhancements include:

The $50 per month for faculty and staff with single health care coverage.

The $50 is available to be used for health insurance premiums, flexible spending accounts, and any of our current voluntary benefits.

For those waiving health insurance, the $50 may be added to their flexible spending account currently funded by employer contribution or used for voluntary benefits.

For those selecting voluntary benefits, the $50 will begin when the benefits take effect, as KCTCS does not control when these benefits are effective.

The tuition benefit for spouses and dependent children (age 23 or less, as defined by federal financial aid guidelines) of six hours per term (fall, spring, and summer).

For those individuals considering exercising the one-time election to move to KCTCS personnel system, a decision must be made and the KCTCS "Notice of Election to the KCTCS Personnel System" Election Form must be completed by the close of business June 30, 2004, to be eligible for the 2004-05 salary increase to be provided to faculty and staff in the KCTCS personnel system.