Temporary Salary Reduction Plan (TSR)

Frequently Asked Questions

1. What is a temporary salary reduction?

A temporary salary reduction (“TSR”) is a reduction in pay that affects only FY 2011 salary for employees (faculty and staff) subject to the TSR Plan and will not carry over into the following fiscal year. 

2. What is the Temporary Salary Reduction Plan (“the TSR Plan”)?

The TSR Plan has been developed to respond to budget deficits for Fiscal Year 2011.  All regular and contingent category II staff, and faculty, except those identified in Question #3 below, are included in the Plan.  The Plan involves salary reductions and paid administrative leave for employees included in the Plan.

3. Are any employees excluded from the Plan?

All employees on H1-B visas, contingent category I employees, adjunct faculty paid by the course, faculty who are employed in whole or in part by the VA, faculty and staff whose salary as of June 5, 2010 is supported 80% or more from externally sponsored programs, graduate research assistants, graduate teaching assistants, student employees, post-doctoral and other fellows, and residents are excluded from the TSR Plan.  Because of safety concerns, all commissioned police officers, police communications staff, and School of Pharmacy Poison Center Information Specialists are excluded.

4. What salary reduction is an employee required to take? How much will pay be reduced?

The salary of an employee subject to the Plan will be reduced beginning with pay period 11-02 (July 4- July 17, 2010); the first reduced paychecks will be issued on July 23, 2010.  The employees included in the Plan based on annualized salary as of June 5, 2010, and the amount their gross pay will be reduced, are:

Category Salary Level% Reduction
AUnder $40,0000.4%
B$40,000-$49,9991.2%
C$50,000-$69,9991.9%
D$70,000-$99,9992.7%
E$100,000-$119,9993.1%
F$120,000-$199,9993.8%
GAbove $200,0005.0%

For part-time employees, see Question #8.

5. What if an employee’s salary is funded by a contract, grant or clinical revenue source?

The University is committed to a Plan that ensures fairness.  Therefore in general, employees supported by contracts, grants, or clinical revenue that are paid through checks issued by the University will be included in the TSR Plan.  Only the State portion of the salary savings will be returned to the State, with the grant funded portion remaining in the grant.  However, because of the difficulty of meeting contractual requirements of sponsored programs, this Plan excludes all faculty or staff members, 80% or more of whose salary as of June 5, 2010 is from externally sponsored programs administered through the Office of Research and Development.

6. Will the campus be closed for any days under the TSR Plan?

Yes.  The campus will be closed on December 23, 2010 just prior to the official Winter Break.  Employees included in the TSR Plan should use one of their paid administrative leave days on that day.  Most campus buildings will be closed to maximize energy savings.  Supervisors of employees not included in the TSR Plan must make specific assignments for those employees to work on that day or allow them to use annual or personal leave.

7. How many paid administrative leave days will an employee receive? 

All employees included in the TSR Plan will be entitled to receive TSR paid administrative leave as indicated in the chart below.  This administrative leave includes the administrative leave day that most employees will take for the campus closure on December 23, 2010.  For example, a category B employee who is assigned 3 days (24 hours) of paid administrative leave under the plan would normally take 1 day on December 23, 2010 when the campus is closed and 2 days (16 hours) at other times.  Under this Plan, an administrative leave day is defined as 8 hours.

CategoryTSR Paid Administrative Leave DaysHours
A18
B324
C540
D756
E864
F1080
G13104

For part-time employees, see Question #8.

8. How will the Plan be applied to a part-time employee?

For part-time employees, the required temporary salary reduction will be prorated as follows:  A part-time employee’s salary will be calculated for the full-time equivalency to determine the appropriate salary level in the Plan at which the employee will participate.  The full-time equivalent salary is then prorated for the employee’s percentage FTE to determine the salary reduction and the number of administrative leave days the employee will receive.

Example:  An employee who is appointed to a .5 FTE and earns $30,000 would have the appointment projected to 1.0 FTE and the salary calculated at 100% or $60,000 to determine the salary level at which the employee would participate in the TSR Plan.  This employee would be in salary category C and would receive a temporary salary reduction of 1.9%.  The 1.9% temporary salary reduction would be applied to the employee’s .5 FTE salary of $30,000.  In category C, the employee would receive five (5) days of administrative leave pro-rated on the .5 FTE as 2.5 days of leave (20 hours of leave). 

9. Will the TSR Plan affect classes and instruction?

No.  Classes may not be cancelled as part of the Plan.  Essential services, including class schedules, necessary student services, and patient care activities will be maintained. 

10. Can employees choose to work during the December 23, 2010 closure?

Generally, no.  Non–essential employees included in the Plan should take administrative leave or another type of leave (annual, personal or holiday) on that day.  Included employees who are notified in writing by their supervisors that they are “essential” during the general closure must work as assigned and will be permitted up to one day of administrative leave, depending on their full or part-time status, on an alternate scheduled date(s) prior to June 30, 2011.  Employees not included in the TSR Plan should work as assigned or use annual or personal leave; see Question #6.  

11. How will the Plan be administered?

The salary of included employees will be reduced beginning with pay period 11-02 (July 4 – July 17, 2010); the pay reduction will continue through June 30, 2011 (pay period 12 - 01).  The first reduced paychecks will be issued on July 23, 2010.  All included employees will be assigned administrative leave for December 23.  Included employees in Categories A-G shall receive the indicated paid administrative leave as of July 4, 2010.  Administrative leave must be used by June 30, 2011. 

12. If an employee’s salary increases or decreases during the temporary salary reduction period, will that increase or decrease the percentage of salary reduction the employee is required to take?

No.  The salary reduction is based on the employee’s salary as of June 5, 2010.  Salary adjustments made retroactively to affect salary prior to June 5, 2010 will not affect an employee’s participation in the TSR Plan. 
 
13. How can an employee take the administrative leave?  When does the administrative leave expire?

For staff, requests to use the administrative leave should be directed to the supervisor.  Staff administrative leave will be subject to the request and approval process for leave of the employee’s school or unit.  Supervisors are responsible to schedule administrative leave based on operational needs to ensure that services are maintained.  Operations permitting, supervisors should give reasonable consideration to schedule administrative leave days when the employee requests them.

Faculty administrative leave will be managed as directed by the school.    

All administrative leave must be used between July 4, 2010 and June 30, 2011; it may not be carried over to FY2012.  Administrative leave not used by June 30, 2011 will be forfeited and employees will not be compensated for the administrative leave time not used. 

14. What if an employee leaves University employment prior to June 30, 2011 and has a balance of unused administrative leave.  Will there be a balance payout? 

No. Similar to personal leave, there is no pay-out for unused administrative leave.

15. How will the Plan impact an employee who is on paid leave of any type?

The TSR Plan applies to these employees.  Pay will be reduced under the Plan and use of administrative leave days should be reported as discussed in these FAQs and the Plan. 

16. What if an employee is on an unpaid leave type such as Leave Without Pay or unpaid Family and Medical Leave?

If the unpaid leave is scheduled during a pay period in which the employee would have been subject to a pay reduction, the employee has no salary reduction for that pay period.  If the employee returns to a paid status while the TSR Plan is in effect, the employee will be subject to the TSR Plan during the remaining pay periods under the Plan and will receive prorated administrative leave.

17. How will the TSR Plan affect employees hired on or after July 7, 2010?

Employees hired on or after July 7, 2010 are excluded from the Plan.

18. How will the TSR Plan affect fringe benefits?

The Plan will not affect benefits, including mandatory retirement, health or accrual of leave.

The TSR Plan will have no impact to the employee’s Mandatory Retirement Plan (defined benefits plan through the Maryland State Retirement Agency or the defined contribution Optional Retirement Plan). The employee’s contribution and/or UMB's contribution will remain the same despite the reduction in the employee’s paycheck. 
Supplemental Retirement Account(s)/SRA (403b, 457b, 401k through Fidelity, Nationwide & TIAA-CREF) contributions (solely the employee’s contributions & match monies for Employees' Pension Plan participants) will automatically stop if the amount the employee is contributing will be greater than the amount of the employee’s net paycheck.   Please note: This will not impact the vast majority of employees; however, employees with an SRA who may be impacted should contact Benefits, Human Resource Services, for assistance at 410-706-2616.


19. Can payroll adjustments be made retroactively to leave balances in order to reassign administrative leave earned under this Plan?

No.  Employees and their supervisors may not request or authorize payroll adjustments retroactively to substitute administrative leave under the TSR Plan for paid or unpaid leave used prior to July 4, 2010. 

20. Does an employee have grievance rights regarding temporary salary reductions?

No.

Issues Pertaining Only to Faculty

21.  Who will determine when faculty administrative leave is scheduled?

Faculty are responsible for scheduling administrative leave subject to administrative oversight and approval as required under School procedures.  Classes and clinical schedules may not be cancelled in order to schedule administrative leave.

22.   How should faculty record administrative leave days?

Faculty should note administrative leave use with the WRS exempt code (see answer to Question #25) on their monthly faculty report of days worked and leave used.

23. How is administrative leave calculated for 10-month faculty?

Since all 10-month faculty are paid over 12 months, the salary reduction and the administrative leave amount are calculated in the same manner as for 12-month faculty.  A 10-month faculty member and a 12-month faculty member at the same annual salary would have the same salary reduction and the same number of administrative leave days.

24. Who should faculty contact with questions about salary levels or completing the faculty report?

It is expected that most questions can be resolved within the school/department administration.  For questions that cannot be answered at that level, please contact the Office of the Vice President for Academic Affairs, (410) 706 – 1850.

Issues Pertaining Only to Staff

25.  How should staff employees record administrative leave days on biweekly timesheets?

Staff should record hours of administrative leave on the biweekly timesheet on the day the leave is scheduled and taken.  The hours should be recorded as paid administrative leave in the appropriate Other Paid Leave Hours block on the timesheet.  Exempt employees will use the code WRS and non-exempt employees will use the code WRH.  Examples of properly completed timesheets are posted to the Human Resources website.

26. Who should a staff employee contact with questions about salary levels or completing the timesheet?

Staff should contact their school/department payroll representative. However, for salary reduction questions, please contact Human Resource Services, Employee/Labor Relations, at (410) 706 – 7302.