Team # 628 -- Team to Revise HR-88 and Fixed-Term 1 Fewer-Than-Twelve Month Positions
ObjectiveTwo policy changes have been made to allow for greater flexibility, better benefits for newly hired Fixed Term I appointments, and reduced administrative costs for various University departments. These changes were made with two goals in mind: to provide more flexibility for employees and thereby further develop as an employer of choice, and to provide direct and indirect cost-savings.
The first change applies to all classifications (i.e., academic, staff, administrator, etc.). Effective July 1, 2003, we pay all recurring Fixed Term I fewer-than-12-month appointments in twelfths. Paying these employees in twelfths eliminates the need for manual intervention during the months not worked and, therefore, decreases administrative costs. This is good news for employees as well, in that this change will provide benefits coverages at the regular, employee cost throughout all twelve months.
The second change applies to staff and administrator positions. Human resources policy HR-88 has been revised to allow both Standing and Fixed Term I positions to be established as any combination of months of service and/or weekly hours of work that equates to 75% or more of a twelve-month, forty-hour-per-week position. A position established to be fewer-than-twelve-months and/or fewer-than-forty-hours is expressed as a percent of the full-time equivalent (FTE). For example, if work needs require, a 30 hour-per-week appointment can be established as a 75% FTE position and permit the department to save 25% of the salary costs.
- Billie Willits, Sponsor
- Linda Pierce, Leader
- Jim Elliott, Member
- Ann Gray, Member
- Bob Maney, Member
- Donna Mills, Member
- Donna Neideigh, Member
- Rich Olsen, Member
- Steve Selfe, Member
- John Shawver, Member
- Tim Whitehill, Member
Results Achieved to Date
I just received the remainder of my HR-88 reports. The savings referenced below are from standing appointments. In addition, we saved $342,904.45 from FTI HR-88 appointments. There is no way to tell how much of the $342,904.45 was experienced last year and how much is as a result of the new HR-88 provisions. We will, however, be tracking this annually from now on.
- Linda Pierce
For FY 03/04, the University had direct cost savings of $1,474,693.74 through the use of HR-88 positions (75% to 99% FTE positions). These savings were experienced through both the long-standing HR-88 provisions (e.g., 9, 10, or 11 month positions) and the new provisions adopted July 1, 2003 (e.g., positions scheduled for fewer than 40 hours/week in some or all months of the year).
The new HR-88 provisions also provided indirect savings in both the Office of Human Resources and the Controllers Office since we are now paying recurring FTI fewer-than-12-month appointments in twelfths. Prior to this change, an administrative cost was associated with our practice of terminating employment at the end of the FTI contract, manually communicating with the health care companies so that those employees maintained their coverage, manually billing the employees for the health care coverage, and then reinstating the FTI appointment at the beginning of the Fall Semester. Paying these employees in twelfths eliminated the need for manual intervention and, therefore, decreased administrative cost.
- Linda Pierce
Office of Planning and Institutional Assessment
The Pennsylvania State University
502 Rider Building
University Park, PA 16802-4819
Phone: (814) 863-8721
Fax: (814) 863-7031
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