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Temporary Salary Reduction

Information about the Temporary Salary Reduction Plan may be found in the FY 2021 Budget Action communication.

The following is a list of frequently asked questions pertaining to UMBC’s Temporary Salary Reduction (TSR) plan.

1. What does Temporary Salary Reduction (TSR) Plan mean?   

The Temporary Salary Reduction (TSR) plan is designed to balance the impact of the salary loss by spreading the reductions over multiple pay periods for a specified period of time.

2. Does the Temporary Salary Reduction (TSR) apply to me?

The TSR applies to employees with a reported annual base salary of $100,000 or more in the fiscal year 2021 (July 1, 2020 – June 30, 2021).  Employees with a reported annual base salary of less than $100,000, on H-1B visas, or are grant-funded at 80% or more are excluded.  The reported annual base salary is the compensation associated with the position eligible for retirement contributions.

3. Why is UMBC implementing a Temporary Salary Reduction (TSR)?

UMBC finds virtually all of our revenue sources under pressure and we anticipate a nearly $65 million, or 13 percent, decrease from the budget originally projected for this fiscal year. The State cut the USM base budget appropriation by $117 million, which has been passed on to all the institutions. UMBC’s share of this reduction is $11.8 million.

While UMBC has taken a number of non-personnel budget actions to address this gap, nearly 70% of the University operating budget is for personnel costs.  We have necessarily had to turn to strategies to reduce those expenditures.

Additional information about the fiscal year 2021 budget can be found here.

4. What are the effective dates of the Temporary Salary Reduction (TSR); when will I see the first reduction in my paycheck?  

The Temporary Salary Reduction (TSR) Plan is effective July 1, 2020 through June 30, 2021.   The fiscal year reduction will be spread over the 18 pay cycles remaining in this fiscal year.  The first reduction, retroactive to July 1st, will occur on paycheck dated October 30, 2020.

5. How is the Temporary Salary Reduction (TSR) calculated?

*NOTE: The scenario above uses the non-leap year reciprocal 26.071428 to calculate the biweekly rate.

You may download the excel TSR Calculator to estimate the gross bi-weekly pay from this Box file.

6. Will the Temporary Salary Reduction (TSR) affect my benefits?

Health benefits will not be affected since there will be no change in your health benefits deductions.

Retirement contributions will not be affected. We will continue to report your reported annual base salary to the state.

Supplemental Retirement Account (SRA) deductions (e.g., 401k, 403b, 457b, Roth if applicable) will not be affected.  However, employees with large SRA deductions should monitor their contributions to ensure there is sufficient pay for the deduction.  Employees can monitor their deductions in the Payroll Online Service Center (POSC) SRA change forms can be found on the HR Website.

Tuition Remission will not be affected.

7. How will the Temporary Salary Reduction (TSR) affect my reported earnings?

W-2 information for 2020 and 2021 will reflect the total salary paid to you.

8. What action is required by employees or departments for the reduction to occur?

No action is required by employees or departments.  The Human Resources Payroll unit will run a program each pay cycle to reduce the salaries of employees in the applicable salary ranges.

9. If I am on paid leave, will I be subject to the Temporary Salary Reduction (TSR)?

Yes.  Employees on paid leave who meet the TSR criteria are subject to the reductions.

10. Is the leave payout at separation subject to the Temporary Salary Reduction (TSR)?

No.  TSR is not applied to leave payout.

11. How will my sabbatical leave salary be captured?

Sabbatical salaries will be captured during the biweekly salary review.  If the sabbatical leave impacts the faculty member’s salary or percentage, the faculty member’s eligibility will be reevaluated.

12. Will additional compensation, i.e., payment on a concurrent job, be included in the Temporary Salary Reduction (TSR) calculation?

No.   The salary reduction is on the reported annual base salary.  The reported annual base salary is the compensation associated with the position eligible for retirement contributions.

13. Will additional compensation, i.e., an acting pay appointment or SRA, be included in the Temporary Salary Reduction (TSR) calculation?

Yes. Compensation added to the reported annual base salary will be included in the TSR.  The reported annual base salary is the compensation associated with the position eligible for retirement contributions.

14. How will funding sources impact the Temporary Salary Reduction (TSR)?

Maintaining accurate bi-weekly funding distribution on the position’s DBE is extremely important for all employees, including restricted funded positions.  Positions that are funded by restricted funds and that hover around 80%, retroactive distribution “retros” will be centrally monitored.  For questions regarding restricted funding, direct cost or cost transfer via retro, please reference Uniform Guidance

15. Does the Temporary Salary Reduction (TSR) qualify for unemployment insurance?

No.  Employees reduced by the TSR are not eligible for unemployment benefits.

 16. Will salary and/or funding changes be updated in the Temporary Salary Reduction (TSR) plan?

Yes.  The TSR program will be reviewed each pay cycle to evaluate salary and funding changes.

17. Will the Temporary Salary Reduction (TSR) affect employees hired after July 1, 2020?

Yes.  The TSR program will be reviewed each pay cycle to identify newly hired employees who meet the criteria.