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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 ($102,000 effective January 1, 2021) or on H-1B visas 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 and is effective through 12/31/2020.

See the TSR Calculator for the updated tiers effective 1/1/2021.  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, 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.

18. How can I change my Supplemental Retirement Deductions?

Supplemental Retirement Account (SRA) contributions can be initiated or changed at any time!  Forms are in DocuSign.

To initiate or change your supplemental retirement deduction: 

Step 1. Visit the Supplemental Retirement Webpage 

Step 2. Complete the forms online* for the plan and the company you wish to initiate or change:

Pre-Taxed Plans:  403b, 457b, 401k

After-Tax ROTH Plans:  403b, 457b, 401k

*TIAA and Fidelity forms are in DocuSign.  MSRP changes are done directly through their member portal.

Step 3. Monitor your Paycheck in POSC.  It takes 1-2 pay periods to see the SRA change on your paycheck.

Free financial consultation is available.  Schedule your appointment by visiting the scheduling links to each vendor on the following page.  If you have questions, please email hrbenefits@umbc.edu.

19. How will the COLA impact the Temporary Salary Reduction (TSR)

The TSR will be based on your new biweekly salary at your current tier percentage.  You will not move to another tier.

Example: If your 2020 annual salary was $99,000, your 1/1/2021 salary would be $100.980. The TSR tiers now start at $102,000 and you will not have a TSR adjustment.