101 KAR 3:045. Compensation plan and pay incentives.

 

      RELATES TO: KRS 18A.110, 18A.155, 18A.202

      STATUTORY AUTHORITY: KRS 18A.155(1)(b), EO 98-1443

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 18A.155 requires the Secretary of Personnel to administrative regulations for persons in positions enumerated in KRS 18A.115(1)(g), (h), (i), (j), (k), (p), (t) and (u). EO 98-1443 requires the secretary to establish a state employee adoption benefit program. This administrative regulation establishes the compensation plan and pay incentives for employees in unclassified service.

 

      Section 1. New Appointments. An appointing authority shall appoint an applicant at a salary not to exceed the midpoint of the pay grade.

 

      Section 2. Reentrance to State Service. (1) Returning retirees. An employee who was formerly employed under KRS Chapter 18A and who is appointed to a position covered by the provisions of KRS Chapter 18A, while receiving retirement payments through the Kentucky Retirement Systems or Kentucky Teachers Retirement System, shall be appointed in accordance with the provisions for new appointments.

      (2) Other reentering employees: An appointing authority shall set the salary of a former classified or unclassified employee, other than a returning retiree:

      (a) In accordance with the standards used for making new appointments; or

      (b) Up to a salary formerly paid in the classified or unclassified service, if that salary is within the current pay grade.

 

      Section 3. Salary Adjustments. (1) Promotion. An employee who is promoted shall receive a five (5) percent increase or an increase to the minimum of the new grade, whichever is greater. An appointing authority may grant a salary increase of five (5) percent per grade upon promotion.

      (2) Demotion. If an employee is demoted the appointing authority shall determine the salary in one (1) of the following ways:

      (a) The employee’s salary shall be reduced to a rate that is not below the minimum for the class to which the demotion is made; or

      (b) The employee shall be allowed to retain the salary received prior to the demotion. If the employee’s salary is not reduced upon demotion, the appointing authority shall explain the reason in writing and place the explanation in the employee’s personnel files.

      (3) Reclassification.

      (a) An employee who is advanced to a higher pay grade through reclassification shall receive a five (5) percent increase or an increase to the minimum of the new grade, whichever is greater. An appointing authority may grant a salary increase of five (5) percent per grade upon reclassification to a higher grade.

      (b) An employee who is placed in a lower pay grade through reclassification shall receive the same salary received prior to reclassification.

      (4) Reallocation.

      (a) An employee who is advanced to a higher pay grade through reallocation shall receive a five (5) percent increase or an increase to the new grade minimum, whichever is greater. An appointing authority may grant a five (5) percent increase per grade upon reallocation to a higher grade.

      (b) An employee who is placed in a lower pay grade through reallocation shall receive the same salary received prior to reallocation.

      (5) Detail to special duty.

      (a) An employee who is detailed to special duty in a higher grade shall receive a five (5) percent increase or an increase to the minimum of the grade, whichever is greater, for the duration of the period of the detail. An appointing authority may grant a salary increase of five (5) percent per grade for the duration of the detail.

      (b) An employee who is detailed to special duty to the same or lower grade shall continue to receive the same salary.

      (6) Reversion.

      (a) The salary of an employee who is reverted following detail to special duty in a higher class shall be adjusted to:

      1. The salary received prior to the detail; and

      2. All salary advancements and adjustments which would have been awarded if the detail had not occurred.

      (b) The salary of an employee who is reverted from a position in the unclassified service to a position in the classified service shall be adjusted to:

      1. The salary received prior to leaving the classified service; and

      2. All salary advancements and adjustments which would have been awarded if the individual had remained in the classified service.

      (7) Pay grade changes. If a job classification is assigned to a higher pay grade through a pay grade change, the salary of all employees below the new minimum shall be raised to the new minimum.

      (a) If sufficient funds are available, an appointing authority may provide an increase to an employee whose salary is at or above the new minimum of the job classification in one (1) of the following amounts:

      1. Five (5) percent;

      2. Ten (10) percent; or

      3. A dollar amount approved by the Secretary of Personnel.

      (b) An employee in a class assigned to a lower pay grade through a grade change shall retain his current salary.

      (8) Special entrance rates. If a special entrance rate is established for a job classification, an appointing authority shall adjust the salary of an employee in that classification, who is below the special entrance rate, to the new rate. If sufficient funds are available, an appointing authority may also grant a salary adjustment equal to the difference between the former entrance rate and the new special entrance rate to other employees in that classification.

      (9) Other salary adjustments.

      (a) On the 16th of a month, an appointing authority may grant a five (5) percent salary adjustment to an employee who was eligible for but did not receive an increase upon the completion of six (6) months service following promotion.

      (b) On the 16th of a month, an appointing authority may grant a salary adjustment to an employee within an agency who was eligible for, but did not receive at least a five (5) percent advancement as a result of a grade change on or after January 1, 1999. The total adjustment under this provision when combined with an increase at the time of the grade change shall equal five (5) percent of the employee’s salary immediately prior to the grade change.

      (c) An appointing authority may grant an employee who was eligible for, but did not receive an adjustment beyond the new minimum at the time the special entrance rate was established an increase equal to the difference between the old entrance rate and the new entrance rate.

 

      Section 4. Salary Advancements. (1) Initial appointment increase. An appointing authority shall grant a five (5) percent increase to an employee, except an interim employee:

      (a) On the first day of the month following completion of six (6) months of service; or

      (b) No later than the first day following twelve (12) months of service.

      (c) If the appointing authority elects not to grant the initial appointment increase upon completion of six (6) months service, the increase may be granted on the first day of any month following the date the employee was eligible, but shall be granted no later than the first day following twelve (12) months of service.

      (2) Six (6) month promotional increase. An employee may receive a five (5) percent increase following the completion of six (6) months service after promotion.

      (3) Annual increment dates shall be established as follows:

      (a) On the date of receiving an initial appointment increase;

      (b) On the first of the month following completion of twelve (12) months service by a former employee who is appointed or reappointed, except in the case of an interim employee; or

      (c) On the first day of the month following completion of twelve (12) months service by an employee, other than an interim employee, who returns from leave without pay.

      (4) Annual increment dates shall not change when an employee:

      (a) Is in a position which is assigned a new or different pay grade;

      (b) Receives a salary adjustment as a result of his position being reallocated;

      (c) Is promoted;

      (d) Is transferred;

      (e) Is demoted;

      (f) Is detailed to special duty;

      (g) Receives an educational achievement award;

      (h) Returns from military leave;

      (i) Is reclassified; or

      (j) Receives an increase six (6) months following promotion.

      (5) Service computation. Full-time and part-time service shall be counted when computing service for purposes of determining increment eligibility. Service as an interim employee, or in the former seasonal, temporary, emergency, provisional or federally funded, time-limited categories shall not be considered.

      (6) Return from leave without pay. An employee returning to duty from leave without pay shall receive an annual increment on the first of the month after completing twelve (12) months of service since the last increment was received.

 

      Section 5. Educational Achievement Award. (1) On the 16th of a month, an appointing authority may grant a five (5) percent increase to an employee’s base salary based on educational achievement as specified in this section.

      (2) An agency may elect not to participate in the educational achievement program if sufficient funds are not available.

      (3) An employee shall not receive more than one (1) educational achievement award in a fiscal year.

      (4) An employee shall not receive an educational achievement award and an adjustment for continuing excellence (ACE) based on the same training.

      (5) By submitting a personnel action to grant an educational achievement award, the appointing authority shall certify that all of the qualifying conditions established by this section for the appropriate type of educational achievement award have been met:

      (a) High school diploma, high school equivalency certificate, or a passing score on the GED test.

      1. The employee has obtained the high school diploma, equivalency certificate, or passing score on the GED test:

      a. Outside of work hours;

      b. While in state service;

      c. After establishing an increment date; and

      d. On or after January 1, 1984.

      2. The employee has not previously attained a high school diploma, equivalency certificate, or passing score on the GED test; and

      3. The employee has not completed college coursework on the undergraduate or graduate level prior to obtaining the high school diploma, equivalency certificate or a passing score on the GED test.

      (b) Postsecondary education or training.

      1. The employee has completed 260 hours of job related instruction (or the equivalent as determined by the Secretary of Personnel);

      2. The employee began the course work after becoming a state employee and completed the course work after establishing an increment date;

      3. The employee has completed the course work within five (5) years of the date on which it was begun;

      4. The course work has not previously been applied toward an educational achievement award;

      5. The agency has not paid for the course work or costs associated with it, in whole or in part; and

      6. The employee was not on educational or extended sick leave when the courses were taken.

      (c) Kentucky Certified Public Manager Program.

      1. The employee has successfully completed the Kentucky Certified Public Manager Program offered by the Governmental Services Center at Kentucky State University; and

      2. The employee has not previously received an educational achievement award for completing the Kentucky Certified Manager Program.

 

      Section 6. Employee Recognition Award. (1) On the 16th day of a month, an appointing authority may grant an employee an employee recognition award (ERA) in the form of a lump sum payment of up to five (5) percent of midpoint under the following conditions:

      (a) The employee has established an annual increment date and has worked at least twenty-four (24) months in state service, twelve (12) consecutive months of which is in the department granting the award;

      (b) The employee has not received an ERA in the preceding twelve (12) months or an ACE or a distinguished service award in the preceding twenty-four (24) months; and

      (c)1. The appointing authority determines that the employee’s acts or ideas have resulted in significant financial savings or improvements in services to the Commonwealth and its citizens; or

      2. The employee has exhibited distinguished performance during participation in special projects that have had a significant beneficial impact on the department or governmental operations.

      (2) an employee shall not be eligible for an ERA under this section for an act or idea that has been approved or submitted for consideration as an Employee Suggestion System Award. An employee who has received an ERA shall not be eligible to be considered for an Employee Suggestion System Award for those acts or ideas upon which the ERA is based.

      (3) The granting of an ERA shall be within the sole discretion of the appointing authority.

      (4) An appointing authority shall not grant an ERA to more than twenty-five (25) percent of the total number of full-time employees in the department in a calendar year.

      (5) If an appointing authority grants an ERA, the justification for the award shall be stated in writing, and placed in the employee’s personnel files.

      (6) An appointing authority shall submit a letter or memorandum to the cabinet to award an ERA. The letter or memorandum shall:

      (a) Explain the reason or reasons for the granting of the award; and

      (b) Include a certification by the appointing authority that:

      1. Sufficient funds are available within the department; and

      2. The criteria and limitations established in this section have been met.

 

      Section 7. Adjustment for Continuing Excellence (ACE) Award. (1) On the 16th day of a month, an appointing authority may grant a salary adjustment of up to ten (10) percent of the grade midpoint to a full-time employee’s base pay as an adjustment for continuing excellence award (ACE) under the following conditions:

      (a) The employee has an established annual increment date.

      (b) The employee has worked at least twenty-four (24) consecutive months, twelve (12) consecutive months of which shall have been served in the department granting the award.

      (c) The employee has not received an ACE award or a distinguished service award in the preceding twenty-four (24) months or an employee recognition award (ERA) in the preceding twelve (12) months; and

      (d)1. The employee has demonstrated a sustained level of exceptional job performance; or

      2. The employee has assumed a significant level of additional job responsibilities or duties consistent with the assigned classification, and has performed them in an exceptional manner; or

      3. The employee has acquired professional or technical skills or knowledge through agency directed or authorized attainment of a job related licensure, certification, or formal training that will substantially improve job performance.

      (2) An employee shall not be eligible for an ACE award under this section if an educational achievement award has been granted for the same training.

      (3) The granting of an ACE award shall be within the sole discretion of the appointing authority.

      (4) An appointing authority shall not grant an ACE to more than twenty-five (25) percent of the total number of full-time employees in the department in a calendar year.

      (5) An appointing authority shall submit a letter or memorandum to the cabinet to grant an ACE award. The letter or memorandum shall:

      (a) Explain the reason or reasons for the granting of the award; and

      (b) Include a certification by the appointing authority that:

      1. The criteria and limitations established in this section have been met; and

      2. Funds are available within the department's current recurring base budget to support the award.

 

      Section 8. Adoption Benefit Program. (1) The Personnel Cabinet shall administer a program to provide financial assistance as an incentive to a state employee in the executive branch who adopts a child on or after November 1, 1998.

      (2) A state employee who finalizes a legal adoption procedure for the adoption of a child, other than the child of a spouse, on or after November 1, 1998, shall be eligible to receive reimbursement for actual costs associated with the adoption of a special needs child as defined by KRS 199.555(1), or other child. Available funds for this program shall not exceed $150,000 in a fiscal year.

      (3) The employee shall receive:

      (a) Up to $5,000 in unreimbursed direct costs related to the adoption of a special needs child; or

      (b) Up to $3,000 in unreimbursed direct costs related to the adoption of any other child.

      (4) Unreimbursed direct costs related to the adoption of a special needs child or other child shall include:

      (a) Licensed adoption agency fees;

      (b) Legal fees;

      (c) Medical costs;

      (d) Court costs; and

      (e) Other reasonable fees or costs associated with child adoption as allowed by state and federal law and reviewed and approved by the court at the time of finalization of the adoption.

      (5) Application for financial assistance shall be made by submitting a completed State Employee Adoption Assistance Application to the Secretary of Personnel and supported by documentary evidence of:

      (a) Finalization of the adoption;

      (b) Certification by the Secretary of the Cabinet for Families and Children that the adopted child is a special needs child, if reimbursement for special needs adoption is sought; and

      (c) A copy of an affidavit of expenses related to the adoption filed with and approved by the court at the time of finalization of the adoption.

      (6) If both adoptive parents are executive branch state employees, the application for financial assistance shall be made jointly and the amount of reimbursement shall be limited to that specified in subsection (3) of this section.

      (7) Upon approval of the application for financial assistance, the employee’s agency shall dispense funds in the amount authorized by the Secretary of Personnel, if the funds authorized for the program have not been exhausted.

 

      Section 9. Incorporation by Reference. (1) State Employee Adoption Assistance Application, July 1999, is incorporated by reference.

      (2) This material may be inspected, copied, or obtained at the Personnel Cabinet, 200 Fair Oaks Lane, 5th Floor, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. (17 Ky.R. 1248; Am. 2173; eff. 12-6-90; 21 Ky.R. 1742; 2094; eff. 2-8-95; 22 Ky.R. 1666; eff. 5-16-96; 26 Ky.R. 106; 581; eff. 8-25-99.)