Date: May 29, 2012
To: RRC Managers
From: Michael Volna, Controller
Subject: Upcoming Changes to Cell Phone Policy
This communication is to provide you with budgeting information related to upcoming changes to the University's administrative policy covering cell phone expenses.
Effective July 1, 2012, the salary augmentations for business cell phone expenses currently allowed by policy will be eliminated. Salary augmentations currently provided to employees are to be converted to additional base compensation for employees who continue to qualify, based on the eligibility requirements of the former policy. Neither employees nor departments will be required to monitor eligibility or track cell phone usage under the new policy. In addition, the new policy will prohibit University departments from providing new salary augmentations for cell phones, and will strictly limit reimbursements and payments made directly by departments for employees' expenses associated with cell phones, data plans, or cell phone equipment used for University business.
WHY THIS CHANGE IS BEING MADE
These policy changes reflect a desire to reduce administrative burden and costs. The changes will reduce administrative burden by eliminating all cell phone augmentation processes and procedures, and by also placing strict limits on expense reimbursements for cell phones. In addition, University costs will be reduced because the "grandfathered" amounts reflect current market rates which are lower than the amounts of the previous augmentations. It is estimated that the University will save at least $250,000 per year as a result of the policy changes.
As of June 30, 2012, all faculty and staff who are eligible for salary augmentations under the current policy will be grandfathered into the new policy with $65.00 a month ($780 per year) added to the employee's base salary. The grandfathering only applies to employees receiving the "PDA" or "CPA" augmentations as of June 30, 2012. No new or additional recipients are allowed.
As part of the transition, augmentations must be converted to base pay unless the employee no longer qualifies for the augmentation, or the employee voluntarily chooses not to receive the additional pay altogether. Additionally, departments may enter into mutual agreements with the affected employees to convert an amount to base pay that is less than $65.00 per month.
The revised policy will be posted to the University Policy website after all reviews and approvals are completed, which is estimated to be on or shortly after July 1, 2012. Units implementing the changes with the first pay period of FY 13 are considered to be in compliance with the new policy, even though the pay period starts prior to the anticipated effective date of the policy. Additional instructions will be forthcoming soon addressing the transition processes, important dates, situations involving bargaining unit employees, sponsored accounts, and other transition information. If you have any questions, please contact the Helpline at 624-1617, or LaCretia Bell at firstname.lastname@example.org or 626-4473.