1. Pay increases for AFC employees are available under state law for:

a. Promotions:  10 %

b. cost of living adjustment:

• Cost of living adjustments (COLAs) are mandated each year of the biennium by state law.  Amount may vary or may not be available based on state revenues and available funds.

c. Performance Evaluation scores

2. Merit increases* may be awarded to employees who receive annual performance evaluations of

a. an overall satisfactory rating are eligible for a 1.5% merit increase

b. an overall above average rating are eligible for a 3.0% merit increase

c. an overall exceeds standards rating are eligible for a 4.5% merit increase

3. Merit increase payments shall be added to the employee’s base salary unless the merit increase will cause the employee’s base salary to exceed Maximum Level of the employee’s pay grade.  The amount exceeding Maximum Level shall be paid to the employee as a lump-sum payment, and shall be considered as salary for retirement eligibility.

4. Unclassified employees will retain their merit eligibility date but will receive a merit lump sum payment at the end of the fiscal year.

5. AFC Personnel will process annual merit increases based on employee eligibility dates.

6. Employees hired before October 1, 2006 have an October 1 merit increase eligibility date.

7. Employees hired after October 1, 2006 have a merit increase eligibility date one year from their hire date.

8. Supervisory personnel who fail to complete an annual evaluation of employees they supervise shall not be eligible for merit payments.

9. Employees must have twelve months continuous employment with a satisfactory performance evaluation rating to be eligible for a merit increase.

10. Employees who receive a written performance-based or disciplinary incident report during the twelve-month performance evaluation rating period are not eligible for a merit increase.

11. This revised AFC Employee Pay Increase Policy § 55 supersedes all earlier versions of AFC Policy § 55 and interpretive memoranda, which are hereby repealed.

* Under authority of Act 688 of 2009, page 156, line 9, the Chief Fiscal Officer of the State reduced FY-10 merit increases as follows:

1. Satisfactory - .75%
2. Above Average – 1.5%
3. Exceeds Standards – 2.25%