2014 Pay Awards and Pay Adjustment Guidelines

TO:                 Principal Investigators & Project Administrators

FROM:           Nelson Sakamoto

                        Director of Human Resources



SUBJECT:    July 1, 2014 – Pay Awards & Pay Adjustment Guidelines




The RCUH Board of Directors approved our 2014 Compensation Award Guidelines.  These Award Guidelines allow for “up to a 3% Merit Pay Awards and/or a 3% General Pay Adjustments to the employee’s base pay rate or a one-time lump-sum pay award”.  A pay adjustment will increase the employee’s base pay rate, whereas a one-time lump-sum pay award will not.  Principal Investigators are reminded to ensure availability of funds prior to submitting any pay award.  Both Merit and General pay awards will be granted only if there are sufficient funds to do so and based on program/operational requirements.




All Principal Investigators must complete (and submit to the RCUH Human Resources Department) the 2014 Annual Performance Evaluation which is mandatory for all eligible Regular Status employees in order to receive a Pay Award or Pay Adjustment: Principal Investigators must complete and submit an Annual Performance Evaluation as a prerequisite for initiating a pay award or a pay adjustment.  The deadline for submission of these Annual Performance Evaluations is Monday, June 23, 2014 (no exceptions).  Once these Annual Performance Evaluations have been reviewed and processed by my office, they will be logged into our human resources information system to produce the online Pay Award/Personnel Action Form (PA/PAF).  You will find the online PA/PAF at your HR portal once your employees’ Annual Performance Reviews have been received and processed.  Therefore, you should turn in your completed Annual Performance Reviews as soon as possible, but no later than Monday, June 23, 2014 (no exceptions). 




Definitions and Examples




  • Eligible Employee: Regular – Status Employees in a Non-Probationary Status. If the employee is a “transfer” hire (from one project to another), s/he is still eligible for the pay award/adjustment provided that s/he is performing in at least a satisfactory or better manner.
  • One-Time Lump-Sum Pay Award:  One-time lump-sum Merit Pay Award of up to 3% and/or a One-Time lump-sum General Pay Award of 3% of the employee’s annual base pay rate.  (Example – 3% Merit Pay Award x $20,000 Annual Base Pay Rate = $600.00 one-time lump-sum payment.)
  • Pay Adjustment:  An “up to 3% merit pay adjustment to the employee’s base pay rate” and/or “3% General pay adjustment” will change the employee’s base pay rate by the percentage increase he/she is awarded. (Example – 3% merit pay adjustment x $20,000/year = $600/year pay adjustment or new pay rate of $20,600/year.)
  • Merit:  In order to qualify for a “Merit” pay adjustment or one-time lump-sum pay award, an employee must have either a “Distinguished” or “Commendable” overall rating on their Annual Performance Evaluation.  Merit pay adjustments or pay awards should be limited to your top performers who have demonstrated an overall outstanding work performance for the past 12-month period.
  • General: In order to qualify for a “General” pay adjustment or one-time lump-sum pay award, an employee must have at least a “Satisfactory” overall rating on their Annual Performance Evaluation.  A “Satisfactory” rating applies to an employee performing at least at a “satisfactory or acceptable” level of work performance over the past 12-month period. 


 Conditions for Pay Awards


  1. Merit Pay Awards can only be given to employees who score either a “Distinguished” or “Commendable” rating on their Annual Performance Evaluation.
  2. General Pay Awards can only be given to employees who score at least a “Satisfactory” rating on their Annual Performance Evaluation.
  3. A Principal Investigator may decide to award only Merit Pay Awards if project’s funding is limited.
  4. Merit Pay Awards for Distinguished performance ratings must be higher than pay awards for Commendable performance ratings.
  5. Consistency in the percentage amounts should generally be equal for the type of Pay Award.  Example:  3% for Distinguished, 2% for Commendable and 3% for General.  This means everyone scoring Distinguished should be receiving a 3% pay award. The Principal Investigator must explain why circumstances warrant a difference in the percentage awarded in a category.
  6. Principal Investigators may provide a Lump Sum Merit Pay Award and Pay Adjustment to base pay rate for General or the opposite combination.  Remember, only a Pay Adjustment will increase the employee’s base pay rate. 


Online Pay Award/Personnel Action (PA/PAF) form:  The online “Pay Award/Personnel Action” form is an online app that provides Principal Investigators and Fiscal Administrators a paperless personnel action form to initiate either Merit and/or General Pay Award (lump-sum payment) or Pay Adjustment (increase in base pay rate) for all employees in their respective project(s). For fiscal staff, the online personnel action/pay award forms will also calculate/display the full costs associated with the pay adjustment (both for lump sums and adjustment to base pay rate).  This online PA/PAF form is found on the RCUH HR Portal once your Annual Performance Evaluations have been received and processed by my office.




PA/PAF Deadline for Pay Awards Submission for July 1, 2014 Effective Date: Principal Investigators and Fiscal Authorities must submit their online PA/PAF no later than July 9, 2014 (no exceptions).  Your employees will receive either their Pay Adjustment or Lump Sum by the July 22, 2014 payday. 




Any questions please email me at [email protected] or call at (808) 956-6965.






June 23, 2014 – Deadline for Annual Performance Evaluations to RCUH HR


June 25, 2014 – Earliest day the Online PA/PAF is available


July 9, 2014 – Deadline for PA/PAF online submission for effective date 7/1/14