COVID-19: Progressive Pay Reduction Plan FAQ

General Questions

What is the Progress Pay Reduction (PPR) plan?

The PPR is a contingency plan for progressive pay reductions on employee salaries lasting 12 months if there are losses in the university’s two biggest sources of revenue, state appropriations and or tuition, as measured on November 15, 2020 or after the conclusion of the Oregon Legislature’s 2021 Spring Session. The plan is intended to address actual losses in E&G funds in excess of $15M up to $35M.

When does this go into effect and how long is the plan?

The soonest the plan could impact faculty salaries is December 1, 2020. However, it may not happen until Summer of 2021, and it is possible it will not happen at all. The university will announce when the plan has been triggered and the level of cuts under the plan. The plan can only be triggered one time for one twelve-month period. The level of cuts cannot exceed the levels set forth above.

What happens to my salary right now?

Nothing, the plan must first be triggered.

What happens to my salary when the plan is implemented?

If the plan is implemented, your salary will be reduced according to a schedule. The PPR calculator will show your individual reduction. After the plan expires, salaries will be restored to pre-PPR levels.

Is anyone excluded from the PPR?

Officers of administration and Represented faculty making below $45,000/year are excluded from PPR. Additionally, research appointments in the following categories are excluded: Research Assistants, Research Associates, Research Professors, Postdoctoral Scholars, Research Scientist, Research Engineer, and Principal Research Scientist. People with multiple appointments will be excluded on a pro rata basis.

Officers of Administration Questions

How will the PPR plan be applied to OAs?

If PPR is triggered, the University will treat the week between Christmas and New Year’s as a paid winter break period for all OAs. This time would be paid for OAs but the majority of university employees would be off. This meets OAs’ interests of getting real time off without having to request it. It also ensures that time off will be free from disruptions. For departments that are unable to cease operations during this time (or who ramp up work due to many faculty/GEs/ students being gone), the university will accommodate this time off during another period. Departments who may need to use a different time period should begin thinking now about when they will cease operations for a week.

What about OAs already impacted by Extended Benefits Program and leave without pay?

As we get closer to the trigger date, the university will review prior impacts and assess how those will be accounted for when implementing the PPR plan.

Are any research appointments excluded from PPR?

Yes. Faculty research appointments in the following categories are excluded from PPR: Research Assistants, Research Associates, Research Professors, and Postdoctoral Scholars. People with separate instructional and research appointments will only have their instructional appointment included.

I am a TTF. How will this impact my summer salary?

The PPR temporarily reduces base salary for anyone who is not in one of the research classifications (like “research associate professor” or “post doc”). The base salary change applies to any FTE based salary payment. Therefore, it will reduce the amount a TTF is paid for summer or academic year on their grant. Most (but not all) TTF who pay themselves on grants in the summer, will have the option of increasing their own FTE slightly in the summer to make up the difference, but only if they can confirm the additional effort on the grant. Federal compliance does not allow us to pay a TTF on their grant at a different base rate that we use for their regular pay. If overall TTF pay is reduced, the money does not get returned to the federal movement but remains available for other grant expenditures.

Does this mean I need to return funds to the funding agency?

No. If the PPR is triggered, it will lower the cost of non-excluded personnel on the grant. This money stays in the grant and can be re-budgeted. In the unlikely event that this money exceeds the rebudgeting authority, please contact Sponsored Projects Services for assistance in seeing sponsor approval for rebudgeting your grant.

Why didn’t you exclude grant funded salaries from the plan?

Federal guidance prohibits making a compensation distinction based on the funding source. Accordingly, we cannot exclude salaries because they are paid from a grant while including salaries payed with non-grant funds.

If I am applying for a grant now that might be impacted by the PPR, how should I calculate my grant budget?

At this time, new grant application budgets should assume that base salaries will remain at their current levels.