UC Davis is preparing to distribute "merit" pay increases effective Oct. 1 to nonrepresented staff for 2006-07, in accordance with an announcement by the UC Office of the President. The pay raises will come from a 3.5 percent "merit funding pool."

As of Wednesday, there had been no announcement regarding pay raises for represented employees, pending negotiations as required by the collective bargaining process.

The state budget includes an overall funding increase of 4 percent for UC compensation and benefits programs. For nonrepresented employees, the money for salaries is being split two ways: 3.5 percent for "merit" increases and 0.5 percent for an "equity funding pool … to address significant individual market parity and equity issues for policy covered (nonrepresented) staff employees, effective Oct. 1, to be determined at each location and distributed according to local programs consistent with systemwide guidelines," according to the announcement on UCOP's At Your Service Human Resources and Benefits Web site.

Dennis Shimek, senior associate vice chancellor for Human Resources at UC Davis, said "merit" raises will be distributed to nonrepresented employees whose performance is rated satisfactory or better. He said the question of how UC Davis will spend the 0.5 percent in equity money was still under review.

Last year, with the same percentage available for equity, the Davis campus increased salary grades and scales for employees "in critical classifications with substantial salary lags."

Regarding UC benefits programs in 2006-07, an August memo from the Office of the President announced that, as in years past, the university will pay the full cost of dental and vision coverage, and basic life and disability insurance.

However, as of Wednesday, there had been no announcement about health insurance premiums, except for this in the August memo: "Even though health care costs are rising significantly, as part of our ongoing commitment to its employees, UC continues to shoulder the vast majority of health insurance costs" — with the university paying 88 percent and employees 12 percent.

The memo also states that UC will maintain its tiered premium system, in which lower-paid employees pay less expensive premiums.

"While many employers are having to reduce or eliminate benefits, and pass on to employees numerous types of cost increases, UC is not canceling any plans or raising employee costs for co-pays and deductibles," the memo declares.