FY2015 Furlough Information

The University of Maryland recently experienced a significant and unplanned cut to its FY2015 budget in the amount of $15.6M.  In a message to the University community on January 16, 2015, President Loh outlined his four-part plan to address this cut, guided by the principles of shared sacrifice and fairness.  The employee furlough plan has been developed in this spirit.

The furlough/target salary reduction is based on an employee’s total eligible salary, which is comprised of all eligible sources of funds1 and includes salary additions for administrative increments, acting increments, non-teaching overloads, and all other salary additions to pay (except health and retirement subsidies, and teaching overloads), as determined on January 16, 2015.

This 2015 Furlough plan is comprised of three sections:  Section 1 applies to all faculty and staff (except as otherwise noted); Section 2 applies to staff only; Section 3 applies to faculty only.  Employee benefits and leave earnings are not impacted by this plan.

Section 1: General Guidelines

  1. Furlough plan savings will be achieved by different means for faculty and staff as follows:
    1. Staff:  Furlough plan savings will be achieved through temporary salary reductions, as described in Section 2.
    2. Faculty:  Furlough plan savings will be achieved through actual furlough days, as described in Section 3.
  2. UMD’s most financially vulnerable employees will share a lighter burden, as follows:
    Furlough or Temporary Salary Reduction (Number of Days) Total Eligible Salary (as of 1/16/2015)
     0 Up to $60,000
     1 $60,001 – $100,000
     2 $100,001 – $180,000
     3 $180,001 and above
  3. Eligibility Criteria
    1. Included in this plan are staff and faculty in the following categories, on fully or partially state- or auxiliary-funded appointments, in combination with other funding sources:
      • Faculty Tenured (category status code-01)
      • Faculty Non-Tenured On-Track (category status code-02)
      • Faculty Non-Tenured, Term Contract (category status code-03)
      • Faculty Non-Tenured, Continuing (category status code-15)
      • Faculty Contractual (category status code-25)
      • Nonexempt Staff Regular (category status code-20)
      • Nonexempt Staff, Contingent 2 (category status code-22)
      • Exempt Staff Regular (category status code-33)
      • Exempt Staff, Contingent 2 (category status code-35)
      • Non-Teaching Overloads (category status code-37)
      • Any employment category included in this section, with an effective start date before January 16, 2015
    2. Excluded from this furlough plan are the following:
      •  Faculty and staff employees with appointments that are at least 95% grant and contract-funded.
      • For Faculty and staff employees less than 95% grant and contract-funded, the partially grant-funded portion of an employee’s salary.
      • Should funding change to include state funding after January 16, 2015, employees will be assessed the amount they would otherwise have been responsible for from the pay period of change.
      • Undergraduate and graduate student hourly employees
      • Graduate Assistants
      • H1-B Visa holders
      • Nonexempt, Contingent 1 Staff (category status code-31)
      • Exempt, Contingent 1 Staff (category status code-34)
      • Faculty Hourly (category status code-36)
      • Faculty Non-Regular, Non-Tenured (category status code-37)
      • Teaching overloads
      • Faculty and staff appointed on or after January 16, 2015
      • Summer Session and Winter Term appointments
  4. Appeals to the amount of an employee’s furlough obligation under this FP may be made by written appeal to Office of Assistant Vice President for University Human Resources.  Appeals may be made on the basis of the following criteria:
    1. A reduction in base pay that occurred during the FY2015 Furlough Plan
    2. Expiration of an addition to pay that was included in the original computation
    3. Reduction in FTE
    4. Other similar circumstance

Section 2:  Staff – Temporary Salary Reduction

Furlough plan savings for staff will be achieved through temporary salary reductions.

  1. The temporary salary reduction for staff is based on the total eligible salary from all sources except salary from grant and contact funds.  The temporary salary reductions each pay period will be recovered from all salary funding sources.
  2. The temporary salary reduction recovered in FY2015 will be determined based on the employee’s salary on January 16, 2015.  The temporary salary reduction will be taken in equal amounts from the employee’s paycheck in each of the 10 pay periods between January 25, 2015 and June 13, 2015 (pay period 25).  The first paycheck effected by this reduction will be the check issued to employees on February 13, 2015.
  3. Staff who have 1-3 temporary salary reduction days should schedule their days off with supervisory approval, by June 27, 2015.  The salary reduction days should be recorded on the PHR timesheet as Admin Leave-Furlough Plan (in the paid leave area).

Section 3:  Faculty – Furlough Days

Furlough plan savings for faculty will be achieved through furlough days.

  1. Eligible Faculty will have their furlough amount recovered through the use of actual furlough days, and will have furlough deductions from only the state and auxiliary funded portion of the salary.  The target number of furlough days will be based on the total actual salary of any state and auxiliary funding as of January 16, 2015.  Grant and contract funding will not be used to determine the number of target furlough days nor the amount of the furlough deductions.
  2. Furlough days should be recorded by the faculty member as “Furlough” on the PHR Faculty Leave Record between January 25, 2015 (beginning of pay period 16) and May 30, 2015 (end of pay period 24).
  3. Departmental PHR administrators are responsible for creating manual pay adjustments for the furlough day(s) used, and apply the furlough pay adjustment amount only to the portion of the faculty member’s total eligible salary that is funded from state and/or auxiliary sources.
  4. Faculty who are partially paid from grants are expected to maintain effort equivalent to their salary proportions.  In general, this means that on furlough days, they are expected to meet research obligations.

For assistance, contact the PHR Service Center at 301.405.7575 or email ContactUHR@umd.edu.

[1] State, Auxiliary/Self-Support, and Dedicated funding sources that begin with 011, 012, 013, or 017 (except 0122 & 0123/cost share accounts-match funds on G&C, 01292/Maryland Industrial Partnerships, or 01294104/Mid-Atlantic Consortium/MAX-E&G)

Last updated: February 10, 2015