State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2000-042

  DATE:
  July 24, 2000

  TO:
  Personnel Officers
  Employee Relations Officers

  FROM:
  Department of Personnel Administration
  Policy and Operations Division

  SUBJECT:
  Supplemental Salary Adjustment Program - Excluded Employees 
  - Program Termination 

  CONTACT:
  Jerri Judd, Personnel Management Analyst
  (916) 324-0439, CALNET 454-0439
  FAX: (916) 327-1886
  EMAIL: JerriJudd@dpa.ca.gov


  In October 1998, the Department of Personnel 
  Administration (DPA) issued PML 98-053 which established 
  the Supplemental Salary Adjustment Program (SSAP) for 
  excluded employees.  While the intent of the SSAP is to 
  provide departments with flexibility in addressing 
  recruitment/retention problems and rewarding individual 
  employee's for outstanding job performance, departments 
  have shown little interest in the program.
  
  In November 1999, DPA issued a memorandum to Agency 
  Secretaries and Department Directors indicating that the 
  program would likely be terminated.  Feedback from that 
  memorandum indicated some support, but the vast majority of 
  departments supported other management compensation 
  alternatives and the program was judged to have had only 
  minimal success.  In light of the foregoing, we have 
  determined that the recently announced management 
  compensation package consisting of leave buy back and 
  employer paid 401(K) contributions provides a more 
  appropriate form of recognition for excluded employees than 
  SSAP.  Details on these new programs will be released 
  shortly.
  
  Effective immediately, SSAP for excluded employees is 
  terminated.  However, supplemental salary adjustments for 
  individual employees implemented under PML 98-053 will be 
  handled as follows:
  
  -When a permanent salary adjustment provided an 
  employee a higher base salary within the salary range, 
  the employee shall retain that higher base salary.
   
  -When a temporary supplemental salary adjustment was authorized by 
  Pay Differential 182 (Temporary Supplemental Salary Adjustment 
  Differential) the employee may continue to receive the pay 
  differential until the approved expiration date.
  
  Pay Differential 182 shall no longer be authorized pursuant to SSAP 
  and will be abolished by July 1, 2001.
  
  Questions from Personnel Office staff should be directed to their 
  departmental analyst in DPA's Classification and Compensation Program.
  
  
  
  
  Peter J. Strom
  Chief