State of California M E M O R A N D U M REFERENCE CODE: PML 95-053 DATE: December 15, 1995 TO: Agency Secretaries and Department Directors Personnel Officers and Labor Relations Officers FROM: Department of Personnel Administration Classification and Compensation Division SUBJECT: Transition of Managerial Positions That Meet Career Executive Assignment Criteria CONTACT: Joe Broderick (916) 324-9397 or Calnet 454-9397 Office Vision: DPA (JABRODER) Internet: JABRODER@SMTP.DPA.CA.GOV The Department of Personnel Administration (DPA) and the State Personnel Board (SPB) jointly issued Personnel Management Liaison Memorandum 95-042 on September 18, 1995 announcing the intended transition of managerial positions that meet current Career Executive Assignment (CEA) criteria from civil service classes to a CEA broad band. The SPB item to effect the transitions was sent by the DPA to departments, excluded/supervisory employee organizations, and the SPB under a cover memorandum dated November 17, 1995. The SPB item will be heard at the January 3, 1996 SPB meeting in Sacramento. It is important to stress three critical points regarding the proposed transition process. First, only those managerial positions that meet the current CEA category criteria will be identified for transitioning. Second, incumbents of positions that meet the CEA criteria will not be forced to transition. Third, the Department of Finance will not provide additional funding to implement the conversion process. "CEA Band" The five current CEA levels will be consolidated into one broad pay band with a minimum monthly salary of $4,811 and a maximum monthly salary of $8,199 for all positions except a few high-level positions requiring licensure as a medical doctor or attorney and some educator and law enforcement positions that exceed the $8,199 salary figure. The band will be extended for these positions to $9,732. "Transition of Managers to CEA" Departments may offer a one to five percent salary increase to any manager who agrees to transition to the CEA category in accordance with the provisions of DPA Rule 599.674(b). Any resulting salary compaction should be resolved through the pay for performance process as should all future salary movements within the new broad pay band. The Department of Finance will not provide funding for the transitions to the new CEA band. The incumbents of managerial positions that meet the existing CEA criteria will be given the option of transitioning to the CEA category or remaining in their current classes. Those who do transition will retain reinstatement rights to their former classes. Those who do not transition will remain in their current classes, and retain their managerial designations, salaries, and benefits. Positions that meet the CEA criteria and are not transitioned because the incumbents do not elect to do so shall be flagged and transitioned when vacant. Incumbents of managerial classes in which no positions meet the existing CEA level criteria will remain in the classes and the classes will retain their managerial designations, benefits, and salaries. Incumbents of positions that do not meet the existing CEA level criteria in a class in which other positions do meet the criteria will remain in the class and retain their managerial designations, benefits, and salaries. "Special CEA Classes" The special CEA classes were established primarily for salary purposes; however, a few were established to allow for outside recruitment. Incumbents of these special classes shall be transitioned to the new pay band except for those cases in which departments can demonstrate the need for outside recruitment. "Mechanics of the Transitioning Process" Appointing powers, in consultation with their CCD analysts at the DPA, will develop a duty statement that includes a key position description and an organization chart for each managerial position. The departments and CCD analysts will determine which positions meet the CEA category criteria. The CCD analysts will retain files of the materials and the DPA will submit summaries of the positions being transitioned to the SPB for inclusion in SPB Information Calendars. The transition of managerial positions in this program shall be completed by June 30, 1996. The SPB will conduct post-audits every two months during the transition period. "Transition of Employees in the Current CEA Band and Special CEA Classes to the New Band" The transition of CEA employees from the current CEA band and the special CEA classes to the new band shall be effected as of one date, May 1, 1996, for ease of implementation by the State Controller's Office. "Reporting Requirements" Each department shall provide the DPA and the Department of Finance with a report on October 1, 1996, that lists all CEA positions and the incumbents' salaries. The report shall also show the salary increases granted during the transition process. The DPA shall consolidate these reports and provide the data to the Governor's Office. The DPA will provide a form to use for this report at a later date. "CEA Process Following the Transition Process" The DPA and the SPB will jointly assess the transition of the managers to the CEA category and determine the most effective process to use in the future. "Attachments to This Memorandum" Attachment A contains a time frame for this project. Attachment B contains answers to some anticipated questions. Please distribute copies of Attachment B to your managerial employees by January 19, 1996. The Classification and Compensation Division (CCD) analysts will be contacting departments shortly to initiate planning for the transition. We have attempted to anticipate and address as many issues as possible; however, it is inevitable that other issues will be raised and we will work with you during the transition period to resolve them. Please contact your department's CCD analyst if you have questions or if you wish to schedule a meeting. Mike Vargas Program Manager Attachments ATTACHMENT A TIME FRAME FOR THE TRANSITIONING PROCESS* November 17, 1995 The DPA submitted a SPB Item for inclusion in the January 3-4, 1996 Calendar that reflects the support of the SPB and delegates the CEA approval process to the DPA during the transition period. The SPB item was also submitted to excluded/supervisory organizations and all State departments. December 15, 1995 The DPA distributes this PML to all State departments and excluded/supervisory organizations to provide a more in- depth description of the transition process. March 31, 1996 State departments and CCD analysts identify managerial positions that meet the current CEA criteria; develop key position descriptions, organization charts, and other supporting documentation; and offer incumbents the option to transition to the CEA category. May 1, 1996 State departments transition current incumbents of the CEA band and special CEA classes to the new CEA pay band. June 30, 1996 State departments complete conversion of managers to the CEA category. October 1, 1996 State departments submit reports of CEA positions and incumbents' salaries and the salary increases granted during the transition process to the DPA and the Department of Finance. * The SPB will post-audit transition decisions March 1, 1996; May 1, 1996; and July 1, 1996. ATTACHMENT B QUESTIONS AND ANSWERS REGARDING THE CEA TRANSITION PROJECT The following questions have been raised frequently during discussions with management staff of various departments regarding the transition of managerial employees to the CEA category. Question 1: Will all managerial employees be transitioned to the CEA category? Answer: No, only the incumbents of managerial positions that meet the existing criteria for inclusion in the CEA category will be asked to transition. Question 2: If my position meets the current CEA criteria, will I be required to transition? Answer: No, you will have the option of transitioning or remaining in your current class. Question 3: If my position meets the current CEA criteria and I decide not to transition, will I retain my managerial designation and benefits? Answer: Yes, you will retain your managerial designation and benefits. Your department would, of course, have the option of transferring you to another managerial position that does not meet the CEA criteria. Question 4: What happens to me if my position does not meet the criteria for inclusion in the CEA category? Answer: You will remain in your current class and retain your managerial designation and benefits. Question 5: Will I have to take an examination to transition to the CEA category? Answer: No, the transition will be made by transfer. Question 6: If I transition to the CEA category and continue to perform the same duties I performed in the general civil service class and my CEA appointment is terminated, what will happen to me? Answer: You will either be reinstated to your former class and continue to perform the same duties or you will be appointed to a vacant position in your former class. The appointing power may also offer you a position in a class at the same salary level as your former class which you would have the discretion of accepting or rejecting. Question 7: What incentive is there for me to transition to the CEA category? Answer: Departments are authorized to offer one to five percent salary increases based on performance and available funding. There will be no additional funding provided by the Department of Finance. Question 8: What happens to me if I transition to the CEA category, later accept another CEA position performing different duties, and then have my CEA appointment terminated? Answer: You will have reinstatement rights to the class you were in when you first transitioned to the CEA category. If there are no vacancies in the class, you will be reinstated to a reestablished position in the class and the department will have to resolve the overstaffing through the layoff process. The appointing power may also offer you a position in a class at the same salary level as your former class which you would have the discretion of accepting or rejecting. Question 9: What are the criteria used to determine if a position meets the criteria for inclusion in the CEA category? Answer: The following is a brief summary of the criteria used to determine if a position is appropriately allocated to the CEA category. (1) The position must have significant responsibility for the development, adoption, or implementation of "policy" related to the mission of the department. (2) If the position is a supervisory one, it must have "managerial responsibility" for subordinate professional supervisors. (3) In a small department (less than 1,000 employees) the position must be in the first two "organizational levels"; in a medium-sized (1,000 to 4,000 employees) or large (over 4,000 employees) department the position must be in the first three "organizational levels". In some large departments (usually those with over 7,500 employees) there may be a few positions in the fourth "organizational level" that meet the CEA category criteria. (4) The "scope of responsibility", as measured by size of department, size and composition of professional staff, nature of department mission and the role of the position in meeting that mission, and the total number of CEA and exempt positions in the department, must be comparable to that of other CEA positions. More detailed information is available regarding the CEA category criteria that the Department of Personnel Administration will make available to all departments to use in determining which positions should be converted. Question 10: When will the transitions occur? Answer: The Department of Personnel Administration submitted a SPB item to the five-member SPB to be heard at their meeting scheduled in Sacramento on January 3-4, 1996. The transitions will commence after the SPB adopts the item and before July 1, 1996.