University of Texas at Austin
PA-9: Employee Compensation

The University Budget Council reviews employee compensation policy annually, in light of budgetary and competitive considerations, to ensure equitable and competitive pay in accordance with the provisions of the compensation philosophy: To fulfill its mission, the university must attract and retain outstanding staff members. To meet institutional staffing needs and priorities, the compensation system has the following objectives: ·         Establish compensation levels for positions on the basis of their relative internal worth and external competitiveness within relevant labor markets ·         Reward employees on the basis of work performance ·         Administer pay equitably and consistently ·         Establish a compensation policy that is consistent with the judicious expenditure of funds entrusted to the university ·         Ensure accountability for compliance with The University of Texas System Board of Regents' Rules and Regulations and statutory requirements

Minimum wages at the university have increased 45% over the past 11 years from $7.61/hour. to $11.01/hour or $22,884/year While we have made great gains in the minimum wage including a 9% increase in 2006 and a 10% increase in 2007, budget constraints prohibited further increases since. Our current picture is as follows: University of Texas’s current minimum wage of $11.01/hour is comparable to that found at 6 of its peer institutions. The University of Texas’s minimum wage/livable wage ratio is about 9% higher than the average minimum wage/living wage ratio of the 6 peer colleges relative to each university’s respective geographic area. University of Texas’s current minimum wage of $11.01/hour or $22,884/year is competitive with, the market worth for comparable jobs in the area. The City of Austin and Travis County both also have minimum wages of $11.00 per hour. Since University of Texas provides benefits which provide an additional 30% in in-direct compensation above the $11.01/hour. rate (i.e. $14.30 or $29,744/year.), the current university minimum wage level is well above federal poverty minimum for a single person ($11,490 /year) as well as the current federal and state wage minimum ($7.25/hour. or $15,080/year.)

We have a minimum wage of 11.01 / hour or $22,884 and no employees have an annualized salary rate below this. All employee types are treated equally in this regard.

We have a minimum wage of 11.01 / hour or $22,884 and no employees have an annualized salary rate below this. All employee types are treated equally in this regard.

We have a minimum wage of 11.01 / hour or $22,884 and no employees have an annualized salary rate below this. All employee types are treated equally in this regard.

We have a minimum wage of 11.01 / hour or $22,884 and no employees have an annualized salary rate below this. All employee types are treated equally in this regard.

The lowest permissible student hourly rate is $7.26/hour for a non-academic position and $8.80 for an academic position. No student may be hired at below minimum wage.

The university offers 2 options for mandatory retirement programs for employees, Teacher Retirement System of Texas (TRS) and Optional Retirement Program (ORP). TRS is a defined benefit retirement plan governed by Internal Revenue Code Section 401(a). All eligible employees of The University of Texas at Austin are automatically enrolled in TRS on their first day of employment. Employee and employer contributions go into a large trust fund that's managed by knowledgeable professionals. Retirement benefits are based on legislatively determined formulas. You are vested after attaining five years of service credit with a right to a retirement benefit. There are also disability, death and survivor benefits available to TRS members. ORP is a defined contribution plan governed by Internal Revenue Code Section 403(b). You choose the investments made and the benefits are based on their performance. You're vested after one year and one day of participation with a right to both your and your employer's contributions. ORP is more portable than TRS. But, federal tax law prohibits 403(b) plans from providing disability benefits like those provided by TRS. The university is required to notify ORP participants of their responsibilities. An ORP participant is responsible for the selection and monitoring of ORP companies and investments. The university has no fiduciary responsibility for the market value of a participant’s ORP investments or for the financial stability of the ORP companies chosen by the participant. There are also voluntary retirement programs employees may choose to participate in at their own discretion.