Overall Rating Silver - expired
Overall Score 55.88
Liaison Jim Walker
Submission Date April 30, 2014
Executive Letter Download

STARS v2.0

University of Texas at Austin
PA-9: Employee Compensation

Status Score Responsible Party
Complete 3.00 / 3.00
"---" indicates that no data was submitted for this field

Number of employees:
14,146

Number of staff and faculty covered by sustainable compensation standards, guidelines, or policies; and/or collective bargaining agreements:
14,146

Does the institution have employees of contractors working on-site as part of regular and ongoing campus operations?:
No

Number of employees of contractors working on campus:
---

Number of employees of contractors covered by sustainable compensation standards, guidelines, or policies and/or collective bargaining agreements:
---

A brief description of the sustainable compensation standards, guidelines, or policies; and/or collective bargaining agreements covering staff, faculty and/or employees of contractors:

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


Does the institution wish to pursue Part 2 of this credit (assessing employee compensation)?:
Yes

Number of staff and faculty that receive sustainable compensation:
14,146

Number of employees of contractors that receive sustainable compensation:
---

A brief description of the standard(s) against which compensation was assessed:

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.)


A brief description of the compensation (wages and benefits) provided to the institution’s lowest paid regular, full-time employees:

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.


A brief description of the compensation (wages and benefits) provided to the institution’s lowest paid regular, part-time employees:

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.


A brief description of the compensation (wages and benefits) provided to the institution’s lowest paid temporary (non-regular) staff:

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.


A brief description of the compensation (wages and benefits) provided to the institution’s lowest paid temporary (non-regular, adjunct or contingent) faculty:

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.


A brief description of the compensation (wages and benefits) provided to the institution’s lowest paid student employees (graduate and/or undergraduate, as applicable):

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 local legal minimum hourly wage for regular employees:
7.25 US/Canadian $

Does the institution have an on-site child care facility, partner with a local facility, and/or provide subsidies or financial support to help meet the child care needs of faculty and staff?:
Yes

Does the institution offer a socially responsible investment option for retirement plans?:
Yes

The website URL where information about the institution’s sustainable compensation policies and practices is available:
Data source(s) and notes about the submission:

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.


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.

The information presented here is self-reported. While AASHE staff review portions of all STARS reports and institutions are welcome to seek additional forms of review, the data in STARS reports are not verified by AASHE. If you believe any of this information is erroneous or inconsistent with credit criteria, please review the process for inquiring about the information reported by an institution or simply email your inquiry to stars@aashe.org.