University of Alabama at Birmingham
FIXED INCREMENT COMPENSATION PAYMENT POLICY
March 27, 1996
(Replaces policy dated May 18, 1994.)
A Fixed Increment Payment (FIP) is designed to reward the performance of outstanding employees who are not eligible for base salary increases because the salary proposed for them would exceed the maximum of the salary band to which their job is assigned.
A Fixed Increment Payment is a one-time payment in lieu of a base salary adjustment made to an employee whose performance is outstanding and whose salary is at, or above, the maximum of the salary band for the person's assigned classification.
Eligibility for receiving a Fixed Increment Payment is determined as part of the annual budget process. The amount of an employee's Fixed Increment Payment will be determined using criteria consistent with established criteria for determining annual salary adjustments within the unit. Employees whose annual salary adjustments would place them over the maximum for the salary band for their position may receive (1) a base salary adjustment for that portion which would bring them to the maximum of the assigned band and (2) a Fixed Increment Payment for that portion which would be above the maximum.
A Fixed Increment Payment may be granted to the same employee in subsequent years if the same circumstances exist. Such payments in subsequent years are not automatic. The employee's circumstances must be reviewed annually, and the employee must fulfill the same conditions each year, including outstanding performance as reflected on performance appraisal documents.
If granted, a Fixed Increment Payment will be made as a lump sum payment as part of the annual budget cycle. Assistance with determining eligibility or with calculating the amount of the payment is available from the Compensation Division of the Office of Human Resource Management.
The Vice President for Financial Affairs and Administration is responsible for procedures to implement this policy. At a minimum, those procedures must include the following:
The procedures for implementation may be revised from time to time by the Office of the Vice President for Financial Affairs and Administration without affecting the policy itself.