Critical Compensation Fund will provide targeted pay raises

Last week UW-Madison announced a second phase of the Critical Compensation Fund (CCF). The fund will provide targeted pay increases to address equity, retention, market influences and, for classified employees, exceptional performance. The total amount of money allocated for CCF correlates to 1 percent of employee payroll. Employees who receive CCF awards will receive at least a 2 percent raise.

Campus has delegated the authority to deans and directors to approve CCF adjustments for faculty, academic staff and limited employees. For classified adjustments, however, divisions will need to apply the campus Discretionary Merit Compensation policy.

Details of the CCF include:

  • Divisions may submit their adjustments to the Office of Human Resources any time until March 31, 2014.
  • Adjustments may be effective as early as the first pay period after receipt of the request by the division.
  • All increases will be base adjustments; there will not be any lump sum awards this year.
  • Each division should strive to provide CCF awards to approximately 30 percent of employees, in each category, based on the attached data provided by the Budget Office. Under no circumstance can the proportion of division recipients fall below 20 percent of the employees in each category (classified, faculty, academic staff, limited appointees).
  • Employees who received a CCF increase in 2012-13 are eligible to receive a CCF increase again this year. However, at least 50 percent of 2013-14 CCF funds in each division must go to employees, within each employee category, who did not receive CCF adjustments in 2012-13. Classified employees who received lump-sum CCFs in 2012-13 are excluded from this calculation.
  • Divisions must fully distribute 1 percent of the salary base regardless of the source of funds. Deans and directors may use their school, college or division funds to exceed the funds allocated through CCF.
  • Deans and directors must review CCF awards to ensure they reflect an equitable distribution based on gender, race and ethnicity.

If you have any questions, please contact your HR representative, or visit <> for more information.