Cutback Clarifications from the Top

Here's more information from the executive team at OHSU:


As a member of the OSHU Leadership Team, you help implement Vision 2020 and shape the culture of OHSU. Please share this message with your staff, as appropriate.

OHSU Leadership Team members:

Though there are some signs that the worst of the global economic downturn has passed, its impacts will likely be felt at least through FY10. Many of the actions OHSU took to address the downturn must be maintained in order to continue our progress towards financial sustainability. To that end, I'm writing with reminders and clarifications on several issues as you finish budgeting and begin preparations for FY10. Please share this with your staff, as appropriate.

Hiring, salary, and one-time payments freezes. The hiring, salary and one-time payments freezes instituted in late 2008 will remain in effect in FY10. Clarifications include:
• Salaries from Grants. The freeze does apply to salaries paid from grants, in accord with Federal Cost Accounting Standards. It applies to bonuses, annual increases and merit increases, and applies to faculty and others paid from federal grants (except postdocs, noted below).
• Variable Z Productivity Component. The freeze does not pertain to the variable Z productivity component of salary for clinical faculty. The variable Z component recognizes continued individual productivity, which remains essential.
• Postdoctoral Fellow Salaries. Postdoctoral fellows – trainees and researchers – should receive pay increases based on postdoc rank. Postdoctoral researchers and trainees must be paid the same way to comply with Federal Cost Accounting Standards and NIH regulations.
Benefits notice: healthcare. As announced in May, OHSU's contributions to employee healthcare benefits will be frozen at 2009 levels during 2010. Clarifications are as follows:
• What is the change? Employees who enroll in health benefits through OHSU receive a monthly contribution from OHSU to help pay the cost of coverage they select. For calendar year 2010, OHSU's contribution amounts will be frozen at 2009 levels.
• Who does it apply to? This change affects all unclassified employees, including unclassified administrative, faculty and research employees. At the appropriate time, similar changes for ONA-represented and AFSCME-represented employees will be discussed.
• When is it effective? Calendar year 2010.
• Q&A available on the Staff News blog.
Benefits change: retirement. As announced in January, OHSU's retirement contributions to the University Pension Plan (UPP) are changing. Clarifications are as follows:
• What is the change? The contribution to the UPP Employer account will remain the same. The contribution to the Employee Account will change from 6% to 4%. This brings parity to the current levels of UPP and PERS contributions paid by OHSU.
• Who does it apply to? This change affects UPP participants who are faculty, research and unclassified administrative employees. At the appropriate time, similar changes for ONA-represented and AFSCME-represented employees will be discussed.
• When is it effective? The changes were effective Jan. 1, 2009, for unclassified new hires, and July 1, 2009, for other unclassified employees who participate in the UPP.
• Q&A available on the Staff News blog.
Clarification: pay cuts and furloughs. The Executive Leadership Team has received a number of inquiries asking whether we considered pursuing an enterprise-wide strategy of pay cuts and/or furloughs. Our approach during this economic downturn has been to provide overall reduction targets to individual units. Unit leaders have broad latitude in achieving those reductions. Furloughs should not be used for unclassified employees, because of the wage and hour implications. Managers considering furloughs for other employees should work with their Human Resources Business Partner. In general, most managers are choosing to make reductions in a way that does not impact the take-home pay of employees.

Thank you for your attention to these issues. If you have further questions, please feel free to direct them to Rick Bentzinger, Vice President of Human Resources.

Steve Stadum
Executive Vice President