FY 27 Central Funds (Fall 2026)

This document provides an overview of the base building adjustments and performance bonus initiatives that will take place for FY 2027 and provides specific details about the process and steps that HR and departments will need to complete.

Overview

The UW Campus has provided a central pool of $12.5 million total to be allocated to schools/colleges/divisions for FY 2027 Discretionary Compensation Fund (DCF) and Performance Bonus Fund (PBF) Central Funds Initiatives. The focus will be on addressing compensation related issues/challenges related to lower-paid employees, retention and pay compression and rewarding and retaining high performers. 

SMPH will receive $633,821 to provide base adjustments and $1,639,038 in performance bonuses to eligible staff 

  • The program will focus on rewarding and retaining high performers and to address compensation related issues/challenges related to retention and pay compression. 
  • Departments will be asked to consider:
    • Performance increases that fall within our performance guidelines to recognize exceptional performance
    • Market-competitive pay increases up to the competitive range for an employee's title
    • Pay increases to address specific retention concerns
    • Pay compression as a result of a dynamic recruitment market and its impact on offers to new employees will also be considered.
  • For base adjustments, campus funding support ONLY for those fully or partially funded on 101, 131 & 150 funds.
  • There are no program specific funding requirements for performance bonuses 
  • Departments may consider providing a base increase for faculty due to retention concerns. Faculty nominations should be rare and limited to exceptional cases. 

Central Funds Timeline

Central Funds Timeline
Date Action Item 
September 25 Central Funds analysis spreadsheet distributed to departments
October 19 Program Kickoff, additional materials including nomination spreadsheets distributed
October 23 SMPH HR Compensation open gym dedicated to central funds 
October 19-November 9 Departments review population and make base increase and bonus nominations on distributed forms, email forms to SMPH Compensation Inbox, copying HRBP 
November 10 - November 16 HR team reviews eligibly of nominated employees
November 17 - November 24 SMPH Comp team reviews and compiles nominations 
November 25 Files due to Vice Chancellor for review  
November 29 Effective date of all increases and lump sum payments
December 2 Mass upload spreadsheet due to CCoE, Final VC approval due to VC
December 2-23 HR Lake Team partners with department to create and distribute base adjustment and lump sum award memos to employees. Will need to wait until mass upload is complete in Workday 
December 24 Paycheck date that will reflect pay adjustments 

Base Adjustments 

Base Adjustments Program Eligibility

  • Academic Staff, University Staff, Limited Employees, Faculty 
  • Employees whose positions are partially or fully funded on 101, 131 & 150 funds are eligible 
    • Requests can be made for employees not on 101 funds, but program funds cannot be utilized for approved increases. Departments must cover the cost. Please ensure department leaders are aware that program funds can ONLY be used for employees partially or fully funded on 101, 131 & 150 funds.
  • Employees with an FTE 20% - 100%
  • Employees must have completed their initial probationary or evaluation period & have a summary probation evaluation with a rating of "Meeting Expectations" complete by November 1, 2026 to be eligible for performance increases 
    • Employees within their initial probationary or evaluation periods may be eligible for market-based or parity pay increases via the base building program if they have completed the first 6 months of their evaluation period. The SMPH Compensation Team does recommend that departments prioritize pay increases to employees who have successfully completed their initial evaluation period and who have been identified as high performers.
  • Employees must have completed all required UW-Madison and SMPH training
  • Supervisory Staff must be current with their employee performance evaluations
    • All summary and probationary evaluations due August 31 must be completed by November 1, 2026 
  • Employee does not have documented performance issues 
  • Employee is not a rehired annuitant
  • Employee has not received a performance bonus and/or base salary increase in FY27
  • Faculty whose compensation is established annually via the department compensation plan are not eligible

Considerations when making nominations

Program funds have been allocated to SMPH to support both base-building salary increases and one-time performance recognition. Central funding provided is limited and will not support all requests. Departments and units should anticipate the need to contribute local funding to support most salary increase recommendations submitted through these programs. Current and future budget capacity should be taken into account as departments assess the employee population and areas of greatest need. This is not an “across the board” compensation exercise.  

The budget provided to SMPH for FY27 is significantly smaller than previous years. The overall base adjustment budget for the school is $633,821. SMPH will not be provide individual budget allocations to departments due to the reduction in overall funds. If a large portion of a department's employee population is supported on 101, 131 or 150 funds there may be an opportunity to nominate additional employees. Please take this into consideration when making nominations that could utilize program funds. Departments will be asked to identify nominations that will utilize program funds on the nomination spreadsheet. Costing allocation information will need to be provided for nominations that will not utilize program funds. 

Each department has been provided with a department analysis spreadsheet to help analyze the department employee population's compensation. The analysis spreadsheet is not 'locked' in any way. It is being provided as a tool for departments to use to analyze the employee population. Additional columns/rows, information can be added or removed as departments see fit. Department/Unit leaders will also be provided a base increase/bonus nomination spreadsheet. The nomination spreadsheet is what will need to be submitted to the HR team for review. The nomination spreadsheet is what will be used to process any base increase/bonus recommendations that are approved via the review process. 

*Please note that the data used in the analysis spreadsheet was pulled in late August 2026.*

Special attention should be given to lower-paid employees who compensation may be most impacted by market pressures. The CCF base building program is designed to promote the review of staff salaries as a part of ongoing compensation strategy to:
  • Provide pay increases to our lowest paid employees
    • Recognition of exceptional performance
    • Retention risk
    • Significant market, compression, or parity concerns

Market - Competitive Increases

  • The department analysis spreadsheet identifies the market-competitive range listed for each employee.
  • The UW market-competitive range is equal to the 25%-75% of the salary range identified for the employee's title - this is the second and third quartile of the salary range.  
  • Each employee will have the current Position in Range (PIR) listed.
  • Leaders can request a market-competitive increase for an employee who has a PIR that is below the market-competitive range, 25% 

Market - Retention Increases

  • Market retention increases can be recommended when there is evidence of a serious retention problem. This can include a recent pattern of employees in the same discipline/unit leaving to take positions outside UW-Madison or UW System with comparable responsibilities at higher salaries.
  • Units should use this type of adjustment only to retain employees with exemplary performance and highly-valued expertise.
  • Consider internal salary relationships (parity) of employees with similar roles when determining the amount of the requested retention increase. 

Parity Increases 

  • Parity requests should be used to: 
    • To correct for inequity compared to staff of similar training, experience, and responsibilities.
    • To correct for inequities that are created by hiring new employees at rates higher than existing staff (when necessary to recruit well-qualified candidates). 
    • To address significant pay compression; where there is little difference in salary between employees who have distinct differences in their respective knowledge, skills, experience, abilities, and/or reporting structures or organizational structure stance.

Performance Increases:

  • Performance increases should be used to provide a salary increase to an employee with notable and sustained performance that meets or exceeds job standards. 
  • An employee must have successfully passed their probation/evaluation period. Employees on probation or serving in an evaluation period are not eligible for a performance increase.
  • The amount of a performance increase requested for an employee must fit within our campus and SMPH guidelines. 
Increases based on Performance
Performance

Emerging in Grade     (0-25% PIR):

Established in Grade(25%-75% PIR):

Advanced in Grade    (75% - 100% PIR)

Exemplary 4-6% increase 3-5% increase 1-3% increase
Meets Expectations 3-5% increase 2-4% increase 0-2% increase
Needs Improvement 0% increase 0% increase 0% increase

*Employees who are in a category B title do not have a PIR. These titles are assigned to salary ranges that do not have a max, such as Researchers or Scientists. We do not have a market informed range for these titles, and therefore cannot accurately calculate a PIR. We recommend providing an increase based on performance if you wish to nominate an employee in a category B title. The amount of the increase should be based on the level of performance for the employee and also take into consideration parity of employees in similar roles within the department. Increases should still fall within our performance guidelines and remain at 6% or below. 

Additional considerations

  • Adjustments to salaries on non-101, 131 & 1501 funding must be made with departmental funds. Program funds cannot be utilized in these instances. 
  • All rate increases requested need to be at least the equivalent of 1% of the employee's full time rate

Base Adjustment Nomination Form Instructions

Base Adjustment Requests

We highly recommend utilizing the analysis spreadsheet that was provided to departments to help inform nomination decisions and to gather data that you will need to be entered into the nomination form (Empl ID, job code, etc.) 

A few notes about the spreadsheet:

  • All columns in BLUE must be manually entered 
  • All columns in ORANGE will auto-populate (and are locked) 
  • All columns in GREEN will be confirmed and filled in by SMPH HR

The HR team will be responsible for confirming eligibility for all nominated employees in the nomination spreadsheet. 

If you would like to complete a base adjustment request for an employee

    • Utilize the department analysis spreadsheet to gather information required on the nomination form (empl ID, job code, etc.) 
    • Utilize the column descriptions tab to better understand how to complete the nomination form
    • All blue and green columns in the base adjustment tab of the nomination form must be filled out to make a request
    • Provide the desired percentage increase amount in the Proposed % Increase 
    • Choose the appropriate reason from the base adjustment-Reason drop-down menu.
      • Performance
      • Market Competitive
      • Market Retention
      • Parity
    • If the reason is 'Performance' ensure that the increase percent requested fits within the performance increase guidelines. Review the employee's current PIR and review the below performance guidelines to determine the appropriate percentage of an increase: 
Increases based on Performance
Performance

Emerging in Grade     (0-25% PIR):

Established in Grade(25%-75% PIR):

Advanced in Grade    (75% - 100% PIR)

Exemplary 4-6% increase 3-5% increase 1-3% increase
Meets Expectations 3-5% increase 2-4% increase 0-2% increase
Needs Improvement 0% increase 0% increase 0% increase
    • If the increase reason is Market Competitive, ensure that the current PIR is below 25%, the new PIR should also remain at 25% PIR or lower
    • Provide a justification for the increase in the Justification column based on the recommended sample wording in the Justifications tab in the nomination spreadsheet.
    • The 'UW Pay After Increase' column will show the proposed updated annual base pay amount for the employee 
    • Available 101 funds will be listed based on information provided on the spreadsheet that can be utilized for each specific request. The department must decide how much of the increase amount they would like to use program funds for. 
    • We know some departments will make requests using local funds (non101, 131, 150). In these situations, they will need to provide the costing allocation for the employee in the far right columns. If the employee is funded on multiple costing allocations, each will need to be listed. 

Base Adjustment Justification Language

Performance Template Language

"EMPLOYEE has a favorable annual performance evaluation on file and has completed all required UW-Madison and SMPH training."

Market - Competitive Template Language

"The Department of 'DEPARTMENT' requests a base salary increase for EMPLOYEE due to Market Competitive review.
A thorough review of EMPLOYEEs compensable factors to include ability to perform the full scope of responsibilities associated with the role, the level of knowledge, skills, and directly applicable experience that he/she possesses, and the level of proficiency exhibited in all aspects of the job. As a result of this review, we have determined that EMPLOYEE should be compensated in the QUARTILE quartile of the salary range to allow us remain competitive in the market and to address possible retention concerns. We request to increase EMPLOYEEs base salary to $[Column AA] to address this. This increase will result in a new PIR score of [Column AB]. 

Market - Retention Template Language

"The Department of DEPARTMENT requests a base salary increase for EMPLOYEE due to Market Retention. [ PROVIDE SUMMARY OF THE RETENTION ISSUE; may include serious retention problem due to increased interest to take outside positions with comparable responsibilities at higher level of salary (examples: applying/interviewing for positions outside UW; being actively recruited for positions outside UW); recent pattern of employees in the same discipline/unit leaving to take positions outside UW; or an employment offer from outside UW.] EMPLOYEE consistently has excellent performance in their work. We wish to retain the employee because [ LIST REASONS FOR RETENTION]. In recommending this increase, the department studied the salary structure of the department, the external market and internal parity. "

Parity/Compression

The Department of DEPARTMENT requests a base salary increase for EMPLOYEE due to Parity. [ PROVIDE SUMMARY OF THE parity or compression issue which could include:

  • To correct for inequity compared to staff of similar training, experience, and responsibilities.
  • To correct for inequities that are created by hiring new employees at rates higher than existing staff (when necessary to recruit well-qualified candidates). 
  • To address significant pay compression; where there is little difference in salary between employees who have distinct differences in their respective knowledge, skills, experience, abilities, and/or reporting structures or organizational structure stance.]

Performance Bonus Fund (PBF)

Performance Bonus Program Details 

The budget provided to SMPH for one time performance bonuses is $1,639,038. We will be providing individual budgets to each department for performance bonuses which should be entered on the performance bonus tab under 'budget amount'. An employee's position does not need to be partially or fully on 101 funds to be eligible. Departments can also nominate employees for bonuses utilizing non-program funds, costing allocations will need to be provided on the nomination form for any bonus requested that will not utilize program funds. 

Academic Staff, University Staff, Limited employees and Faculty
  • The PBF program is designed to provide departments with the opportunity to recognize exceptional work and/or service, often above and beyond employee job responsibilities, and especially tied to a specific project, task, or initiative via a one-time performance payment. 
  • Campus funding support available regardless of position funding.
  • It is recommended that leaders prioritize high performers in lower salary grades, especially those who have positions not funded on 101 funds.
  • Performance bonuses to eligible staff must fit within the range of 2-4% to recognize as many eligible and deserving employees as possible. 

Performance Bonus Program Eligibility

  • Academic Staff, University Staff, Limited Employees, Faculty
  • Faculty whose compensation is NOT set annually via the department compensation plan
  • Employee position does not need to be partially or fully on 101 funds to be eligible 
  • Staff with an FTE 20% - 100%
  • Employee must have completed their initial probationary or evaluation period by November 1, 2026 & have a summary probation and in good standing complete by November 1, 2026 to be eligible for performance lump sums 
  • Employee must have completed all required UW-Madison and SMPH training
  • Supervisory Staff must be current with their employee performance evaluations
  • Employee does not have documented performance issues 
  • Employee is not a rehired annuitant

Performance Bonus Considerations when making nominations

The PBF program will provide opportunity for recognition of exceptional work and/or service, often above and beyond employee job responsibilities.
  • There are likely many employees who will be eligible for consideration of a performance bonus payment via the PBF program 
  • It is recommended that departments provide performance bonuses to eligible staff that fit within the range of 2-4% to recognize as many eligible and deserving employees as possible 
  • Performance bonuses can be provided to employees regardless of position funding source 
  • All performance bonus requests need to be at least the equivalent of 1% of the employee's full time rate
  • It is recommended to prioritize high performers in lower salary grades, especially those not on 101 funds.
  • Units can request performance bonuses for staff that will not utilize the provided funding allocation. Costing allocation information will need to be provided in each of these situations on the nomination form 

Performance Bonus Nomination Form Instructions

A few notes about the spreadsheet:

  • All columns in BLUE must be manually entered 
  • All columns in ORANGE will auto-populate (and are locked)
  • All columns in GREEN will be confirmed and filled in by SMPH HR
  • Utilize the department analysis spreadsheet to gather information required on the nomination form (empl ID, job code, etc.) 
  • Utilize the column descriptions tab to better understand how to complete the nomination form
  • Provide the percent increase requested for each employee (2-4%) 
  • Indicate the amount of program funds that will be utilized for each bonus
  • If non-program funds are being utilized, include the costing allocation for the bonus in the far right column.
  • The HR team will be responsible for confirming eligibility for all nominated employees in the nomination spreadsheet. 

    HRBP To Do List:

    Base Adjustment and Performance Bonus Nomination Form

    The submission deadline for the base adjustment/performance bonus nomination spreadsheet to the compensation team is Monday, November 9th. We are asking the HR team to then complete the following steps by Monday, November 16th. These steps can be completed earlier if the department provides their spreadsheet to the HR team on an earlier date. 

    As the HRBP for your department you will be responsible for confirming the following for each employee: 

    • All columns for each employee are complete and include accurate information. On both the base adjustment tab and the performance bonus tab, please confirm employee eligibility: 
      • Staff with an FTE 20% - 100%
      • Employees must have completed their initial probationary or evaluation period & have a summary probation evaluation with a rating of "Meeting Expectations" complete by November 1, 2026 to be eligible for performance increases 
        • Employees within their initial probationary or evaluation periods may be eligible for market-based or parity pay increases via the base building program if they have completed the first 6 months of their evaluation period. The SMPH Compensation Team does recommend that departments prioritize pay increases to employees who have successfully completed their initial evaluation period and who have been identified as high performers.
      • Employees must have completed all required UW-Madison and SMPH training
      • Supervisory Staff must be current with their employee performance evaluations
        • All summary and probationary evaluations due August 31 must be completed by November 1, 2026. 
      • Employee does not have documented performance issues 
      • Employee is not a rehired annuitant
      • Employee is not a faculty member whose compensation is established annually via the departmental compensation plan.
      • Employee has not received a performance bonus and/or base salary increase in FY27 if so, additional justification will be needed. 

    For Base Adjustment Requests

    • Confirm that base increase is at least 1%.
    • Confirm that the base increase percentage matches our guidelines.
      • If the Increase reason is Performance than confirm the following:
        • If current PIR is 0-25% (emerging in grade) the percent increase is 3-6%
        • If current PIR is 25%-75% (established in grade) the percent increase is 2-5%
        • If current PIR is 75%-100% (advanced in grade) the percent increase is 1-3%
        • *An increase that is above 1% but lower the above guidelines can be requested. For example a 2% increase for an employee emerging in grade. We however, highly recommend that requests fall within our guidelines.
      • If the increase reason is Market Competitive confirm that the employees current PIR is below 25% and that the new PIR listed in column is at or below 25%.
    • Confirm that the department has listed if the base increase will utilize program funds. If 'YES' confirm that the percentage of salary on 101, 131, 150 is listed 
    • Confirm costing allocation information is listed in the far right columns if any local funds will be utilized to support the request.

    For Performance Bonus Requests

    • Confirm that bonus has a percent of at least 1%.
    • Confirm that the department has listed how much of each lump sum will utilize program funds (this can be $0). 
    • Confirm costing allocation information is listed in the far right columns if any local funds will be utilized to support the request.

    Post Nomination Communication, Evergreen Tool, Letter Templates

    Post Nomination Communication

    TBD

    Campus Evergreen Tool (mail merge tool)

    SMPH HR Lake Teams can utilize the Evergreen tool that we have used in the past to create and send notifications. This is not mandatory, you are welcome to utilize the process that will work best for your departments.
    • A copy of the mail merge tool can be found here: Mail Merge Tool
    • A copy of the Mass Email Tool Memo Template can be found here: Mass Upload Memo Template
      • *note you will need to download the memo template, you will not see a preview in Box 

    Central Funds letter templates

    • Base increase template 
    • Performance bonus template


    Keywords:
    Central funds, FY27, DCF, PBF 
    Doc ID:
    164622
    Owned by:
    Allyson H. in SMPH Human Resources
    Created:
    2026-10-05
    Updated:
    2026-10-19
    Sites:
    SMPH Human Resources