Cost of Living Adjustment (COLA)
In April, eligible KSU employees will begin receiving a $5,000 Cost of Living Adjustment (COLA) for FY22 that was recently approved by Governor Brian Kemp and Georgia General Assembly.
The majority of pay adjustments will be completed in April, but there are many unique situations, such as mid-year hires, job changes, and leave statuses, that will require manual pay adjustments into May.
Who is eligible?
The $5,000 salary increase is for all active, regular, benefits-eligible faculty and non-academic staff at KSU. The increase will be prorated based on full-time equivalency (FTE). Employees not receiving benefits, including temporary workers and those working less than 30 hours per week, are not eligible for the increase. There may be exceptions to the eligibility population based on unit structure and funding.
How will the increase be distributed?
For eligible employees to receive up to a $5,000 increase — prorated based on FTE — for FY22, a salary adjustment will be awarded prior to June 30, the end of this fiscal year, in the following manner:
- In April, eligible employees will receive a one-time pay supplement of up to $3,750
based on the number of pay periods an individual was employed by the state between
July 1, 2021, and April 1, 2022, and FTE.
- The remaining balance, up to $1,250, will be included on the normal payment schedule to finish out the fiscal year. The one-time payment is subject to all applicable FICA taxes, federal income tax, and state income tax.
The second part of the proposed adjustment, a $5,000 increase to employees’ base pay, is part of the FY23 budget proposal, which has now been fully approved. Additional communications regarding this proposal will be sent once we have a final FY23 budget.
When will payments be issued?
- Eligible employees paid biweekly will receive a separate check for the one-time supplemental payment in addition to their regular paycheck on April 22.
- Eligible employees paid monthly will receive a separate check for the one-time supplemental payment in addition to their regular paycheck on April 29.
Frequently Asked Questions (FAQs)
Who is eligible for the lump sum payment?
The $5,000 cost of living adjustment for FY22 is for all active, regular full-time, benefits eligible faculty and nonacademic staff of the University System of Georgia who were actively employed on July 1, 2021. Eligible faculty and staff hired after July 1, 2021, will be eligible for a pro-rated amount. The increase will be prorated based on full time equivalency (FTE) and hire date. Non benefited employees, including temporary and those working less than 30 hours are not eligible for the increase.
Are 9/10 Month employees eligible for the pay supplement?
Yes, 9/10-month employees are eligible for the pay supplement. If a 9/10-month employee’s employment begins before or during August 2021, they will be eligible for the full supplement payment. If hired after August, the supplement will be prorated, same as all other full-time employees. In addition, a 9/10-month employees will receive the increase to their base salary during the months of April and May.
Are part-time employees eligible?
Employees working less than 30 hours (less than .75 FTE) are not eligible.
Are students eligible for the increase?
Temporary workers such as students, GRAs and rehired retirees are not eligible.
Are partially benefited employees eligible?
Only active, regular, benefits eligible faculty and nonacademic staff working 30 hours, or more are eligible.
Is the pay adjustment “retirement eligible”?
No, the one-time supplement is NOT eligible for retirement benefits. The remaining amount that will be included on the normal payment schedule to finish out the fiscal year is eligible for retirement benefits.
Does an individual who transfers into an eligible position at a USG Institution or from another state of Georgia agency during the eligibility period qualify for the supplement?
Individuals employed in an eligible position by another state of Georgia agency who transfer to an eligible position within USG institution during the eligibility period may qualify for the supplement.
If an employee tranfers between USG institutions during the fiscal year, what effective date will be used for the one-time AFY22 supplemental pay?
The USG Service Date will be utilized to determine their pro-ration for the supplemental pay, if needed.
If an employee moved from one position at KSU to a new position at KSU after July 1, 2021, will they still be eligible for the supplemental payment?
Yes, employees that move from one position at KSU to a new position at KSU after July 1, 2021, will still be eligible for the supplemental payment.
If an employee terminates prior to the payment date, is the employee still eligible for the one-time AFY22 supplemental payment?
No. the employee must be in active HR status during the pay period associated with the payment date to be eligible.
Is an employee eligible for the salary increase if the resulting salary places them over the institutions pay grade maximum for their job classification?
Yes, cost of living adjustments that are approved through the legislative budget process and USG policy may exceed the established range and should be documented by the institution.
Timing and Pay
Will the supplement payment be paid as a separate check?
Yes. In alignment with the State of Georgia’s approach, the supplemental payment will be processed and paid as a separate payment and will be taxed at supplemental rates established by Federal and State taxing agencies. These rates include 22% Federal withholding, 6.2% OASDI withholding (social security), 1.45% Medicare withholding, and State withholding.
Will the FY23 increase be in addition to the FY22 increase already in place?
No. The FY23 increase extends the pay adjustment currently in effect for FY22. It is not in addition to the increase already provided.
How will the salary increase be applied to hourly employees?
Hourly employees will receive the lump sum payment on April 22, 2022. The remaining payments will be added to the employee’s hourly rate effective April 3 and will be paid with their regular hours.
How will the remaining FY22 adjustments be paid?
All regular, benefits eligible faculty and staff of the University System of Georgia who are actively employed on April 1, 2022, will receive an increase to their base pay as a Cost-of-Living Adjustment (COLA). The increase will be prorated based on full time equivalency (FTE). Non benefited employees, including temporary and those working less than 30 hours are not eligible. There may be exceptions to the eligibility population based on unit structure and funding. Effective April 1, full-time, salaried/12-month employees will receive a pay adjustment of $416.66 a month. Full-time 9/10 month faculty will receive a pay adjustment of $500.00 per month to their base pay. All eligible hourly/biweekly employees, will receive a pay adjustment of $2.40 per hour. Part-time employees' adjustment will be applied based on standard hours.
How will the base salary increase be taxed?
Payments will be subject to all applicable FICA Taxes, Federal Income Tax, and State Income Tax. Federal and State Income tax will be withheld at the employee’s normal tax rate.
Is the base salary increase retirement eligible?
Yes, the base pay increase is eligible for retirement benefits.
Are grant funded employees eligible for the AFY22 pay supplement?
Yes, grant funded employees are eligible for the supplement payment.