The salary schedule that pertains to employees in this bargaining unit shall be the schedule found in Appendix G of this Agreement.

Employees may receive salary adjustments on the salary schedule due to General Salary Increases (GSIs) and/or in-range progressions.

An employee shall be assigned to a rate within the open salary range appropriate to his/her classification.

A.

B.

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B.

C.

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F.

G.

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D.

Bonus/stipend programs shall be established as provided below. Such programs shall consist of one-time lump-sum payments to employees which are not re-occurring base salary increases. The funding for the Bonus/Stipend Programs was established from monies set aside ($1,112,709, inclusive of benefits) pursuant to the parties' 2000-2003 Agreement.

Upon the expiration of this Agreement, the bonus programs provided in this Agreement shall continue in effect utilizing the available funds as specifically provided in this Agreement, unless modified in accordance with HEERA. However, CSU shall not be required to provide additional funds for the bonus programs during the term of this contract or in future contracts unless such additional funds are provided in a successor collective bargaining agreement.

A lump-sum bonus shall be paid to all eligible employees who, during any of the fiscal years 2003/04 through the expiration of this Agreement, complete a 5-year anniversary of continuous campus employment beginning at the employee's 10th year (employee's 10th, 15th, 20th, 25th, 30th, 35th, 40th, etc. years of qualified monthly service on the campus).

To be eligible, the employee must not have received a performance evaluation with an overall rating below satisfactory (or its equivalent) during the 5-year period immediately preceding the employee's appropriate 5-year anniversary (10th, 15th, 20th, 25th, 30th, 35th, 40th, etc.). For eligible employees paid on a 12-month basis, the bonus amount shall be equal to five percent (5.0%) of the employee's monthly salary rate as of the employee's 5-year anniversary date, multiplied by twelve (12). Eligible employees on other pay plans shall receive an appropriate pro-rata amount. Each employee's bonus amount shall be expressed as a percentage of the employee's previous calendar year's earnings (including overtime, if any).

For employees with a time base, qualified monthly service is defined as a month in which the employee is in pay status for eleven (11) or more workdays, regardless of the number of hours of work each day. For intermittent employees, any month in which an employee works at least forty-two (42) hours will count as a month of qualifying service.

A year of qualifying service means: twelve (12) consecutive pay periods and ten (10) months of qualifying service for a 10-month or 10/12 employee; twelve (12) consecutive pay periods and eleven (11) months of qualifying service for an 11/12 employee; twelve (12) consecutive pay periods and twelve (12) months of qualifying service for a 12-month employee; and completion of one (1) full academic year of qualifying service for an academic year employee.

The Long-Term Satisfactory Service Bonuses for each fiscal year shall be paid no later than September 1 following the end of the fiscal year.

Decisions regarding the granting or denial of a Long-Term Satisfactory Service Bonus shall not be subject to Article 10, Grievance Procedure. However, APC may grieve an alleged violation of a specific term of this provision 23.7, subject to provision 10.5.G.4.

The Educational Achievement Stipend Program established in the parties' 2000-2003 Agreement shall be continued for employees who receive a master's and/or doctoral degree during the term of this Agreement. The amount of each stipend for a master's degree shall be $2,272.37, and the amount of each stipend for a doctoral degree shall be $2,840.46. Educational Achievement Stipends shall be paid out of available bonus/stipend funds as specified in provision 23.7.A above, provided sufficient funds are available from the pool of $1,112,709. If sufficient funds are not available, the parties will meet to discuss whether to reduce the amount of the stipends or to delay some or all of the payments until the next year in which sufficient funds are available.

The Educational Achievement Stipends for each fiscal year shall be paid no later than September 1 following the end of the fiscal year.

In each fiscal year of this Agreement, all active or on-leave bargaining unit employees with a time base as of May 1 of the applicable fiscal year shall receive a Budget Shortfall Mitigation Bonus. The amount of the BSM Bonus shall be the same amount for each full-time employee and a pro-rated amount, based on time base, for each part-time employee.

The amount of each year's bonus will be determined by dividing the remaining bonus/stipend funds by the number of eligible full-time equivalent bargaining unit employees. The remaining funds are the funds in the pool of $1,112,709, inclusive of benefits (established pursuant to the parties' 2000-2003 Agreement), less the funds paid for that fiscal year's Long-Term Satisfactory Service Bonuses and Educational Achievement Stipends.

Should the BSM Bonus be less than $100.00 per full-time equivalent bargaining unit employee, the bonus will not be paid and the pool available for BSM Bonuses will be rolled over to the next fiscal year's funds available for BSM Bonuses.

BSM Bonuses for 2003/04 will be paid no later than December 1, 2005. BSM Bonuses for 2004/05 will be paid no later than February 1, 2006. If the BSM Bonus for 2004/05 can be paid by December 1, 2005, the parties may agree to consolidate the bonuses for 2003/04 and 2004/05. BSM Bonuses for subsequent fiscal years will be paid no later than November 1 immediately following each fiscal year.

The Merit Bonus Program funds shall be dedicated to providing one-time, lump-sum bonuses awarded in recognition of above-average performance on a project, recognition of one-time or special project performance, for members of a team in recognition of their performance as a team based on criteria established by the campus, above-average performance in general, or other significant contributions to the campus and/or CSU community.

The Merit Bonus Program award shall be expressed as a percentage of gross pay for the period of time of performance for which the bonus is awarded.

The decision of the President, the President's designee, or other appropriate administrator as to who is to receive a Merit Bonus Program award and/or the amount of an award shall not be subject to Article 10, Grievance Procedure. However, APC may grieve an alleged violation of a specific term of this provision 23.8 subject to provision 10.5.G.4.

All funds in the Merit Bonus Program pool shall be awarded prior to the end of the fiscal year in which the funds are available.

In addition to the Merit Bonus Program pool established for General Fund employees, a similar pool shall be established for all non-General Fund employees on each campus. The amount of the Merit Bonus Program pool for non-General Fund employees shall be the same percentage amount of their salaries and related benefit costs as is the case for General Fund employees. An individual campus may augment its General Fund employee Merit Bonus Program pool above the amount specified in the Agreement, and the non-General Fund Merit Bonus pool may exceed the amount provided for herein.

The CSU may award lump-sum bonuses (not permanent increases in base salary) for reasons identified below. Such bonuses may be awarded at the discretion of the President at any time and only for the following three (3) reasons: