Positions Funded by Auxiliary Activity (Self-Funded)

House Bill 11-1301, commonly referred to as the ‘Higher Education Flexibility Bill,’ was enacted during the 2011/2012 legislative session. This bill significantly broadened the criteria used to determine which positions are exempted from the State Personnel System under Colorado Revised Statute §24-50-135 in educational institutions.  Effective January 2013, all professional positions of an institution of higher education and those positions fully funded by grants or gifts, would be exempted from the State Classified (SC) system. Positions funded by auxiliary (or self-funded) activity were discretionary under the revised statute and CSU opted not to move these types of positions at that time.

Effective July 1, 2023, CSU will ‘exempt’ from the state personnel system new or vacant positions funded by auxiliary activity, similar to positions funded by gifts or grants previously. As has been the case since the statute was revised, employees in qualifying positions may elect to remain classified or, if they choose, can vacate their SC role and ‘convert’ to Administrative Professional (AP).

The information below is being provided to address questions related to which positions are impacted by this change and to assist employees in determining what options are available to them.

• How is eligibility for exemption from the State Classified system determined?

As noted above, Colorado statute proscribes what types of positions are exempted, most frequently based either on the role’s responsibilities or the funding source. Human Resources determines what staff positions are deemed ‘professional’ in accordance with statutory language.   The Colorado Revised Statute explicitly designates a professional position as:

• • position that involves the exercise of discretion, analytical skill, judgment, personal accountability, and responsibility for creating, developing, integrating, applying, or sharing an organized body of knowledge that characteristically is:
    • acquired through education or training that meets the requirements for a bachelor’s or graduate degree or equivalent specialized experience; and
    • continuously studied to explore, extend, and use additional discoveries, interpretations, and applications and to improve data, materials, equipment, applications, and methods.

Positions fully funded (100%) by gifts, grants, or revenues generated through auxiliary activities are identified by their fund source to determine eligibility for exemption from the State Classified system.  Auxiliary activities are institutional activities managed and accounted for as self-supporting activities. Accounts assigned to CSU’s Fund Group B are considered self-funded/auxiliary accounts (identified on page 12 of FPI 1-3 Funds/Sub-Funds) with the exception of accounts designated as Recharge Centers (RECHAR)  or 21 accounts. Positions funded on 21 accounts will be assessed individually to determine if they are considered ‘self-supporting.’

• When were/will the changes be effective?

  Effective July 1, 2023, vacant or new auxiliary-funded positions will be filled as an Administrative Professional. State Classified employees in positions that are designated eligible for exemption based on auxiliary-funded activities may elect to vacate their classified position and assume an Administrative Professional role by completing a ‘SC-AP election form’.

• Why are we making this change now?

  Administrative Professional roles provide CSU with greater flexibility and discretion related to recruitment, compensation and benefits, and to readily adapt to circumstances at a local level. Additionally, this model represents a ‘best practice’ among institutions of higher education in CO – CSU is the only institution that currently does not exercise this statutory option. Also, in recent years, CSU has invested in bolstering AP infrastructure to better serve and support this employee population. Finally, the change is regarded by leaders in impacted areas as advantageous for their units, as well as the university, allowing for flexibility while providing options for current employees.

• If a SC position is funded by auxiliary activity, will a degree be required when it is AP? 

  The Vice President for Human Resources is issuing a degree waiver for all positions within the AP Technical/Support series, which will account for most auxiliary positions. If the classification is expected to be in the Professional/Individual Contributor or Management series, the hiring authority may request a degree waiver for a position, if desired. If an existing SC employee vacates their position and assumes an AP assignment, they will not need to possess a degree.                                                          

• If a SC position is eligible for overtime, will it be exempt if it becomes AP?

  Eligibility for overtime is based almost entirely on the duties of the position. Changing the employment type will not impact this status, provided all else remains consistent.

• If I am currently in a position funded by auxiliary activity, will I be forced to switch to an Administrative Professional position? 

  No, only vacant and new positions will automatically become AP. The decision for current SC employees on whether to vacate their position will be the employee’s choice. Current State Classified employees may stay in their current position and remain as a State Classified employee.

• How will my salary be affected if I choose to transfer to Administrative Professional?

  Initially, your salary will remain the same when you change employee groups.  Going forward, any annual salary adjustments will occur through the Academic Faculty/Administrative Professional Salary Exercise and will be based on your department’s process, typically incorporating factors such as performance, equity, and market.

  State Classified employees receive salary increases as negotiated between the state and COWINS. For FY 24, increases may vary based on classification and an individual’s specific state experience.

  Currently, AP employees do not earn various types of premium pay that is available to SC employees, including on-call pay. For more information on this topic, please contact your assigned Sr. Human Resources Business Partner.  

• Can I be promoted if I choose to remain State Classified or will I have to transition to AP if I take on additional duties?

  There may be instances when individual eligible positions are reallocated to a higher level (promoted) within the State Classified System based on the addition of higher-level duties. However, as is the case now, if a position is posted as an AP assignment and a current SC employee is selected as the top candidate, there is not the option for that individual to remain a SC employee.

• Are there different rules and policies governing State Classified and Administrative Professional employees? 

  The University is responsible for ensuring compliance with all federal and state laws, regardless of the employee type. Additionally, the University utilizes a shared governance model (which includes input from all employee groups) for its own rules, policies, procedures and other decisions.

  State Classified employees are subject to the State Personnel Board Rules and Personnel Director’s Administrative Procedures (State of Colorado Department of Personnel).  These rules, and direction given from the Department of Personnel and Administration, guide hiring, compensation and benefits. Additionally, classified employees are covered by the COWINS partnership agreement that governs many aspects of the employment relationship.

  Administrative Professional employees are subject to the rules outlined in the Academic Faculty/Administrative Professional Manual. Implementation of these rules falls to various offices across the University, including HR.

• Will I need to serve a new probationary period? 

  No, Administrative Professional employees do not serve a probationary period.

• If I switch to an AP position, will I be able to remain in PERA (Public Employees’ Retirement Association)? 

  State Classified employees must participate in PERA. If you decide to transfer, you may have the option to keep PERA as your retirement plan selection if you have at least 12 months of PERA service credit.  The Benefit Comparison Guide details the eligibility requirements further.

  You may also elect to enroll in the University’s Defined Contribution Plan (DCP) through Fidelity Investments instead of PERA. This is a one-time, irrevocable¹ choice if you qualify to remain in PERA but choose to elect into the University’s DCP. If you do elect to enroll in the DCP when you are eligible to remain in PERA, you will have two options regarding your PERA account: a) terminate your membership, authorize PERA to transfer all contributions and interest earned Fidelity (DCP vendor), and waive all future PERA benefits; or b) terminate future contributions and maintain your PERA account for future retirement benefits.

  If you do not have the 12 months of service credit for PERA, you will enroll in the University’s DCP. PERA accounts for members with less than 12 months of service will automatically be transferred to Fidelity.

  You are encouraged to contact PERA directly at (800) 759-7372 or at www.copera.org to review your individual circumstances.

  1 To elect PERA as your retirement plan you must be an active PERA participant with at least 12 months of service credit, an in-active member with that amount of service credit or a current PERA retiree. However, unless you are a PERA retiree, you may not elect PERA as your retirement plan if you have previously been employed by a public college or university in Colorado offering an “ORP” if during that employment you made an election to participate in that institution’s ORP. In addition, if your election at that time was to participate in PERA, you may not now elect the ORP. Such elections are by law irrevocable. Effective January 1, 2011, present PERA retirees may elect either PERA or the ORP as their retirement plan each time they are reappointed.

• What happens to my sick and annual leave should I choose to transfer to Administrative Professional? 

  Any leave you have accrued, both sick and annual leave, will transfer to your new position provided it is in a benefit-eligible assignment (i.e. at least 50%).  Regular, full-time, 12-month AP employees accrue 2 days (16 hours) of annual leave and 1.25 days (10 hours) of sick leave each month.  AP employees who are less than full-time, but at least half-time, accrue leave at a pro-rated amount based upon their FTE.

  There is not a sick leave cap for AP employees.  Upon retirement after at least five years of service, employees are paid one-fourth (1/4) of unused sick leave up to a maximum of fifteen days.  Upon termination, sick leave is forfeited and is not reinstated should you return to employment with the university. Currently, a State Classified employee would receive payment for one-fourth (1/4) of their accrued sick leave up to their individual sick leave cap.

  The annual leave cap for AP employees is 48 days.  Any accumulation over this amount is forfeited on July 1st each year.  Upon termination or retirement after six months of employment, the employee is paid accrued annual leave up to a maximum of 24 days minus the number of days of annual leave taken during the 30 working days immediately prior to the date of employment separation. Currently, a State Classified employee’s annual leave would be paid out up to the maximum accrual rate.

  Conversion of State Classified excess sick leave accrued over the employee’s cap at a ratio of 5 hours of sick leave to 1 hour of annual leave at fiscal year-end would not occur as an Administrative Professional employee. This conversion is unique to the State Classified system.

  In addition to sick and annual leave, State Classified and Administrative Professionals have several other leave programs that may vary based on employee type (Family Medical Leave, Parental Leave, etc.). Individuals are encouraged to review additional information on the HR website related to various leave programs.

• My spouse and I are both enrolled in the state’s health insurance. How do I find out the differences in how much I will pay when I go to the doctor on AP insurance plans? 

  Both the state and CSU have multiple medical insurance programs and premiums/costs will vary based on which plan is selected, how many dependents are enrolled, etc. CSU offers two no-cost premium medical plans to AP employees who select employee only coverage.  CSU’s Total Compensation Calculator is a great option to identify the different costs associated with various benefit elections. For individual guidance, however, we suggest scheduling an appointment with one of our Benefits Administrators to review plan features and costs like deductibles, copays and coinsurance for each plan. Please reach out to MyHR@colostate.edu to schedule an appointment with a Benefit Administrator.

• What are the advantages of moving to Administrative Professional rather than staying State Classified? 

  One type of employment category is not inherently ‘better’ than the other. Each individual employee should assess their personal circumstances and determine what is most advantageous for them. If you would like to discuss your specific circumstances, please contact your assigned Sr. HR Business Partner and they will schedule time to meet and review your information.

• I’ve decided I want to vacate my state classified role and move into an AP assignment. What do I need to do now? 

  You should meet with your supervisor and advise them of your decision. You will also need to complete and have your supervisor sign the request form. Finally, a new AP position description will need to be submitted for review by Human Resources. Additional information related to this process is available on the HR website.