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TO AMEND SECTION 8-11-940, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERFORMANCE PAY INCREASES FOR STATE EMPLOYEES, SO AS TO PROVIDE FOR A MINIMUM INCREASE OF THREE PERCENT, BEGINNING IN FISCAL YEAR 2005-2006, FOR AN EMPLOYEE WHO MEETS OR EXCEEDS PERFORMANCE REQUIREMENTS, TO PROVIDE THAT A STATE AGENCY MAY FUND A NONRECURRING BONUS UP TO TWO PERCENT FOR AN EMPLOYEE WHO EXCEEDS PERFORMANCE REQUIREMENTS, AND TO PROVIDE FOR ADJUSTMENT OF THE THREE PERCENT INCREASE TO REFLECT FUNDING BY THE GENERAL ASSEMBLY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 8-11-940 of the 1976 Code, as added by Section 13, Part II, Act 612 of 1990, is amended to read:
"Section 8-11-940. (A)(1) Performance increases must be based upon performance appraisals containing the following categories:
(1)(a) below performance requirements - no increase;
(2)(b) meets performance requirements - two three percent increase;
(3)(c) exceeds performance requirements - three percent increase;
(4) substantially exceeds performance requirements - four percent increase.
(2) An employee receiving an 'exceeds performance requirements' rating on his most recent appraisal may be awarded a recurring increase no less than one percent and no greater than three percent, but not exceeding the maximum of the pay band and a nonrecurring bonus of up to two percent. The amount of the increase received by an employee with an 'exceeds' performance rating must be based on a plan developed by the respective agency, and funding for a pay increase must come from the agency's existing budget. An employee receiving a 'below performance requirements' rating may not receive an increase and is subject to removal from the position in accordance with the substandard performance process of the Employee Performance Management System.
(3) The dollar amount of each performance increase must be added to the employee's base pay until the pay level of the employee has reached the maximum of his grade or executive compensation level. After the employee has reached maximum pay in his grade or executive compensation level, he may continue to receive performance pay but it must not be added to the base pay.
(4) The dollar amount of each nonrecurring bonus must not be added to the employee's base pay.
(B) The estimated cost of these performance increases, based upon predetermined norms, is two and one-half percent of the payroll of each agency. If the General Assembly provides more or less than two and one-half three percent for performance increases, the percentage of three percent increase of for each category of performance must be adjusted accordingly."
SECTION 2. This act takes effect upon approval by the Governor for fiscal years beginning in 2005-2006.
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