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CAL POLY POMONA FOUNDATION, INC. CALIFORNIA STATE POLYTECHNIC UNIVERSITY, POMONA

PERSONNEL COMMITTEE

Wednesday, May 13, 2020 2:00 pm – 3:00 pm

Zoom Screen Share and Conference Call

AGENDA ACKNOWLEDGEMENT OF MEMBERS OF THE PUBLIC who may or may not be commenting on a specific item or making a general comment. CONSENSUS ACTION ITEMS PAGE Consensus Action Items: Items in this section are considered to be routine and acted on by the committee in one motion. Each item of the Consent agenda approved by the committee shall be deemed to have been considered in full and adopted as recommended. Any committee member may request that a consent item be removed from the consent agenda to be considered as a separate action item. If no additional information is requested, the approval vote will be taken without discussion. 1. Minutes February 12, 2020 Danielle Manning 2-3 ACTION: Approval ACTION ITEMS 2. Employment Related Budget Assumptions Jared Ceja 4 3. Proposed Amendments to 457 Plan CARES Act & RMD Jared Ceja 5-9 David Prenovost 4. Proposed Amendments to 457 Plan FLPP & Unforeseeable Emergency David Prenovost 10-15 5. PARS Vacation/Sick Leave Conversion Program Jared Ceja 16-18 David Prenovost 6. Annual Update to Salary Grades and Position List Jared Ceja 19-25 INFORMATION ITEMS 7. Annual Employee Performance Review Update Nora Fernandez 26 Diane Maldonado

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Personnel Committee Minutes – 02/12/2020

CAL POLY POMONA FOUNDATION, INC. PERSONNEL COMMITTEE MEETING MINUTES

February 12, 2020 Present: Ms. Danielle Manning, Ms. Joy Tafarella, Ms. Sharon Reiter, Dr. David Speak, Mr. Michael Vazquez,

Ms. Deborah Goman, and Dr. Lea Dopson Absent: Ms. Mei Lien Chang, and Mr. James Priest Staff: Mrs. Claudia Burciaga-Ramos, Ms. Jenny Dennis, Ms. Nora Fernandez and Mr. David Prenovost Visitors: Mr. Gary Cline, Sheila Jones and Ms. Britt Braham - all via WebEx CALL TO ORDER Danielle Manning called the meeting to order at 11:02 am. CONSENSUS ACTION ITEMS 1. Meeting Minutes

The minutes for November 19 and November 22, 2019 were approved by consent. A motion was made by Joy Tafarella and seconded by James Priest.

ACTION ITEMS 2. Longevity Plan Revisions

David Prenovost summarized the Foundation Management’s proposal to modify the Federal taxable 457(b) funding model with the Federal tax free HRA funding model for its Longevity Pay Plan, along with the modified vesting schedule under the proposed HRA funding model. Moved and seconded by David Speak and Joy Tafarella; motion approved unanimously.

3. Salary Range David Prenovost presented the annual Salary Scale Review. Each year Foundation reviews its compensation policies and practices. An essential tool used in compensation administration is a current, relevant, and accurate salary scale. This year Foundation Management is requesting to update the salary scale by increasing the maximum rate for positions in Grades 6 through 15 by 3%. These changes are necessary to help ensure our salary range is aligned with market conditions while mitigating the longer term effects of salary compression. These changes also support Foundation’s requirement to meet comparability standards with the University.

After discussion, the Personnel Committee tabled this item to the Board of Directors meeting on May, 2020. Moved and seconded by Joy Tafarella and Deborah Goman. Motion approved unanimously.

INFORMATION ITEMS 4. CalPers Public Agency Valuation Reports

David Prenovost gave a brief review of the California Public Employee Retirement System (CalPERS) pension plans for each of the three Cal Poly Pomona Foundation pension plan tiers with established 2020-21 FY employer contribution rates, among other important pension plan data. • Miscellaneous First Tier Plan is based on the 2% at 55 formula with an estimated funding level of 81.5 percent.

The projected employer contribution rate for FY 2019-20 is 12.48% of covered payroll. However, when combined with the minimum required payment for the Unfunded Accrued Liability (UAL), the rate as a percentage of payroll exceeds 24%.

• Miscellaneous Second Tier Plan is based on 2% at 60 formula with an estimated funding level of 98.1% percent.

The projected employer contribution rate for FY 2019-20 is 9.25%. • PERPA Miscellaneous Plan based on 2% at 62 formula with an estimated funding level of 97%. The projected

employer contribution rate for FY 2019-20 is 8.05%.

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Personnel Committee Minutes – 02/12/202

Cal Poly Pomona Foundation management continues to take pro-active steps to pay down its UAL by making payments above the minimum required payments toward the UAL obligation for all 3 rate plans, which helps ensure these plans remain financially viable for the foreseeable future, please see attached CalPERS miscellaneous first tier plan alternative seven-year amortization schedule for UAL.

Meeting adjourned at 11:54 am Respectfully submitted, Danielle Manning Danielle Manning Chair, Personnel Committee

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Memorandum Date: May 4, 2020 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Jared G. Ceja Executive Director/CEO Subject: Request for Approval of Employment Related Budget Assumptions

During the budget year there will be several key expenses associated with the overall cost of labor. Below are the assumptions for the 2020-21 budget year.

1. Educational Reimbursement/Development: $111,804

2. Wage Adjustments & reductions: $6,685,379

3. Annual Wage Increase (0%) $0

4. CalPERS Pension Plan (total): $1,950,251 (2019 was $2,159,281)

a. Normal Cost for all three plans: $1,238,993 b. UAL for all three plans: $ 711,258

5. VEBA Contribution: $0

6. Parking $90,000

Proposed Action:

WHEREAS, the Foundation management is requesting the Personnel Committee’s approval to forward to the Board of Director’s for review and consideration, effective July 1, 2020.

NOW, THEREFORE, BE IT RESOLVED, the Personnel Committee has reviewed the above assumptions and recommends approval to the Board of Directors.

PASSED AND ADOPTED THIS DAY 13th DAY OF MAY 2020

By: ________________________________ Danielle Manning, Chair Personnel Committee

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Memorandum Date: April 27, 2020 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Jared Ceja Executive Director

David F. Prenovost Senior Managing Director/CFO Subject: Proposed Amendments to 457(b) Plan for CARES Act and Required

Minimum Distribution Foundation adopted the PARS 457 Deferred Compensation Plan effective July 1, 2002, amended and restated effective January 1, 2009, to allow eligible employees to defer a portion of their unused vacation and/or sick leave into the plan during an annual Open Enrollment Period. Effective January 1, 2009, the Foundation amended the plan to allow for voluntary employee salary deferrals into the plan on a monthly basis. The Plan provides a supplemental benefit in addition to the eligible employee’s current CalPERS retirement benefit. This proposed amendment would modify the Plan to allow for distributions under the CARES Act, called coronavirus-related distributions. These distributions are permissible under any “eligible retirement plan,” including governmental 457(b) plans of up to $100,000 of the vested account balance for a taxable year on or after January 1, 2020 and before December 31, 2020 to a qualified individual. A qualified individual is someone: (1) who is diagnosed with COVID-19; (2) whose spouse or a dependent is diagnosed with COVID-19; (3) who experiences adverse financial consequences because of coronavirus-related situations such as quarantine, termination, furlough, reduction in hours, or staying home to care for children; or due to the closing or reducing hours of a business owned or operated by the individual due to coronavirus.

As the Employer, Foundation can rely on an employee’s certification that they meet one of these coronavirus-related situations to approve the distribution.

Special tax relief is provided for coronavirus-related distributions allowing the taxation of these distributions to be spread out in equal parts over three years beginning in 2020, unless otherwise desired by the recipient. The distributions will not be subject to the 10% excise tax where applicable. Additionally, these distributions can be paid back to the plan within three years of the distribution date.

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Also incorporated into the amendment is the CARES Act waiver of the requirement for a Participant or beneficiary to take a Required Minimum Distribution (RMD) who would have been required to receive an RMD from the Plan in 2020. The RMD waiver would only apply for calendar year 2020 and is not limited to those affected by COVID-19. This waiver is required under Foundation’s plan. PROPOSED ACTION: The following resolution is recommended for approval by Foundation Management: RESOLVED, that the Personnel Committee of the Board of Directors approves forwarding Foundation Management’s proposal to modify the Plan to permit distributions under the CARES Act, called coronavirus-related distributions. In addition, the amendment waives the requirement for a Participant or beneficiary to take a Required Minimum Distribution (RMD) who would have been required to receive an RMD from the Plan in 2020. PASSED AND ADOPTED THIS 13TH DAY OF MAY 2020. __________________________________ Danielle Manning, Chair Personnel Committee

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AMENDMENT TO THE PARS VACATION/SICK LEAVE CONVERSION AND SALARY

DEFERRED COMPENSATION PLAN OF CAL POLY POMONA FOUNDATION, INC.

WHEREAS, the Cal Poly Pomona Foundation, Inc. (the "Foundation") adopted the PARS Vacation/Sick Leave Conversion and Salary Deferred Compensation Plan of Cal Poly Pomona Foundation, Inc. (the "Plan"), amended and restated effective January 1, 2009; and

WHEREAS, the Foundation desires to amend the Plan in response to the

Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to allow Coronavirus-Related Distributions and temporary waiver to Required Minimum Distributions; and

WHEREAS, the Foundation has the right to amend the Plan in accordance with Section 9.2 of the Plan.

NOW, THEREFORE, BE IT RESOLVED, this amendment is intended as good

faith compliance with the CARES Act and adds the following Coronavirus-Related Distributions and temporary waiver of Required Minimum Distributions to the Plan.

1. Section 7.6, Other Distributions, is hereby amended in its entirety to add

Coronavirus-Related Distributions.

7.6 Other Distributions. Subject to Section 7.7, Employer may change the time or method of benefit payments pursuant to this Plan so long as any change in the time or method of payments is not in violation of Code Section 457 or Regulations promulgated thereunder.

(a) Coronavirus-Related Distributions. This Section 7.6 (a) which provides

for “Coronavirus-Related Distributions” as described below supersedes any Plan provision to the contrary. Section 7.6 (a) is intended to comply with section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the regulations thereunder and will be interpreted accordingly.

(1) The Employer may make Coronavirus-Related Distributions to a Qualified Individual from his or her vested Deferred Compensation Account under the Plan on or between January 1, 2020 and December 31, 2020, under one of the following conditions:

(i) The Qualified Individual is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention.

(ii) The Qualified Individual’s spouse or dependent (as defined in section 152 of the Internal Revenue Code of 1986) is diagnosed with such virus or disease by such a test.

(iii) The Qualified Individual experiences adverse financial

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Page 2 of 3

consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or other factors as determined by the Secretary of Treasury (or the Secretary’s delegate).

(2) The Employer may rely on the Qualified Individual’s certification that he or she satisfies the conditions above in determining whether any distribution to the Qualified Individual is a Coronavirus-Related Distribution.

(3) The aggregate amount of Coronavirus-Related Distributions received in 2020 by a Qualified Individual under this Plan and from any other Employer-sponsored Eligible Retirement Plan may not exceed $100,000.

(4) Coronavirus-Related Distributions are not Eligible Rollover Distributions. However, no tax withholding will apply to Coronavirus-Related Distributions.

(5) In the case of any Coronavirus-Related Distribution, unless the Qualified Individual elects otherwise, any amount required to be included the Qualified Individuals taxable income will be included ratably over the three taxable years following the distributions beginning with the taxable year of the distribution.

(6) A Qualified Individual who receives a Coronavirus-Related Distribution may, at any time during the three year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an Eligible Retirement Plan of which such Qualified Individual is a beneficiary (including this Plan if the Qualified Individual is then a Participant or beneficiary) and to which a rollover contribution of such distribution could be made under Internal Revenue Code section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16). Such repayments shall be subject to section 2202(a)(3) of the CARES Act.

(7) A Qualified Individual means a Participant, a beneficiary or an Alternate Payee with a Deferred Compensation Account under the Plan.

2. Subsection (i), Temporary Waiver of Required Minimum Distributions, is hereby added to Section 7.7 of the Plan. (i) Temporary Waiver of Required Minimum Distributions. Notwithstanding any contrary provision in this Section 7.7, in accordance with section 2203 of the CARES Act, a Participant or beneficiary who would have been required to receive required minimum distributions for the 2020 calendar year but for the enactment of the CARES Act (“2020 RMDs”) and who would have satisfied that requirement by receiving distributions that are (1) equal to the 2020 RMDs or (2) one or more payments in a series of substantially equal distributions (that include the 2020 RMDs) made at least annually and expected to last for the life (or life expectancy)

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Page 3 of 3

of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant’s designated beneficiary, or for a period of at least 10 years (“Extended 2020 RMDs”), will not receive those distributions for 2020.

3. All other terms and conditions under the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, this amendment is hereby adopted effective as of the date executed below.

CAL POLY POMONA FOUNDATION, INC.

By: David Prenovost

Its: Senior Managing Director and Chief Financial Officer

Dated:

999

Memorandum Date: April 27, 2020 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: David F. Prenovost Senior Managing Director/CFO Subject: Proposed Amendments to 457(b) Plan for FLPP and Unforeseeable

Emergency In February 2009, Foundation discontinued offering post-employment healthcare benefits to employees hired on or after March 1, 2009. In May 2010, Foundation adopted a new benefit called the Foundation Longevity Pay Plan (FLPP). The purpose of the FLPP was to offer some level of benefit to eligible newly hired employees who would not be eligible for post-employment healthcare benefits through Foundation’s group plan. The FLPP program applies to regular, full-time benefited employees hired on or after March 1, 2009, and who have worked for Foundation for 10 or more years (120 or more months). Meeting these two criteria allows an employee to receive a Foundation cash benefit via the 457 plan. A plan amendment is required to allow for these annual, discretionary, non-elective Employer contributions on behalf of FLPP-eligible employees. The Employer Contribution will be calculated based on the FLPP Participant’s Compensation, using the schedule set forth in the amendment. Employer contributions will be reviewed annually by the Board and are discretionary. The Board reserves the right to approve or not approve an Employer contribution to an eligible Employee’s Deferred Compensation Account in any given year. Employees who receive an Employer contribution to the Plan will be 100% immediately vested. The amendment would be effective for the 2019-20 Plan Year. Also incorporated into the amendment is a change with regard to unforeseeable emergency distributions. Final regulations released by the IRS no longer require the suspension of employee contributions for Participants who take unforeseeable emergency distributions on or after January 1, 2020. The amendment removes the following language: “Upon receipt of the withdrawal, Plan contributions must be discontinued for a period of twelve (12) months or such lesser period permitted by applicable regulations.” PROPOSED ACTION: The following resolution is recommended for approval by Foundation Management:

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RESOLVED, that the Personnel Committee of the Board of Directors approves forwarding Foundation Management’s proposal to modify the Plan to allow for discretionary, non-elective Employer contributions on behalf of FLPP-eligible Employees who are regular, full-time benefited Employees hired on or after March 1, 2009 with at least 120 months of benefited service with the Foundation. In addition, the amendment removes the above language with regard to unforeseeable emergency distributions. PASSED AND ADOPTED THIS 13th DAY OF MAY 2020. __________________________________ Danielle Manning, Chair Personnel Committee

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AMENDMENT TO THE PARS VACATION/SICK LEAVE CONVERSION AND SALARY

DEFERRED COMPENSATION PLAN OF CAL POLY POMONA FOUNDATION, INC.

WHEREAS, the Cal Poly Pomona Foundation, Inc. (the "Foundation") adopted the PARS Vacation/Sick Leave Conversion and Salary Deferred Compensation Plan of Cal Poly Pomona Foundation, Inc. (the "Plan"), amended and restated effective January 1, 2009; and

WHEREAS, the Board of Directors of the Foundation took action on May 25,

2010 to adopt the Foundation’s Longevity Pay Program (“FLPP”) for the purpose of encouraging employment longevity; and

WHEREAS, the Foundation desires to amend the Plan to allow for discretionary,

non-elective Employer contributions on behalf of Employees eligible for the FLPP, who are regular, full-time benefited Employees hired on or after March 1, 2009 with at least one-hundred and twenty (120) months of benefited service with the Employer, commencing with the 2019-2020 Plan Year; and

WHEREAS, the Foundation further desires to amend the Plan to comply with

recent legislation and regulations with regard to Unforeseeable Emergency and Inactive Accounts applicable to the Plan; and

WHEREAS, the Foundation has the right to amend the Plan in accordance with

Section 9.2 of the Plan. NOW, THEREFORE, BE IT RESOLVED, effective _____________, 2020,

the Plan is hereby amended as follows:

1. The definitions of “Compensation” and “Employee” under Section 2, Definitions, are hereby amended and restated in their entireties to read:

2.6 Compensation. The term “Compensation” shall mean, with respect to any Participant, only compensation from Employer that is attributable to services performed for Employer and includable in Participant's gross income for the Employment Period. For purposes of calculating the Employer non-elective contribution for an Employee eligible for the Foundation’s Longevity Pay Program (“FLPP”), “Compensation” shall mean the total annual base wages paid to an eligible Employee for the last calendar year.

2.9 Employee. For purposes of vacation and sick leave conversion deferrals, the term “Employee” shall mean all individuals who perform services for Employer and who are classified by Employer, in its discretion, as regular full-time benefited employees. For purposes of voluntary salary deferrals, the term “Employee” shall mean all individuals who perform services for the Employer and who are classified

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by Employer, in its discretion, as full-time, part-time, or temporary employees, excluding student employees, who have performed services for Employer for at least twelve (12) months prior to participating in the Plan. For purposes of the FLPP, the term “Employee” shall mean all individuals who perform services for Employer and who are classified by Employer, in its discretion, as regular full-time benefited employees, hired on or after March 1, 2009 with at least one-hundred and twenty (120) months of benefited service with Employer. The term "Employee" excludes individuals who are classified by Employer, in its discretion, as independent contrac-tors and/or consultants, employees of a person or entity other than Employer and individuals whose basic compensation for services rendered for the benefit of Employer is not paid by Employer. Individuals who are not classified by Employer as Employees shall not be deemed Employees even if the classification by Employer is determined to be erroneous, or is retroactively revised. In the event the classification of an individual who is excluded from the definition of Employee under this paragraph is determined to be erroneous or is retroactively revised, the individual shall nonetheless continue to be excluded from the definition of Employee and shall be ineligible for benefits for all periods prior to the date Employer determines its classification of the individual is erroneous or should be revised. The foregoing sets forth a clarification of the intention of Employer and prior Plan provisions regarding participation in the Plan for any Plan Year, including Plan Years prior to the amendment of this definition of “Employee.”

2. Section 4.5, Additional Employer Contributions, is hereby renamed, amended and restated in its entirety to read:

4.5 Employer Non-Elective Contributions. Notwithstanding any other provision of the Plan, but subject to Sections 4.2, 4.3, and 4.4, the Employer may make, at its discretion, annual, non-elective Employer contributions ("Employer Contributions") to a FLPP Participant's Deferred Compensation Account. The Employer Contribution will be calculated based on the FLPP Participant’s Compensation, using the following schedule:

Years of Completed Service Compensation Factor

10 2% 11 2.5% 12 3% 13 3.5% 14 4% 15 5% 16 5.5% 17 6% 18 6.5% 19 7% 20 10% 25+ 15%

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Employer Contributions will be reviewed annually by the Board and are discretionary. The Board reserves the right to approve or not approve an Employer Contribution to a Participant’s Deferred Compensation Account in any given year. Participants that receive an Employer Contribution to the Plan will be 100% immediately vested. No Participant shall have the right to elect to receive any amount contributed pursuant to this Section 4.5 as cash in lieu of a contribution. Any such Employer Contributions shall be credited to the Participant’s Deferred Compensation Account and will reduce, dollar for dollar, the annual amount the Participant can defer to the Plan. In no event shall the combined total of Participant and Employer Contributions exceed the maximum amount permitted by law.

3. Section 7.5, Unforeseeable Emergency and Inactive Accounts, is hereby amended and restated in its entirety to read:

7.5 Unforeseeable Emergency and Inactive Accounts.

(a) Employer may make distributions under the Plan in the event a Participant suffers an unforeseeable emergency. For purposes of the Plan, an unforeseeable emergency is defined as a severe financial hardship of the Participant resulting from: an illness or accident of the Participant, the Participant’s spouse, or the Participant’s dependent (as defined in section 152(a) of the Code); loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner’s insurance, e.g., as a result of a natural disaster); the need to pay for the funeral expenses of the Participant’s spouse or dependent (as defined in section 152(a) of the Code); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. For example, the imminent foreclosure of or eviction from the Participant’s primary residence may constitute an unforeseeable emergency. In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency.

(b) The circumstances which will constitute an unforeseeable emergency will depend upon the facts of each case, but, in any case, payment shall not be made under the Plan to the extent that such hardship is or may be relieved either (i) through reimbursement or compensation by insurance or otherwise, (ii) by liquida-tion of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or (iii) by cessation of deferrals under the Plan. Examples of what are not considered to be unforeseeable emergencies include the need to send a Participant's child to college, a desire to purchase a home, or the necessity to pay taxes. Withdrawals of amounts under the Plan because of an unforeseeable financial emergency will be permitted to the extent reasonably needed to satisfy the financial emergency need.

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(c) In addition to the distributions otherwise allowed under the terms of this Plan, the Board may cause the full amount credited to Participant's Deferred Compensation Account (less any federal or state taxes required to be withheld) to be distributed to him in a cash lump sum if all of the following conditions are met:

(1) The Deferred Compensation Account balance does not exceed $5,000; (2) No deferral has been made by the Participant within the two year period

ending on the date of the distribution; and (3) There has been no previous distribution to the Participant from the Plan

pursuant to this subsection.

Such distribution shall be made as soon as administratively practicable following the election by the Participant to receive such distribution.

4. All other terms and conditions under the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, these amendments are hereby adopted effective as of ______________, 2020.

CAL POLY POMONA FOUNDATION, INC.

By: David F. Prenovost

Its: Senior Managing Director and Chief Financial Officer

Dated:

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Memorandum

Date: May 4, 2020

To: Personnel Committee Cal Poly Pomona Foundation, Inc.

From: Jared Ceja Executive Director

David F. Prenovost, Senior Managing Director/CFO

Subject: PARS Vacation/Sick Leave Conversion Program

The PARS Vacation/Sick Leave Conversion Program allows the Foundation to provide eligible employees a supplemental retirement plan to the existing retirement program (CalPERS) by converting a portion of unused Vacation and Sick Leave balances to cash, and then contributing those funds directly into the employees PARS 457(b) individual account on a tax-deferred basis. The percentage of participation is fully elective by an eligible employee and the option to convert occurs on an annual basis.

A regular, full-time benefited employee is “eligible” to participate in the Conversion Program once they have completed at least 4 years of full time service with Foundation. During Foundation’s annual Open Enrollment Period, the eligible employee can elect to convert a portion of their unused vacation and/or sick leave by completing a Participant Election Form.

Employees who desire to convert vacation time must have at least 160 hours of accrued vacation time and have taken a minimum of 40 hours of vacation over the previous 12 months of employment preceding the current plan year, and then may convert up to 100 hours of vacation time for hours in excess of 160 hours. A vacation balance may not fall below 160 hours due to converting hours.

Employees who desire to convert sick leave must have more than 320 hours of sick leave available, and then may convert up to 100 sick leave hours for hours in excess of 320. A sick leave balance may not fall below 320 hours due to converting hours.

Foundation Management, as the Plan Administrator is proposing for this fiscal year 2019-20 that we suspend the sick leave conversion due to the COVID-19 Pandemic. After our discussions with PARS, (Public Agency Retirement Services) Foundation Management has concluded that we have the right to allow for a suspension of sick leave at this particular point in time per section 3.3(f):

The Employer may limit the aggregate total of sick leave that may be converted by all Participants in the Plan during an Employment Period in order to limit the amount of contributions that would be made to the Plan. The amount and method

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of reduction shall be determined as necessary by the Plan Administrator or Advisory Committee.

As of June 2020, we forecast that 74 employees will be eligible to convert some amount of vacation time in June 2020. If all 74 employees convert 100% of their allowable hours, approximately $193,703 is converted. However, based on historical participation and conversion levels, a realistic forecast of the vacation time conversion is $103,407. Notably, when an employee elects to convert unused vacation time there is no expense to Foundation since vacation amounts have already been earned and accrued. Eligible employees will be invited to an online training session in May delivered by representatives from John Hancock and PARS to learn about the advantages and disadvantages of converting leave with the program, along with investment information. Proposed Action: WHEREAS, the Foundation management is requesting the Personnel Committee’s approval to forward the following resolution to the Board of Directors for their consideration: NOW, THEREFORE, BE IT RESOLVED, the Personnel Committee has reviewed and approves forwarding the PARS Vacation Conversion Plan and suspending the PARS Sick Leave Conversion due to COVID-19 to the Board of Directors for their review and consideration at their next regularly scheduled meeting.

PASSED AND ADOPTED THIS 13th DAY OF MAY 2020 __________________________________ Danielle Manning, Chair Personnel Committee

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PARS Yearly Activity

Fiscal Year

Number of Employees Eligible for Vacation

Conversion

Number of Employees

Electing Vacation

Conversion

Percentage Electing Vacation

Conversion

$ Amount Vacation

Employees Eligible

$ Amount Vacation Employees Converted

2009-2010 49 25 51% $99,177 $47,224 48%2010-2011 53 43 81% $112,511 $68,885 61%2011-2012 56 28 50% $105,500 $61,041 58%2012-2013 69 38 55% $149,194 $58,778 39%2013-2014 51 29 57% $117,000 $49,479 42%2014-2015 65 37 57% $144,000 $69,131 48%2015-2016 55 28 51% $129,000 $73,699 57%2016-2017 58 34 59% $131,993 $74,000 56%2017-2018 41 34 83% $120,534 $63,004 52%2018-2019 55 39 71% $123,212 $88,690 72%2019-2020 74 45 61% $193,703 $103,407 EST. 53%

Fiscal Year

Number of Employees Eligible for

Sick Conversion

Number of Employees

Electing Sick Conversion

Percentage Electing Sick Conversion

$ Amount Sick Employees

Eligible

$ Amount Sick Employees Converted

2009-2010 74 41 55% $84,160 $54,387 65%2010-2011 41 29 71% $96,045 $74,142 77%2011-2012 45 30 67% $91,947 $68,879 75%2012-2013 56 31 55% $111,476 $80,002 72%2013-2014 55 42 76% $114,000 $90,591 79%2014-2015 54 30 56% $133,000 $94,391 71%2015-2016 64 42 66% $135,000 $98,318 73%2016-2017 49 32 65% $118,174 $92,500 78%2017-2018 57 44 77% $141,000 $102,647 73%2018-2019 55 42 76% $139,000 $121,308 87%2019-2020 52 35 66% $137,774 $120,238 EST.

2009-2010 $101,6112010-2011 $143,027 2011-2012 $129,9202012-2013 $138,7802013-2014 $140,070 2014-2015 $163,522 2015-2016 $172,017 2016-2017 $166,5002017-2018 $165,651 2018-2019 $209,998 2019-2020 $223,645 EST.

Fiscal Year - Combined Total

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Memorandum

Date: May 13, 2020

To: Personnel Committee Cal Poly Pomona Foundation, Inc.

From: Nora Fernandez Senior Employment Services Generalist III Enclosure: (1) Job Titles with Salary Grades

(2) Salary Grades Chart for 07/01/2020 (3) Salary Grades Chart for 01/01/2021

Subject: Annual Update to Salary Grades and Position List

Each year, Foundation leadership reviews compensation policies and practices. An essential tool used in compensation administration is a current, relevant, and accurate salary scale. Management is recommending only mandated updates focused on the exempt ranges 11-13 due to the California minimum wage increase to $13.00 per hour on January 1, 2020 and the increase to $14.00 per hour on January 1, 2021. Both minimum wage increases affect the 2020/2021 budget cycle. California law requires the minimum exempt salary rate to be at twice the rate of minimum wage. Ranges 11-13 contain proposed adjustments to ensure compliance.

PROPOSED ACTION: The following resolution is recommended for approval:

WHEREAS, the Foundation management is requesting the Personnel Committee’s approval to forward the following resolution to the Board of Directors for their consideration:

RESOLVED, that the Board of Directors approves the Job Titles with Salary Grades list and both Salary Grades charts as illustrated in enclosures 1-3.

BE IT FURTHER RESOLVED that upon approval of this resolution by the Board of Directors, the Executive Director of the Cal Poly Pomona Foundation is authorized and directed to take any appropriate action necessary to implement this Resolution.

PASSED AND ADOPTED THIS 13th DAY OF MAY 2020.

Ms. Danielle Manning, Chair Personnel Committee

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p:gs/Salary Schedules/06a Salary Grades 07-01-2020 Monthly/Annual Range Based on Full Time Employment

Cal Poly Pomona Foundation, Inc. Salary Grades - Effective July 1, 2020

GRADE Bi-Weekly Period ANNUAL RANGE SPREAD GRADE # MIN MAX MIN MID MAX MIN MID MAX MIN MID MAX #

16 2,400 2,599 $4,786 $7,148 $9,510 $138,476 $192,868 $247,260 16

15 2,200 2,399 $3,683 $6,441 $9,199 $95,758 $167,471 $239,185 15

14 2,000 2,199 $3,120 $4,922 $6,724 $81,120 $127,976 $174,833 14

13 1,800 1,999 $2,231 $3,834 $5,437 $58,000 $99,679 $141,358 13

12 1,600 1,799 $2,154 $3,195 $4,236 $56,000 $83,073 $110,146 12

11 1,400 1,599 $2,080 $2,931 $3,783 $54,080 $76,213 $98,345 11

10 1,200 1,399 $22.71 $32.16 $41.61 $1,817 $2,573 $3,329 $47,237 $66,893 $86,549 10

9 1,100 1,199 $20.70 $29.17 $37.63 $1,656 $2,333 $3,010 $43,056 $60,663 $78,270 9

8 1,000 1,099 $19.89 $26.98 $34.06 $1,591 $2,158 $2,725 $41,371 $56,108 $70,845 8

7 900 999 $16.04 $23.61 $31.18 $1,283 $1,889 $2,494 $33,359 $49,107 $64,854 7

6 600 899 $15.00 $20.65 $26.29 $1,200 $1,652 $2,103 $31,200 $42,942 $54,683 6

Notes:

1. Grades 6, 7, 8, 9 and 10 are generally nonexempt positions.2. All full time positions (including the Executive Director and Chief Financial Officer positions), are subject to the merit pool limits for annual increases.

Variable Grade SpreadPOINT SPREAD HOURLY RANGE SPREAD

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p:gs/Salary Schedules/06b Salary Grades 01-01-2021 Monthly/Annual Range Based on Full Time Employment

Cal Poly Pomona Foundation, Inc. Salary Grades - Effective January 1, 2021

GRADE Bi-Weekly Period ANNUAL RANGE SPREAD GRADE # MIN MAX MIN MID MAX MIN MID MAX MIN MID MAX #

16 2,400 2,599 $4,786 $7,148 $9,510 $138,476 $192,868 $247,260 16

15 2,200 2,399 $3,683 $6,441 $9,199 $95,758 $167,471 $239,185 15

14 2,000 2,199 $3,120 $4,922 $6,724 $81,120 $127,976 $174,833 14

13 1,800 1,999 $2,385 $3,911 $5,437 $62,000 $101,679 $141,358 13

12 1,600 1,799 $2,308 $3,272 $4,236 $60,000 $85,073 $110,146 12

11 1,400 1,599 $2,427 $3,105 $3,783 $58,240 $78,293 $98,345 11

10 1,200 1,399 $22.71 $32.16 $41.61 $1,817 $2,573 $3,329 $47,237 $66,893 $86,549 10

9 1,100 1,199 $20.70 $29.17 $37.63 $1,656 $2,333 $3,010 $43,056 $60,663 $78,270 9

8 1,000 1,099 $19.89 $26.98 $34.06 $1,591 $2,158 $2,725 $41,371 $56,108 $70,845 8

7 900 999 $16.04 $23.61 $31.18 $1,283 $1,889 $2,494 $33,359 $49,107 $64,854 7

6 600 899 $15.00 $20.65 $26.29 $1,200 $1,652 $2,103 $31,200 $42,942 $54,683 6

Notes:

1. Grades 6, 7, 8, 9 and 10 are generally nonexempt positions.2. All full time positions (including the Executive Director and Chief Financial Officer positions), are subject to the merit pool limits for annual increases.

Variable Grade SpreadPOINT SPREAD HOURLY RANGE SPREAD

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SALARY GRADES with JOB TITLESEffective July 1, 2020

Salary Grade Minimum Maximum JobTitle Type Pay Frequency6 $15.00 $26.29 Account Specialist for AG Non-Exempt Hourly

Accounts Specialist I Non-Exempt HourlyAccounts Speciliast Non-Exempt HourlyAdminAsst Non-Exempt HourlyAssistant Project Coordinator I Non-Exempt HourlyBaker/Pastry Chef Non-Exempt HourlyBuyer Assistant Non-Exempt HourlyCIRM Program Administrator Non-Exempt HourlyCook Non-Exempt HourlyCook III Non-Exempt HourlyCook IV Non-Exempt HourlyDishroom Lead Non-Exempt HourlyDS-OPS-Supt Non-Exempt HourlyFacility Worker I Non-Exempt HourlyFacility_Worker_I Non-Exempt HourlyFacility_Worker_II Non-Exempt HourlyFarm Labor II Non-Exempt HourlyFood_Preparer Non-Exempt HourlyGeneral Office Support Non-Exempt HourlyHotel Worker Non-Exempt HourlyIT Office Coordinator Non-Exempt HourlyNursery Worker Non-Exempt HourlyOff Campus Cater Coordinator Non-Exempt HourlyOffice Assistant Non-Exempt HourlyOffice Support Non-Exempt HourlyOperations_Support Non-Exempt HourlyReceiving-Distribution_Clerk Non-Exempt HourlyShift Lead Non-Exempt HourlyShippingReceiving Asst Non-Exempt HourlyUV_MailClerk Non-Exempt Hourly

7 $16.04 $31.18 Academic Advisor Non-Exempt HourlyAccounts SpecialistII Non-Exempt HourlyAdmin Asst I - Director of Dining Non-Exempt HourlyAdminAsstI Non-Exempt HourlyAssistant Manager G7 Non-Exempt HourlyCatering Coordinator Non-Exempt HourlyCook V Non-Exempt HourlyDS Accounts Spec III Non-Exempt HourlyFacilities Worker III Non-Exempt HourlyFarm Lead Non-Exempt HourlyFloor Supervisor Non-Exempt HourlyFS_AcctTech7 Non-Exempt HourlyGeneral_Office_Supt Non-Exempt HourlyGrant_Specialist II Non-Exempt Hourly

Job Titles with Salary Grades - 07/01/20

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SALARY GRADES with JOB TITLESEffective July 1, 2020

Salary Grade Minimum Maximum JobTitle Type Pay FrequencyMarketing Coordinator I Non-Exempt HourlyNR_Gen_Admin_Coordinator Non-Exempt HourlyOutreach Assistant Non-Exempt HourlyStudent Coordinator Non-Exempt HourlySytem Coordinator Non-Exempt HourlyVault Cashier II Non-Exempt Hourly

8 $19.89 $34.06 Accounts Specialist III Non-Exempt HourlyAccounts Specialist Lead Non-Exempt HourlyArea Director Non-Exempt HourlyAsst. Manager Non-Exempt HourlyCommunity Development Specialist Gr8 Non-Exempt HourlyCourse Materials Coordinator Non-Exempt HourlyGeneral Maintenance Non-Exempt HourlyGrants Specialist III Non-Exempt HourlyMaintenance_Lead Non-Exempt HourlyMarketing Administrative Assistant Non-Exempt HourlyMerchandise Retail Buyer Non-Exempt HourlyPayroll Specialist I Non-Exempt HourlyResidental International Housing and Con Non-Exempt HourlySenior Academic Advisor Non-Exempt HourlyService Lab Coordinator Non-Exempt HourlySupervisor Non-Exempt HourlyTechnology Buyer Non-Exempt HourlyGeneral Admin Coord Exempt Biweekly

9 $20.70 $37.63 Admin Assistant II Non-Exempt HourlyAgriculture Laborer Lead Non-Exempt HourlyBB-GeneralMerchBuyer Non-Exempt HourlyDennys Manager Non-Exempt HourlyDS_Manager_NE Non-Exempt HourlyFinancial Systems Support Non-Exempt HourlyFranchise Mgr Non-Exempt HourlyKitchen_Supervisor Non-Exempt HourlyMarketing Coordinator II Non-Exempt HourlySenior Program Coordinator Non-Exempt HourlyStarbucks Manager Non-Exempt HourlyHR Generalist I Exempt Biweekly

10 $22.71 $41.61 Administrative Assistant III Non-Exempt HourlyAssistant Manager Non-Exempt HourlyHVAC Technician Non-Exempt HourlyMulti Unit Manager Non-Exempt HourlyRetail Manager Non-Exempt HourlyBrewery Cafe Manager Non-Exempt HourlyUV_AsstDirRe_NE Exempt Biweekly

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SALARY GRADES with JOB TITLESEffective July 1, 2020

Salary Grade Minimum Maximum JobTitle Type Pay FrequencyFin_Sys_Accountant Exempt BiweeklyNR_ProjectCoordinator Exempt BiweeklyProgram Coordinator Exempt BiweeklyPurchasing Manager Exempt BiweeklyResearch Associate Exempt BiweeklyRetail Manager Exempt BiweeklyManager Exempt BiweeklyOperations Manager Exempt BiweeklyConference Sales Mgr Exempt BiweeklyOperations Manager Exempt BiweeklyAsstDirLeadershipDev Exempt BiweeklyCoordinator Exempt BiweeklySales Generator Exempt BiweeklyUB_Program Advisor Exempt BiweeklyDigital Content Strategist Exempt BiweeklyLearning-Reading Specialist-Advisor Exempt BiweeklyKellogg House Coordinator_Sr. Exempt BiweeklyLearning-Reading Specialist-Advisor Exempt BiweeklyProgram Coordinator Exempt BiweeklyRetail Manager Exempt BiweeklyUB_Program Advisor Exempt BiweeklyLearning-Reading Specialist-Advisor Exempt BiweeklyOperations Manager Exempt Biweekly

11 $2,080.00 $3,783.00 Marketing and Branding Dev Exempt BiweeklyProperty Manager Exempt BiweeklyTehnology Manager Exempt BiweeklyProgram_Admin Exempt BiweeklyHR Generalist II Exempt Biweekly

12 $2,154.00 $4,236.00 Staff / Research Scientist Exempt BiweeklyGeneral Business Manager Exempt BiweeklyHR Generalist III Exempt BiweeklyDirector-Talent Search Exempt BiweeklyAssistant Director Exempt BiweeklyAssistant Director Exempt BiweeklyChef Exempt BiweeklyGeneral Business Manager Exempt BiweeklySystems_Analyst Exempt BiweeklyGeneral Business Manager Exempt BiweeklyBusiness Manager Exempt BiweeklySystems_Analyst Exempt BiweeklyAssistant Director Exempt BiweeklyProgram Director_Engineering Exempt BiweeklyExecutive Assistant Exempt BiweeklySystems_Analyst Exempt Biweekly

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SALARY GRADES with JOB TITLESEffective July 1, 2020

Salary Grade Minimum Maximum JobTitle Type Pay FrequencyExecutive Chef Exempt BiweeklyPayroll Manager Exempt Biweekly

13 $2,231.00 $5,437.00 Senior Assistant Director Exempt BiweeklyJr-Dir for Grants Exempt BiweeklyDirector_UB Programs Exempt BiweeklyProject Director Exempt BiweeklyAssociate Director Exempt BiweeklyBusiness Manager Exempt Biweekly

14 $3,120.00 $6,724.00 Director Exempt Biweekly

15 $3,683.00 $9,199.00 Senior_Director Exempt Biweekly

16 $4,786.00 $9,510.00 Executive Director Exempt Biweekly

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Memorandum Date: May 1, 2020 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Nora Fernandez – Senior Human Resources Generalist III

Diane Maldonado – Payroll Manager Subject: Annual Employee Performance Review Update Each year Foundation reviews all benefitted employees and this year our annual performance review began on Monday, March 30, 2020 and ends on May 31, 2020. The respective Foundation reporting managers received a performance review notification from the HRIS KRONOS system to prepare the 2020 Annual Performance Reviews for the employees that report to them. When the employee’s annual performance review is completed, the manager’s manager will either approve or reject the performance review. Upon approval by the manager’s manager, the employee and manager will discuss the employee’s performance review. Once reviewed, the employee will either accept or reject the performance review and this will end the annual performance review cycle, a complete paperless system within HRIS KRONOS.

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