Common use of Base Pay and Merit Increases Clause in Contracts

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. A three percent (3%) percentage base increase (PBI) will be effective the pay period including April 24, 2017; a three percent (3%) PBI will be effective the pay period including April 24, 2018; and a three percent (3%) PBI will be effective the pay period including April 24, 2019. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those employees who have entered the bargaining unit after the effective date of any PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unit. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(s) for such denial in writing. (H) Any merit increase will be retroactive to the first day of the first pay period following the employee’s classification seniority date.

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CMAGE/CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. B. (1) A two percent (2%) percentage base increase (PBI) will be effective at the beginning of the pay period which includes August 23, 2005. A three percent (3%) percentage base increase (PBI) will be effective at the beginning of the pay period including April 24which includes August 23, 2017; a three 2006. A four percent (34%) PBI percentage base increase (PBI) will be effective at the beginning of the pay period including April 24which includes August 23, 2018; and a three 2007. (2) The parties agree that the pay structure will increase one percent (31%) less than the annual PBI will to ensure overall competitiveness. Factors necessary to be effective the considered include, but are not be limited to: (a) Economic indicators, i.e., inflation, cost of labor, etc. (b) Impact to Pay Plan, i.e., compression with other City pay period including April 24plans, 2019impact to employees at pay grade minimum and maximum. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any The retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance passage of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those Those employees who have entered entering the bargaining unit after the effective date of any the PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unitunit if an employee’s pay rate falls below the new minimum for his/her assigned pay grade. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually once every two years (beginning in 1998) based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(sreasons(s) for such denial in writing. (H) Any For those employees whose classification seniority date falls on or after January 1, 2006, a merit increase will must be retroactive to given no later than the first day of the first pay period following the 90th day after the employee’s classification seniority date. Any merit increase processed after that date will be retroactive to said date.

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. A three percent (3%) percentage base increase (PBI) will be effective the pay period including April 2427, 20172014; a three percent (3%) PBI will be effective the pay period including April 2426, 20182015; and a three percent (3%) PBI will be effective the pay period including April 24, 20192016. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance passage of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those Those employees who have entered entering the bargaining unit after the effective date of any PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unitunit if an employee’s pay rate falls below the new minimum for his/her assigned pay grade. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(s) for such denial in writing. (H) A merit increase must be given no later than the first day of the first pay period following the 90th day after the employee’s classification seniority date. Any merit increase processed after that date will be retroactive to said date. Effective January 1, 2015, any merit increase will be retroactive to the first day of the first pay period following the employee’s classification seniority date.

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. A two and one-half three percent (32.53%) percentage base increase (PBI) will be effective the pay period including April 24, 2017202117; a three percent (3%) PBI will be effective the pay period including April 24, 2018202218; and a three percent (3%) PBI will be effective the pay period including April 24, 2019. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those employees who have entered the bargaining unit after the effective date of any PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unit. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(s) for such denial in writing. (H) Any merit increase will be retroactive to the first day of the first pay period following the employee’s classification seniority date.

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. A three two and one-half percent (32.5%) percentage base increase (PBI) will be effective the pay period including April 24, 20172021; a three percent (3%) PBI will be effective the pay period including April 24, 2018; and a three percent (3%) PBI will be effective the pay period including April 24, 20192022. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those employees who have entered the bargaining unit after the effective date of any PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unit. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(s) for such denial in writing. (H) Any merit increase will be retroactive to the first day of the first pay period following the employee’s classification seniority date.

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CMAGE/CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. B. (1) A three two percent (32%) percentage base increase (PBI) will be effective beginning the pay period including that includes April 24, 20172011; a three two percent (32%) PBI will be effective beginning the pay period including that includes April 24, 20182012; and a three two and three-quarters percent (32.75%) PBI will be effective beginning the pay period including that includes April 24, 20192013. (2) The parties agree that the pay structure will increase one percent (1%) less than any annual PBI to ensure overall competitiveness. Factors necessary to be considered include, but are not be limited to: (a) Economic indicators, i.e., inflation, cost of labor, etc. (b) Impact to Pay Plan, i.e., compression with other City pay plans, impact to employees at pay grade minimum and maximum. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance passage of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those Those employees who have entered entering the bargaining unit after the effective date of any PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unitunit if an employee’s pay rate falls below the new minimum for his/her assigned pay grade. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually once every two years (beginning in 1998) based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(sreasons(s) for such denial in writing. Effective January 1, 2012, employees will be considered for annual merit reviews based on their classification seniority date. (H) Any A merit increase will must be retroactive to given no later than the first day of the first pay period following the 90th day after the employee’s classification seniority date. Any merit increase processed after that date will be retroactive to said date.

Base Pay and Merit Increases. (A) As the result of a labor/management partnership, the parties developed a new pay plan effective December 5, 2004. The CMAGE/CWA pay plan is based on the pay structure and classification assignments to pay grades as set forth in Appendices A and B. B. (1) A three one percent (31%) percentage base increase (PBI) will be effective on August 24, 2008, which will be deferred to the beginning of the pay period including April 24which includes January 1, 20172010; a three two and one-half percent (32.5%) PBI will be effective beginning the first pay period including April 24that includes January 1, 20182010; and a three two and one-half percent (32.5%) PBI will be effective beginning the first pay period that includes January 1, 2011. (2) The parties agree that the pay structure will increase one percent (1%) less than any annual PBI to ensure overall competitiveness. Factors necessary to be considered include, but are not be limited to: (a) Economic indicators, i.e., inflation, cost of labor, etc. (b) Impact to Pay Plan, i.e., compression with other City pay plans, impact to employees at pay grade minimum and maximum. However, the parties agree that the pay structure will increase one percent (1%) on a one-time basis effective August 24, 2008. Any member whose pay rate falls below the new minimum rate will retain that rate until the pay period including April 24January 1, 20192010. At that point, those members must receive increase amounts that are, at minimum, equal to the new pay grade minimums. (B) Step X is a compensation mechanism used to accommodate a specific set of circumstances in which an employee’s pay rate may exceed the pay grade maximum for his/her classification. It authorizes the employee’s current base pay rate to be continued when it exceeds the maximum of the pay grade until the point in time that the pay grade increases enough to include the employee’s base pay rate. Those circumstances may include: (1) The pay grade assignment for a classification is changed as a result of market analysis conducted by the Department of Human Resources, and in negotiation with the Union, and the employee’s pay rate exceeds the new pay grade maximum; or (2) Any Civil Service Commission action which creates a reallocation to different classifications that results in the incumbent(s)’ current pay rate(s) exceeding the new pay grade maximum. (3) While in Step X, the employee continues to be eligible for PBIs and merit increases consistent with 17.1(G) as provided by this Agreement, but the increase must be in the form of a lump sum payment as provided for in Section 17.1(C)(3), and may not be added to the base pay. (C) Under no circumstances may an employee's base pay be adjusted above the pay grade maximum, nor below the pay grade minimum, in the employee's pay grade as set forth in Appendix A. (1) Employees who are currently in Step X will continue to be eligible for PBIs and merit increases in the form of a lump sum payment and may not be added to the base pay. (2) Employees who are at or near pay grade maximum are eligible for PBIs and merit increases, but their base increases will be limited to the amount that moves their pay to pay grade maximum. The remainder of the percentage increase will be paid in the form of a lump sum payment as provided in (3) below. (3) The above-referenced lump sum payments will be calculated as follows: Such lump sum payment will be based on the employee’s hourly rate multiplied by 2,080 hours (1,040 hours for part-time employees), plus any overtime hours worked in the previous 26 pay periods, valued at time and one-half (1.5), multiplied by the remaining PBI or merit increase. (D) Retroactive pay adjustments, for any PBIs referenced in Section 17.1(A), shall be limited to straight-time (any time paid by the City, i.e., vacation, sick, injury, holiday, compensatory time, approved union release, and time worked out-of-class); overtime; and reciprocity hours only. Any retroactive pay increase shall be limited to those employees in the bargaining unit as of the effective date of the PBI who continue to be employed by the City upon acceptance passage of this Agreement by City Council. Effective with the acceptance of this Agreement by City Council, those Those employees who have entered entering the bargaining unit after the effective date of any PBI and the pay period in which any initial retroactive adjustments are paid shall be eligible for retroactive pay from the date that the employee entered the bargaining unitunit if an employee’s pay rate falls below the new minimum for his/her assigned pay grade. (E) The Appointing Authority will designate the rate within the pay grade at which a newly hired employee shall be paid, consistent with Appendices A and B. (F) The pay grades and hourly rates of pay as well as any annual salaries established in Appendix A shall be based upon a forty (40) hour workweek. Nothing in this Agreement, however, shall be construed as a guarantee of hours of work per shift, per day, per week or any other period. (G) The City will continue the merit pay review system for bargaining unit employees. Each employee shall be evaluated annually once every two years (beginning in 1998) based on the employee's classification seniority date. If an employee is denied a merit pay increase, the employee shall be provided the reason(sreasons(s) for such denial in writing. (H) Any A merit increase will must be retroactive to given no later than the first day of the first pay period following the 90th day after the employee’s classification seniority date. Any merit increase processed after that date will be retroactive to said date.