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Penn State Health announces salary increases, incentive payment despite challenging past fiscal year

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COVID-19 has had a significant financial impact on Penn State Health, yet despite the challenges, the organization experienced a successful year—thanks to the dedication and teamwork of its exceptional workforce.

“As I’ve reflected on this last year, I’ve had the tendency to reflect on the challenging times we’ve had…” said Steve Massini, CEO of Penn State Health. “However I’ve also found myself increasingly focused on all the amazing, positive things that you as individuals and teams have done to face the many challenges that have presented themselves to us.”

The Penn State Health Board of Directors voted unanimously last week to approve the leadership team’s recommendations about salary increases and a bonus payment for eligible Penn State Health employees.

Check out the video message from Steve Massini.

General information about the compensation plans are below. Penn State Health leaders have additional detail available to answer any questions employees may have, and documents regarding eligibility criteria are available in mySolutions.

  • Non-bargained Penn State Health staff will receive across-the-board salary increases with the following stipulations:
    • 2% base-affecting increases (up to position pay range maximum) for eligible employees whose annualized base pay is less than $100,000.
    • 1% base-affecting increases (up to position pay range maximum) for eligible employees (including Academic Practice physicians) whose annualized base pay is $100,000 or more.
      • Both increases are subject to position pay range maximum. Lump sum payments will be provided for these scenarios.
    • Performance review of “successful” (2.51 score) is required to receive an increase.
    • With a few exceptions, executives will receive no annual pay increases and will not receive performance bonuses this year.
    • These increases will take effect on Jan. 3, 2021, and Academic Practice physicians on Jan. 1, 2021.
  • In recognition of their efforts throughout the pandemic, Penn State Health will provide its employees with an additional one-time, “We Are… Better Together” bonus payment.
    • Payment will be equal to 1.5% of a Penn State Health employee eligible earnings from FY 2020 or $750.00, whichever is higher.
    • Will be distributed in an off-cycle pay on Oct. 9.
    • Must have worked 80 hours in FY20 and be hired prior to 7/1/20 to receive this payment.
    • Executives, physicians, interns, contract, temporary, students and any employee receiving a FY20 clinical incentive will not receive this bonus payment.

Consistent with University and College of Medicine announcements in July following Board of Trustees meetings, College of Medicine employees will not receive a salary increase or bonus payment this year. Click here to read Interim Dean Dr. Kevin Black’s message to College of Medicine employees from earlier today.

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