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(a)
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(1) The Division of Higher Education may develop and establish a merit increase pay system for employees of all institutions of higher education covered by this subchapter.
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(2)
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(A) Employees are eligible for a merit increase to be paid as an increase in salary or a lump sum on the employee’s merit increase date, and the payment shall not be construed as exceeding the maximum pay level for the grade.
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(B) The lump-sum payments authorized in this section shall be considered as salary for the purposes of retirement eligibility.
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(3) The merit increase pay system shall be reviewed by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
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(b) As used in this section, “merit increase pay system” means a merit-based pay system that incorporates pay and performance evaluation standards and establishes criteria for payments for employees who meet requisite performance categories.
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(c) Merit payments may be awarded to employees who satisfy performance evaluation-based criteria developed by institutions in accordance with procedures and policies developed and approved by the division after review by the Legislative Council.
