11—53.7 (8A) Within grade increases.
	 53.7(1) General. An employee may receive a periodic step or percentage increase in base pay that is within the pay grade and pay plan of the class to which assigned upon completion of a minimum pay increase eligibility period.
	  a.   	 Pay increase eligibility periods. The minimum pay increase eligibility period for employees paid from pay plans without steps shall be 52 weeks, except that it shall be 26 weeks for new hires and employees who receive an increase in base pay as a result of a promotion, reclassification or pay grade change. Minimum pay increase eligibility periods for employees paid from pay plans with steps shall be the number of weeks in the pay plan that corresponds to the employee’s step.
	  b.   	 Noncreditable periods. Except for required educational and military leave, periods of leave without pay exceeding 30 calendar days shall not count toward an employee’s pay increase eligibility period.
	  c.   	 Reduction of time periods. The director may authorize a reduction in pay increase eligibility periods for classes where there are unusual recruitment and retention circumstances.
	 53.7(2) Noncontract classes. An employee in a noncontract class may be given any amount of within grade pay increase up to the maximum pay rate for the employee’s class. The pay increase shall be at the beginning of the pay period following completion of the employee’s prescribed minimum pay increase eligibility period and shall not be retroactive, except as provided for in subrule 53.4(7).
	  a.   	 Performance. Within grade pay increases shall be based on performance, are not automatic, and may be delayed beyond completion of the employee’s minimum pay increase eligibility period. To be eligible, a within grade pay increase must be accompanied by a current performance evaluation on which the employee received a rating of at least “meets job expectations.” Time spent on required educational or military leave shall be considered to “meet job expectations.”
	  b.   	 Lump sum. When budgetary conditions make it infeasible to grant within grade pay increases, an appointing authority may instead grant a lump sum increase. The increase shall not be added to the employee’s base pay and shall be allowed only once in a fiscal year. Lump sum pay increases must be requested in writing from the director.
	 53.7(3) Contract classes. Within grade pay increases for employees in contract classes shall be in accordance with the terms of their collective bargaining agreement.
	 53.7(4) Certified teachers. Within grade pay increases for employees who are required to possess a current valid teaching certificate with appropriate endorsements and approvals by the Iowa department of education shall be based on length of service, performance and credentials.
	 53.7(5) Eligibility dates. An employee’s pay increase eligibility date shall be set at the time of hire, and if the employee starts on the first working day of the pay period, it shall be the first day of the pay period following completion of the employee’s minimum pay increase eligibility period. Otherwise, it shall be the first day of the pay period following the date the employee starts work.
	  a.   	 General. A new eligibility date shall be set when an employee receives an increase in base pay, except when transferring in the same pay grade to a different pay plan. The following pay increase eligibility periods shall be used to set these dates.
	 (1) 	 Fifty-two weeks for employees paid from pay plans without steps, except that for new hires and employees who receive a pay increase as a result of a promotion, reclassification or pay grade change it shall be 26 weeks.
	 (2) 	 For employees paid from pay plans with steps, it shall be the number of weeks in the pay plan that corresponds to the employee’s pay step after the pay increase.
	  b.   	 Bumping. An employee who is recalled to a class from which the employee was bumped shall have a new eligibility date set if the pay increase eligibility period of the class to which recalled is less than the employee’s current pay increase eligibility period.
	  c.   	 No adjustment for educational or military leave. An employee who returns to work from required educational or military leave shall have the employee’s eligibility date restored without adjusting for the period of absence.
	  d.   	 Adjustments for returning from leave or recall. An employee who returns to work from a recall list or from an authorized leave of absence shall have the employee’s eligibility date restored, but adjusted for the period of absence that exceeds 30 calendar days.
	  e.   	 Prior service credit. If a transfer or demotion results in an employee’s having a longer pay increase eligibility period, credit shall be given for the time served toward completion of the employee’s new pay increase eligibility period.
	  f.   	 Administrative changes. The director may change eligibility dates when economic or other pay adjustments are made to the classification plan or pay plans.
	 53.7(6) Suspension. If within grade pay increases are suspended by an Act of the general assembly, the rules that provide for such increases shall also be suspended.