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-3- <br /> In this area there are currently four public employers <br /> with a proposed cost-of-living increase. These are: <br /> Carrboro - 3 .5 percent effective 7-1-91 <br /> Cary - 3 percent effective 1-1-92 <br /> OWASA - 2 percent effective 7-1-91 and beginning a 2 <br /> percent 401 (k) plan contribution effective 1-1-92 <br /> Hillsborough - 5 percent effective 7-1-91 <br /> The City of Durham is not proposing a cost-of-living <br /> increase but is proposing to increase its 401 (k) plan <br /> contribution for employees from 4 percent to 5 percent <br /> effective January 1 . [The 401 (k) plan is a supplemental <br /> retirement plan. ] <br /> 4 . Merit Increases <br /> The second pay element in the Manager' s Recommended <br /> Budget is continuation of funding for the merit pay <br /> program. Attachment 6 summarizes the key purposes that a <br /> merit pay program serves . <br /> Effective January 1, 1990 the County implemented the Work <br /> Planning and Performance Review program (called WPPR) . <br /> Under WPPR, award of any merit increase is directly tied <br /> to the employee' s accomplishment of agreed-on performance <br /> objectives . <br /> The first year of WPPR has been a transition period from <br /> the previous performance evaluation system. The first <br /> year focused on the development of WPPR work plans . <br /> Performance reviews under these work plans began <br /> in 1991 . <br /> Under the Orange County merit pay plan, there are three <br /> levels of merit increase that may be awarded (excluding <br /> zero) : a minimum of 2 . 5 percent, 5 percent, and a maximum <br /> for Outstanding Achievement of 5 percent plus a 2 .5 <br /> percent lump sum bonus . <br />