Update: Changes to Pay for Performance (P4P) Payouts

TSEA August 26, 2025 Comments Off on Update: Changes to Pay for Performance (P4P) Payouts

As you may know, the Department of Human Resources (DOHR) recently announced changes beginning this year to how Pay for Performance (P4P) salary increases and bonuses are administered for TEAM-Act employees. Non-TEAM Act employees are not affected.

What’s Changing

Starting this year, the P4P payout will shift to an agency-specific approach, meaning each agency will manage its portion of the salary pool and set the values tied to performance ratings. As a result, base salary increase percentages may differ by agency. The Department of Human Resources determined the bonus percentages.

Important Dates:

This week (Week of August 25) – Expect to receive your agency’s P4P announcement.
September 1 – P4P base salary increase values will take effect in Edison.
September 30 – P4P one-time bonuses and base salary increases will be paid.

Legislative Funding

As a reminder, for Fiscal Year 2025, the Tennessee General Assembly approved a 2.6% salary pool for P4P raises and bonuses. How those dollars are distributed will vary depending on each agency’s implementation.

What Members Should Know

We know that P4P payouts will not be consistent across agencies under this new approach. Our concern is how much variance there will be, how clearly the program will be applied, and whether the 2.6% salary pool approved by lawmakers will be distributed as intended.

To that end, TSEA is attempting to build a complete list of P4P payout levels by agency. If you receive communication from your department with raise amounts, please share it with us at [email protected]. This will help us track differences, ensure transparency, and better advocate on your behalf.

Policy Reference

For details about how the P4P program is administered, please review the Performance Management Procedures and Processing Policy.

Next Steps

TSEA will continue gathering information and member feedback on this change. By the end of the week, we should be able to share with the membership the agency payout information received by that time. As always, we remain committed to supporting our members and ensuring your concerns are heard.

If you have additional concerns you’d like to share, you can also email us at the email address listed above.

Thank you for being a member of TSEA!

TSEA