Academic Affairs and Personnel

The Negotiated Salary Program (NSP) is a flexible compensation program that allows Senate faculty on the general campus to voluntarily utilize external funding sources to augment their salaries on a temporary basis. Like the Health Sciences Compensation Plan, the NSP provides incentives to generate non-state funding and rewards academic achievements or efforts consistent with the competitive requirements of academic disciplines.

All schools and divisions that do not currently offer the Health Sciences Compensation Plan will have access to the NSP, and all Senate faculty affiliated with those schools or divisions may apply to participate in the NSP when appropriate external funding is available and good standing requirements are met.

The following procedures govern the implementation of the NSP at UCLA. The procedural requirements are based on the policy framework set forth in the Academic Personnel Manual, Section 672 (APM - 672), and are designed to assure fulfillment of the intended purposes of the program.

I. Eligibility

The NSP is available to all Senate faculty members on the general campus who meet the Good Standing criteria set forth in Section II of this document while holding a University appointment at or greater than 50 percent time in any of following title series:

• Professor
• Professor In Residence
• Professor of Clinical  (e.g., Optometry)
• Professor of Teaching
• Acting appointees in one of the above eligible title series

The following faculty are ineligible to participate in the NSP:

• Faculty members appointed in a Health Sciences school or department and eligible to participate in the Health Sciences Compensation Plan
• Individuals in the Senior Management Group (SMG)
• Full-time deans as defined by APM-240
• Full-time faculty administrators as defined by APM-246

Faculty who hold part-time faculty administrative appointments may participate in the NSP on a pro- rated basis that corresponds with the percentage of appointment in an eligible faculty title, providing participation would not disrupt the required balance between duties.

II. Good Standing Criteria

A. Faculty participating in the NSP must be in Good Standing according to the following criteria:

1. Advancement in rank or step in the last academic personnel review, or equivalent satisfactory review;
2. Fulfillment of the approved teaching load;
3. Fulfillment of research support responsibilities, including current and incoming students, tuition and benefits, and graduate student employment;
4. Fulfillment of University service commensurate with rank and step;
5. Up to date on mandatory training requirements;
6. Compliance with all applicable University policies, procedures, and reporting requirements;
7. No substantiated finding of misconduct as defined by Section 015 of the Academic Personnel Manual (APM - 015) or proposed/imposed discipline in the period since the faculty member was last determined to be in Good Standing;
8. No disciplinary sanction imposed by a formal disciplinary process or an informal agreement with the University of California in lieu of formal disciplinary action. A disciplinary action, as permitted by APM - 016, is cause for cancelling current and/or denying future participation in the NSP. As a measure agreed to via an Early Resolution in lieu of formal discipline as defined in and encouraged by Senate Bylaw 336, a faculty member can agree that they are ineligible to participate in the NSP for a defined period of time.
9. If a faculty member is deemed to be out of Good Standing and wishes to appeal that determination, the administrative review process set forth in Section VII of this document applies.

III. Compensation Components

A. Base Salary. The Base Salary is an individual’s regular scale-based salary rate (academic or fiscal), including on-scale, off-scale, and/or above scale. The Base Salary is considered covered compensation under the University of California Retirement Program (UCRP) up to the amount permissible by Internal Revenue Service Code provisions and in accordance with UCRP provisions and regulations.

B. Negotiated Salary Component. The Negotiated Salary Component is an optional, non-base- building component beyond the Base Salary that is in effect on July 1 of the proposed year of participation. The Negotiated Salary Component has a cap of 30% of the Base Salary and is not considered covered compensation under the UCRP.

C. Total UC Salary (TUCS). The Total UC Salary refers to the combined sum of a participant’s Base Salary and a Negotiated Salary Component that is in effect July 1 through June 30. Negotiations are conducted annually to determine the TUCS rate for the proposed year of participation. Once the TUCS has been implemented, it may not be changed for any reason. If a participant’s Base Salary is raised due to a merit increase, a promotion increase, an off-scale increase or a general range adjustment, the Negotiated Salary Component will be adjusted downward while the Base Salary goes up so that the TUCS rate remains unchanged for the fiscal year. The TUCS constitutes the “Institutional Base Salary” used in determining the amount of faculty salary costs that can be charged to federal awards for work performed under those awards.

D. Summer Salary. Faculty on academic year appointments remain eligible for three-ninths additional summer compensation for research, teaching, and/or administrative service, and must maximize summer ninth opportunities before utilizing the NSP.

1.  Summer salary from all sources may not exceed three ninths for academic-year appointees (see APM - 600).
2. Summer ninths shall be paid at the TUCS Rate, subject to fund-source limits. Any portion of a ninth paid for service in June shall be based upon the individual’s salary in effect on June 30.
3. Summer salaries come from both internal and external fund sources, and are not considered covered compensation under the UCRP, although a special Defined Contribution benefit applies.
4. All applicable federal policies apply, including, for example, limits on summer salaries that may be charged to grants, agency salary limitations, and prohibitions on the use of state funds to pay an individual’s salary in excess of the NIH salary cap.
5. Participants may request an exception to the maximum summer ninths requirements under unusual circumstances such as taking personal time off during their off-duty period in the summer. The exception request must be made in writing and should explain the reason that necessitates the exception not to take the maximum summer salary. The request must be signed by the faculty member, endorsed by the Chair and the Dean, and approved by the VCAAP.

E. Administrative Stipend. Participants may receive administrative stipends in accordance with established campus procedures; however, stipends issued for official administrative roles may not be included in the Negotiated Salary Component and must be recorded as separate payments.

IV. Allowable Funding

Allowable funding is any external funding source that the faculty member has access to due to their research, teaching, or outreach activities. External funding refers to any fund sources that are not state appropriations, UC general funds or tuitions paid by students in state-supported projects.

A. The following external funding sources may be used to support the NSP:

• Contract and grant support
• Endowment income
• Gift income
• Professional degree fees
• Self-supporting degree fees
• Royalties
• Licensing fees
• Summer session revenue

B. External funding sources in support of the NSP are subject to further limitations, as listed below:

1. Funding must be secured by June 30 of the year prior to implementation of the Negotiated Salary Component.
2. Funding awarded after the salary increment for the proposed year has been negotiated will be eligible for negotiation for the following fiscal year.
3. Funding must be derived from a stable source, paid in accordance with any related fund source restrictions, and sufficient to cover associated participation costs for the entire year of the proposal.
4. General funds cannot be substituted for external funds in support of the program and cannot be set aside for contingency purposes.
5. All charges to contracts and grants must be compliant with Office of Management and Budget (OMB) Circular A-21. Effort for salaries charged to sponsored projects funded by federal sources must be accurately and appropriately calculated and certified. At no time may effort exceed 100%.
6. When federal projects are involved, the program must be compliant with Federal Uniform Guidance regulations at 2 CFR 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.”

C. Discretionary funds associated with the department, school, division, or campus that are fungible for other purposes cannot be substituted for external funds in support of the NSP because these funds are not generated by participating faculty members.

D. Use of funds other than approved external funding sources constitutes misuse of funds. Any such misuse of funds will result in involuntary withdrawal from the NSP and may lead to disciplinary sanction(s) after an appropriate review.

V. Participation Effective Dates

A. The first effective date of the NSP will be July 1, 2025

B. The TUCS will be effective for one full year, corresponding with the University fiscal cycle of July 1 – June 30.

C. Newly hired faculty with mid-year start dates may participate from the appointment begin date through June 30.

D. Salary increases negotiated as a part of a formal retention offer will be effective on July 1 of the following year.

E. Retroactive participation is not permitted.

F. Renewals are not automatic. Continuing participation in the program must be renegotiated, evaluated by the Chair and the Dean, and approved by the VCAAP each year.

G. Early withdrawal from the program is allowed only upon separation or retirement from the University, as a result of a determination that a participant has fallen out of Good Standing, as a result of an official disciplinary action (as described in APM - 015,APM - 016, and SenateBylaw 230), misuse of funds, due to an increase in Base Salary that subsumes the Negotiated Salary Component, or upon appointment to an ineligible administrative appointment.

H. The Executive Vice Chancellor and Provost (EVCP) may suspend the NSP for any school, division, or department on June 30 of any fiscal year.

VI. Proposal Submission and Review Process

No later than March of each year, the Vice Chancellor for Academic Affairs and Personnel (VCAAP) will issue a call to all schools and divisions on the general campus regarding the annual negotiation for the coming fiscal year. The call will specify submission timelines and include a copy of the campus Implementation Procedures and any other related documents.

The proposal submission and review process is as follows:

A. Proposal Submission

Interested and eligible faculty members shall develop their NSP proposals for the following fiscal year using a campus-designated Compensation Request Form.

Proposals must include funding obligations for the Negotiated Salary Component and associated costs, approved course loads, graduate student support level, a contingency plan in the event of a funding shortfall, and evidence of contributions to diversity and inclusive excellence, if such evidence is available.

Prior to submission of the proposal, each faculty member should meet with the appropriate Fund Manager to ensure that the total dollar amount requested is within the 30 percent limit set forth by the campus Implementation Procedures, and the funding sources are allowable and available for the entire year of participation.

After funding has been verified by the Fund Manager, the faculty member should submit the proposal form to the Department Chair.

B. Proposal Review

The Department Chair will review the proposal to ensure that:

• The faculty member meets all Good Standing criteria set forth in Section II of this document.
• The TUCS amount requested is within the norms of the department and is consistent with the campus procedural requirements.
• Allowable and appropriate resources are available to support the proposal.
• The faculty member is compliant with all applicable University policies, procedures, and training requirements.
• There is no proposed or imposed official disciplinary action.

If the Chair recommends a faculty member’s proposal, the Chair will forward the endorsed proposal to the Dean. The Dean will review the proposal and forward the endorsed proposal to the VCAAP by the established deadline.

The VCAAP will review and inform the Dean of the approved proposal within 30 days of receipt of the proposal.

C. Salary Confirmation

If the VCAAP approves the proposal, the Dean reports approval to the Chair, and the Chair will send a salary confirmation letter to the faculty member and the Department Business Officer confirming the faculty member’s TUCS rate plus any additional compensation for the coming fiscal year.

D. Documentation

Approved proposals will be documented in writing and signed by the faculty member, the appropriate Fund Manager, the Chair, the Dean, and the VCAAP.

VII. Appeal Process

If the Chair does not recommend a faculty member’s proposal, the Chair should meet with the faculty member to see if a mutually agreeable solution can be reached. Any modification should be documented and the proposal forwarded as outlined above.

If the Chair does not endorse a faculty member’s proposal because the faculty member does not have eligible or sufficient funding, the Chair will inform the Dean and the Dean will review. If the Dean concurs with the Chair, the Dean will communicate the finding to the faculty member.

If the Chair does not endorse a proposal because the faculty member does not meet the Good Standing criteria set forth in Section II of this document, the following process shall be followed:

A. If there is a determination of loss of Good Standing by the Chair and the faculty member disagrees with the determination, the Chair will inform the Dean and the Dean will review. If the Dean concurs with the Chair, the Dean will forward the faculty member's proposal along with the Chair’s assessment and the Dean’s assessment to the VCAAP.

B. Upon receipt of the appeal package, the VCAAP will appoint an ad hoc NSP Joint Faculty/Administrative Committee (FAC) comprised of 2-3 faculty members and 2-3 administrators. The FAC will review the appeal and provide a recommendation to the VCAAP within 14 days of receipt of the appeal. The VCAAP will make a final decision and inform the Dean of the outcome of the decision within 7 days of receipt of the FAC recommendation.

VIII. Contingency Plan

Every participating faculty member is required to develop a Contingency Plan to provide alternative funding sources necessary to cover the agreed upon compensation in the event of a funding shortfall. The alternative funds must be available for use during the entire year of participation. No general funds or student tuition funds can be used to address contingencies.

If a participant loses funding during the year of participation and the funds that support the Contingency Plan are insufficient and the department needs to use other non-state accounts to stop the loss, the participant would not be permitted to participate in the program in subsequent years.

The Dean is responsible for managing funding of the NSP. Where appropriate, the Dean may apply more restrictive requirements to the Contingency Plan or choose to establish a contingency reserve fund to ensure coverage of TUCS obligations.

A. Where applicable, the contingency fund will be built through the contribution by each participating faculty member of any eligible fund sources at a designated percentage rate of the Negotiated Salary Component.

B. Where applicable, the contingency fund account minimum balance will be set by the Dean or Dean’s Designee. If accumulations fall below the minimum level, an increase in contribution rates will be required to bring the balance to the required level.

C. Where applicable, use of any contingency fund surplus will be discussed with the departmental leadership and approved by the Dean and the EVCP.

D. Where applicable, contingency fund accumulations and expenditures shall be reported annually to the EVCP, including the consultation that occurred regarding the use of any contingency fund surplus.

IX. Leaves of Absence

Sabbatical leave and other leaves with pay may be taken by NSP participants in accordance with established campus policies.

A. Paid leaves will be granted at the TUCS rate through June 30 of the year of the leave (see APM – 715).

B. State funds may be used only for the portion of the paid leave related to a faculty member’s Base Salary.

C. If external fund restrictions preclude payment of medical/sick leave, the funding shortfall will be resolved through implementation of the Contingency Plan.

D. The campus is under no obligation to continue the Negotiated Salary Component if a medical/sick leave continues into the next salary negotiation cycle (7/1 to 6/30).

X. Intercampus Transfers

A. Temporary intercampus appointments, including Faculty Consultant payments, will be based on the TUCS rate in effect during the temporary appointment. The negotiated salary increment may not be paid through state funds.

B. If a faculty member transfers from one UC campus to UCLA, the faculty member must negotiate a new proposal according to the procedures governing the NSP at UCLA. The Negotiated Salary Component may not be a factor in determining a competing UC offer (see Appendix A in APM 510). A start-up package in intercampus recruitment may not include funds to support a negotiated salary increment.

XI. Teaching Load

Participation in the NSP may not negatively impact a faculty member’s regular teaching obligations. Course buyouts funded from contracts, grants, or other external sources are forbidden, without exception.

XII. External Consulting

External consulting and other outside professional activities, both compensated and uncompensated, are permitted in accordance with APM 025, conflict of Commitment and Outside Activities of Faculty Members.

If any portion of the Negotiated Salary Component is based on overload teaching in a self- supporting UC program, the appropriate number of consulting days must be forfeited in accordance with APM 025.

XIII. Responsibilities

A. Faculty Responsibilities

• Remain in Good Standing as defined in Section II of this document;
• Secure eligible non-state-appropriated funds to support the proposal;
• Comply with mandatory training requirements;
• Work with the appropriate Fund Manager to verify proposed funding source(s);
• Submit a proposal to the Department Chair;
• Remain compliant with University policies including, but not limited to, Conflict of Interest, Conflict of Commitment, Faculty Code of Conduct, requirement to submit proposals and receive awards for grants and contracts through the University, and effort reporting certification requirements.

B. Fund Manager Responsibilities

• Provide accurate fund status and account activity reports;
• Confirm that proposed funding sources are allowable and available for the entire fiscal year;
• Document the funding authorization process used for all proposals;
• Verify that efforts for salaries charged to sponsored projects funded by federal sources are accurately calculated.

C. Department Chair/Department Responsibilities

• Issue annuals calls for participation to eligible faculty in the department;
• Evaluate and endorse or deny individual faculty proposals;
• Verify that faculty members are in Good Standing;
• Verify that appropriate and sufficient fund sources are available;
• Verify that the Contingency Plan requirements are met;
• Forward endorsed proposals to the Dean;
• Issue annual salary confirmation letters to participating faculty members;
• Ensure every negotiated salary is entered in the payroll system;
• Perform a post-audit of the salary implementation in payroll to ensure payroll records match approved negotiated salary rates.

D. Dean Responsibilities

• Establish the deadline for submission of proposals within the school or division;
• Assess whether a faculty member is in Good Standing;
• Review and endorse or deny proposals forwarded by Department Chairs;
• Provide written information on how to return to Good Standing to any faculty member who is determined not to be in Good Standing;
• Forward to the VCAAP information on proposed faculty participation;
• Ensure that appropriate resources are available to support the NSP;
• Manage funding of the NSP and cover any unforeseen shortfalls;
• Maintain documentation of reviews.

E. Vice Chancellor for Academic Affairs and Personnel Responsibilities

• Develop the campus Implementation Procedures in consultation with other administrators, the division Academic Senate, and the Office of the President;
• Issue annual calls to schools and divisions on the general campus;
• Make the final decision regarding faculty proposals to participate in the NSP (this authority may be redelegated);
• Review and endorse or deny exception requests not to take the maximum summer salary;
• Ensure the following responsibilities are executed by the Academic Affairs and Personnel Office (AAPO):
  • Develop strategies for broadening program participation, including strategies for senior program participants to mentor junior faculty to explore funding opportunities
  • Serve as Office of Record for approved proposals
  • Prepare data for the UC System Provost/EVP as requested by the Office of the President
• Review faculty appeals of negative findings by the Dean and the Chair;
• Maintain appeal resolution documentation.

F. Executive Vice Chancellor and Provost Responsibilities

• Maintain operational authority over the development, implementation, and monitoring of the campus Implementation Procedures;
• Ensure that affected Senate faculty and appropriate division Academic Senate committee(s) are afforded the opportunity to review and comment on the proposed campus Implementation Procedures;
• Establish campus data collection and reporting process to monitor the effectiveness and equity of the campus Implementation Procedures;
• Maintain open communications with the division Academic Senate about implementation issues and concerns;
• Review and endorse or deny proposed exceptions to the campus Implementation Plans other than summer salary requirements.

G. Chancellor Responsibilities

• Determine whether the campus will participate in the NSP after consultation with the division Academic Senate and EVCP;
• Submit the campus Implementation Plan to the UC System Provost/EVP;
• Submit revisions to the campus Implementation Procedures to the UC System Provost/ EVP.

H. Academic Senate Responsibilities