UCLA Negotiated Salary Program (NSP)
Frequently Asked Questions
1. What is the Negotiated Salary Program (NSP)?
The Negotiated Salary Program (NSP) is a flexible compensation program that allows general campus Senate faculty holding a University appointment at or greater than 50 percent time to voluntarily contribute external funding resources toward their “total UC salary.” The “total UC salary” consists of the faculty member’s scale-based salary (including on-scale, off-scale and/or above scale) plus a negotiated salary component that may not exceed 30% of the scale-based salary.
2. Which schools and divisions at UCLA may participate in the Negotiated Salary Program (NSP)?
All schools and divisions that do not currently offer the Health Sciences Compensation Plan will have access to the NSP.
3. What types of external funding resources may be contributed to faculty salary through the NSP?
External funding resources are any funds that are not state appropriations, UC general funds or student tuition funds, and could include endowment or gift income, professional degree fees, self-supporting degree fees, royalties, licensing fees, and contract and grant support. Funds must be in hand by June 30 of the year prior to implementation of the Negotiated Salary Component. 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.
4. Are any faculty members excluded from participation?
Yes, faculty participating in the Health Sciences Compensation Plan may not participate in the NSP. A faculty member choosing to participate in the NSP (e.g., a faculty member with a split appointment in the School of Medicine or School of Dentistry) may not also participate in a Health Sciences Compensation Plan.
5. Will participating faculty be relieved of teaching or service responsibilities?
No, participating faculty must be in “good standing,” which means they must be fulfilling their normal teaching and service responsibilities. They must also demonstrate that their grants are being used to provide designated graduate student support.
6. Does the NSP comply with OMB Circular A-21, Cost Principles for Educational Institutions, which governs award of federal contracts and grants?
The NSP was designed to achieve compliance with OMB A-21. In order to ensure such compliance, effort for salaries charged to sponsored projects funded by federal sources must be accurately and appropriately calculated and certified, and may not exceed 100%.
7. Will the NSP affect scale-based salaries (including on-scale, off-scales, and/or above scale) for participating faculty?
No, scale-based salaries will not change as a result of the NSP.
8. Will the NSP affect participation in the UC Retirement Program (UCRP)?
For participating faculty, the Negotiated Salary Component will not be considered “covered compensation” for purposes of UCRP. Only the scale-based portion of the faculty member’s salary will be considered “covered compensation” for purposes of UCRP, and figure into calculation of retirement benefits.
9. Will faculty participating in the NSP be able to obtain summer salary?
Yes, participating faculty will be able to earn up to three-ninths additional summer compensation for research, teaching, and/or administrative service, as allowable under any applicable federal policies, and must maximize summer ninth opportunities before utilizing the NSP. Summer ninths are paid as a percentage of the total negotiated salary.
10. Will faculty participating in the NSP be able to obtain administrative stipends?
Yes, participating faculty may receive administrative stipends, but those stipends may not be used to support the negotiated salary component.
11. What happens to a negotiated salary if there is a range adjustment, retroactive merit increase, off-scale salary adjustment, or any other change to the faculty member’s scale-based salary during the ensuing academic year?
No changes to the total UC Salary rate may occur during the academic year for which the salary was negotiated. All such changes must take effect for the next academic year.
12. Do campus rules regarding conflict of interest and conflict of commitment apply differently to faculty participating in the NSP?
No, those rules continue to apply in exactly the same way. If, for example, part of the negotiated salary is based on overload teaching in a self-supporting program, the appropriate number of consulting days must be forfeited in accordance with APM 025.
13. How does a faculty member gain access to the NSP?
An eligible faculty member must submit a proposal that is first reviewed by the appropriate fund manager or business officer to confirm that the funding source is allowable and will remain in place for the entire fiscal year. The proposal is then reviewed by the department Chair and Dean to ensure that the requesting faculty member is in good standing, the proposed negotiated salary is consistent with campus rules, and sufficient resources are available to support all elements of the proposal, including graduate student support. The Vice Chancellor, Academic Personnel, has final authority over approval or disapproval of all proposals.
14. What is the procedure if a faculty member’s proposal is disapproved?
If the Chair and Dean do not recommend a faculty member’s proposal because the faculty member does not meet the good standing requirements (see the CALL Appendix 42), an ad hoc NSP Joint Faculty/Administrative Committee (FAC) will review that determination and make a recommendation to the Vice Chancellor, Academic Personnel, who will issue a final resolution within 7 days of receipt of the FAC recommendation.
15. What happens if the participating faculty member unexpectedly loses funding during the academic year of a negotiated salary?
Deans are responsible for managing funding of the NSP, and must cover the negotiated salary component. Deans are permitted (but not required) to establish a contingency fund at a designated percentage rate to ensure coverage of such obligations. Deans are also permitted to authorize the Chair to guarantee availability of the funds, allowing the faculty member to participate in the NSP.
16. If the Dean establishes a contingency fund and there is a surplus, what happens to the surplus?
The Dean will discuss any such use with the departmental leadership. The Executive Vice Chancellor must approve use of any contingency fund surplus.
Revised April 8, 2025
