Policy and Procedure for Summer Salary
Policy and Procedure Governing
ELIGIBLE TITLE SERIES
Professor, Acting Professor, Adjunct Professor, Visiting Professor, Lecturer and Senior Lecturer with Security of Employment or Potential Security of Employment.
ACADEMIC-YEAR APPOINTEES (9-MONTH)
Summer salary from all sources, including Summer Session, may not exceed 3/9ths of the annual base salary.
FISCAL YEAR APPOINTEES
May receive additional compensation for work performed during his/her vacation period. A corresponding number of accrued vacation days must be deducted. Compensation may not exceed 1/12th of the annual base salary.
An individual may not receive compensation for more than 57 working days for research, teaching and/or administrative service.
Total compensation from all sources for service during the summer period may not exceed 3/9ths of an individual's nine-month salary rate (“effort base”). Payments covered under this policy include research, teaching, administrative compensation, intercampus lectures or other consulting services, and summer session payments. University Extension payments, and payments made in connection with Self-Supporting Program teaching are also included. Payments of stipends for academic administrative service (and honorariums), are not included in the compensation.
Individuals compensated during the summer from more than one department need to exercise care that payments made and service performed in each department are coordinated and do not overlap or exceed limitation.
I. DEPARTMENT OF HEALTH & HUMAN SERVICES (DHHS) SALARY LIMITATION
Under the Fiscal Year 2016 Consolidated Appropriations Act and the Further Continuing the Security Assistance Appropriations Act 2017 (Continuing Resolution), salaries that are directly charged to contracts, grants and cooperative agreements funded by the National Institutes of Health (NIH), the Substance Abuse and Mental Health Services Administration (SAMHSA), Agency for Healthcare Research and Quality (AHRQ) awards and other DHHS awards, are limited to the level of the Executive Level II of the Federal Executive Pay Scale. This limit on salary is now mandated for all DHHS awards including, among others, the Centers for Disease Control (CDC), and the Health Resources and Services Administration (HRSA). The 2016 Consolidated Appropriations Act (H. R. 2029), signed into law on December 18, 2015, restricts the amount of direct salary which may be paid to an individual under an HHS grant, cooperative agreement or applicable contract to a rate of no greater than Executive Level II of the Federal Executive Pay Scale. Unless specifically disallowed by a DHHS agency program, all DHHS awards will be subject to the Executive Level II annual salary rate. The Executive Level II rate was increased by 1% effective January 8, 2017. As a result, the salary cap for Fiscal Year 2017 (October 1, 2016 – September 30, 2017) should be applied based on the Executive Level II rate at the time the salary was earned:
- between October 1, 2016 and January 7, 2017 is capped at $185,100, and
- between January 8, 2016 and September 30, 2017 is capped at $187,000
The DHHS salary cap may be imposed on some programs for non-profit sponsors and certain State of California grant programs. Please check the sponsor guidelines regarding their policy on the use of the current or previous NIH salary caps.
Executive Level II compensation is $187,000 per year as of January 8, 2017. This means that summer salary payments to an individual supported by NIH, SAMHSA, AHRQ or other funds to which this cap is applied, should be calculated using the rate of $15,583 ($187,000/12), for full-time effort.
While supplementation of DHHS-capped salaries paid to University of California faculty is allowable, it is subject to the availability of funds and is not an entitlement. Only fund sources other than state general funds, or contract and grant funds may be used for supplementation. Payment of supplements should be made as a by-agreement amount (BYA) using Title Code 3998 (Salary Supplementation).
Additional information about the DHHS/NIH salary cap can be accessed at:
II. BENEFIT CHARGES
Summer Salary is subject to a 6.20% OASDI matching employer charge until the employee’s earnings reach the amount of $127,200 during the 2017 calendar year. In addition, all payments are subject to a 1.45%* Medicare charge. Both the employee and the department will be assessed the OASDI and Medicare charges. The department will be assessed Workers Compensation and Unemployment Insurance charges. The percentage factor depends on fund source.
*The employee contribution to Medicare increases to 2.35% on any income paid after an employee’s year to date earnings exceeds $200,000.
III. RETIREMENT CONTRIBUTIONS
The total contribution rate will be 7% of eligible summer salary, based on an employee's pretax contribution of 3.5% and an employer pretax contribution of 3.5%. The employer's contribution will be attributed to the same funding source that provides the academic appointee’s summer salary. This means a 3.5% employee out of pocket, pretax deduction, matched by an equal amount assessed to the fund source(s) used to pay the summer salary payment(s), for a total of 7% credited to the employee’s DCP investment choice. Please refer to APM 190G.
IV. SUMMER SESSIONS SERVICES
Individuals employed for a full load (100% of full time) in Summer Sessions are not eligible for additional employment during the period of Summer Sessions service. Joint service in Summer Sessions and on other funding may not exceed a total of 100% of full time or 3/9ths of an individual's nine-month salary rate.
V. EXTRAMURAL FUNDING
Summer Quarter and vacation employment supported from extramural funds is limited in each case by the terms of the supporting contract or grant and in accordance with agency’s policy. Employing units and Principal Investigators bear responsibility for determining that proposed summer quarter or vacation employment conforms with contract or grant terms or that the appropriate approvals are secured in advance of service. It is assumed that any individual employed against extramural funds will not be absent from the site of the research or teaching programs for vacation or other purposes during the period for which compensation is to be paid.
VI. SABBATICAL ELIGIBILITY ACCRUAL
No sabbatical credit is earned for Summer Salary service and research.
VII. FELLOWSHIPS AND AWARDS
Recipients of Faculty Career Development Awards for summer salary may accept additional summer employment other than during the period of the award. Total compensation from all sources, including the amount of the award, may not exceed 3/9ths of the annual salary.
VIII. PAYROLL PROCESSING
Summer salary is paid on the monthly pay cycle and is included with the faculty member’s regular salary. Departments are required to make timely online entries for all summer salary. See Attachment I “Web Instructions for Entering Summer Salary Online” (or Attachment II “EDB Instructions for Entering Summer Salary Online”). For payment instructions, see Attachment III “Payroll Processing for Summer Salary.”
IX. SITE OF RESEARCH OTHER THAN UCLA
X. OTHER RESTRICTIONS
Advance approval of the Vice Chancellor of Academic Personnel, is required on all appointments funded from 19900 funds exceeding 2/9ths and on all 1/12th vacation payments. Please complete the “Additional Compensation for Fiscal Year Appointees” form and forward to the Academic Personnel Office.
Any questions, please contact May Nishiyama at x68004
Web page updated June 5, 2017