NSTP — Implementation Procedures

The Negotiated Salary Trial Program (“NSTP”) allows eligible ladder-rank faculty in participating schools to contribute external funding resources toward their total University of California (UC) salary.  The NSTP, like the well-established Health Sciences Compensation Plan (HSCP), allows faculty to utilize external fund sources to support a portion of their total compensation.  The trial program, whose initial five year pilot began in FY 2013-14 has been approved for an additional four years beginning July 1, 2018. The NSTP will not place any additional burden on the UC Retirement Plan (UCRP).

The NSTP policies and procedures are issued by UC Office of the President and defined in their Basic Program Document. NSTP participants remain subject to the requirements of other UC policies including, but not limited to, Conflict of Interest, Conflict of Commitment, Faculty Code of Conduct, Lab Safety, Sexual Harassment Prevention, and policies requiring submission of proposals and receipt of awards for grants and contracts through the University.  External consulting and other externally compensated activities will continue to be permitted in accordance with APM 025, Conflict of Commitment and Outside Activities of Faculty Members.

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I. Eligibility
  1. Except for faculty categories listed in subsection B of this section, the NSTP is available to all UCI ladder-rank and in-residence faculty in non-HSCP schools who hold at least half-time appointments, and who meet the eligibility criteria set forth in subsection C of this section.
  1. The following faculty are not eligible to participate in the NSTP:
    1. Full-time deans and faculty administrators listed in APM 240 and APM 246;
    2. Senior Management Group (SMG) members;
    3. Faculty members appointed in a Health Sciences department and eligible to participate in the Health Sciences Compensation Plan.
  1. Faculty participating in the NSTP must be in good standing according to the following criteria:
    1. Advancement in rank or step at the last on-cycle academic review, or equivalent satisfactory review;
    2. Fulfillment of the approved teaching load;
    3. Fulfillment of research support responsibilities and staffing, including but not limited to:  current and incoming graduate student employment, tuition, and benefits; postdoctoral employment; staff research positions, etc.;
    4. Fulfillment of University service commensurate with rank and step;
    5. All research contracts and grants are in good standing (e.g., no outstanding deliverables, or projects in unauthorized deficit, etc.);
    6. Compliance with all applicable University policies (including, but not limited to the  Faculty Code of Conduct, Conflict of Interest, and Conflict of Commitment); and
    7. Compliance with UCI’s research policies (e.g., research conduct and administration), reporting (e.g., Patent Acknowledgment, Outside Professional Activities) and training requirements (e.g., laboratory safety, human subjects, sexual harassment prevention).
II. External Funding
  1. External funding is any fund source that is not State-appropriated general funds, UC general funds, Chancellor Fellow’s funds, Opportunity Funds, Overhead Recovery funds, student tuition funds or other internal sources. External funds include but not limited to endowment or gift income, professional degree fees, self-supporting degree fees, and contract and grant support.  The Dean or his/her designee will have responsibility for managing program funds, reviewing the availability of F&A, and covering any unforeseen shortfalls. General Funds cannot be substituted for external funds in support of the program
  2. The intent of the program is that the faculty member has access to the external funds due to  his or her research, teaching, or outreach activities. The funds should not be discretionary funds located in the department, school, college, or campus.
  3. Funding for the Negotiated Salary Component provided under the NSTP (hereafter “NSC”) must be awarded and deposited to a UCI account prior to June 30 of the current fiscal year in order to be considered for the following year’s negotiation.  e.g., Funds that will be used in FY 2016-17, must be on campus prior to July 1, 2016.
  4. Adequate external funding must be available for the entire year of the proposal, without exception.
  5. Funds awarded after the salary increment has been negotiated may be considered eligible compensation for the following academic year.  For example, Professor A enters an NSC agreement for AY 2016-2017, which begins on July 1, 2016.  In October 2016, she receives a large award that she would like to have considered for NSC.  The October 2016 award is not eligible compensation for AY 2016-2017, but is eligible compensation for AY 2017-18.
  6. Funding for the NSC must have a stable source, paid in accordance with any related fund source restrictions, and must be sufficient to include the related benefit costs.
  7. All charges to contracts and grants must be complying with Office of Management and Budget (OMB) Circular A-21.  Salaries charged to sponsored projects funded by federal sources must be accurately and appropriately calculated and timely certified.
  8. When Federal projects are involved, the program must be complaint with Federal Uniform Guidance regulations at 2 CFR 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.” Participating faculty retain their obligation to abide by University policy including Conflict of Interest, Conflict of Commitment, the Faculty Code of Conduct, and the policy on the requirement to submit proposals and receive awards for grants and contracts through the University.
III. Compensation Components

Participating faculty will receive their Scale-Based Salary in addition to an optional Negotiated Salary Component.

  1. Scale-Based Salary (SBS).  The scale-based salary is an individual’s regular scale salary rate plus any off-scale as approved at the time of hire, as a result of a retention offer, or regular academic review.  The SBS is considered covered compensation under the University of California Retirement Plan (UCRP), up to the amount permissible by Internal Revenue Service (IRS) Code provisions and in accordance with UCRP policy and provisions.
  2. Negotiated Salary Component (NSC).  A negotiated salary component beyond scale-based salary, which must be negotiated annually.  The NSC is capped at 30% of the scale-based salary.  The NSC is not considered covered compensation under the UCRP.
  3. Total UC Salary (TUCS).  The total UC salary consists of the participant’s scale-based salary plus the NSC.
  4. Summer Salary.  Faculty may earn up to three-ninths additional summer compensation for research, teaching, and/or administrative service.
    1. Summer ninths shall be paid at the TUCS rate, according to standard summer salary policies.  Faculty must maximize summer ninth opportunities before utilizing the NSTP (e.g., the NSTP should not be used to shift the timing of disbursement of summer salary to an earlier period in the AY or FY cycle).  Any portion of a ninth paid for service in June shall be based upon the individual’s salary in effect on June 30.
    2. If summer salary compensation is based on the academic year salary, all Summer Session teaching compensation will be based upon the TUCS rate in effect on June 30 of the calendar year in which the Summer Session begins.
    3. Summer salaries may come from both internal and external fund sources, and are not covered compensation under UCRP, although a special Defined Contribution benefit applies.
    4. All applicable sponsor policies remain in effect for NSTP participants, including rate limitations and salary compensation limits.  For example, a maximum two months’ salary in any one year may be charged to NSF grants.  Sponsor salary rate and compensation caps must be observed and state funds may not be used to pay any cap gap.
  1. Administrative Stipend. NSTP participants may receive administrative stipends, in accordance with established campus policy; however, stipends issued for official administrative roles may not be included in the NSC and must be recorded as separate payments.  Administrative stipends may come from both internal and external fund sources, and are covered compensation under UCRP.
IV. Participation Effective Dates
  1. Phase one of the NSTP began on July 1, 2013. Phase two of the NSTP will be effective July 1, 2018.
  2. The systemwide Provost may suspend the systemwide trial program on June 30 of any year.  The UCI EVCP may suspend the NSTP for some or all Schools on June 30 of any year.
  3. The TUCS rate will be effective July 1 through June 30.  Newly hired faculty with mid-year start dates may participate from their appointment begin date through June 30.
  4. The TUCS rate for participating faculty may not be changed for any reason, including but not limited to mid-year salary scale adjustments, retroactive merit increases, or receipt of additional contract and grant funds.  Salary negotiated as part of a retention offer for participating faculty shall become effective on July 1 of the following year.  If a participant’s salary is raised effective October 1 (or any date other than July 1) due to a general range adjustment or Cost of Living Adjustment (COLA), the NSC will be reduced, and the covered compensation increased, so that the TUCS remains unchanged for the fiscal year.
  5. Early withdrawal from the NSTP is allowed only upon separation, transfer to a faculty category that is not eligible for participation, retirement from the University, or as a result of an official disciplinary action, as described in APM 015 and 016 and Senate Bylaw 230.
  6. Retroactive participation is not permitted.
V. Leaves of Absence
  1. Sabbatical leave and other leaves with pay may be taken by NSTP participants in accordance with established campus policies.  Leave will be granted at the TUCS rate in effect during the leave period.
  2. State funds may be used only for the portion of a leave related to a faculty member’s scale-based salary.
  3. If external fund restrictions preclude payment of medical leave, the department must provide appropriate unrestricted, non-state funds to ensure full payment of the TUCS.
  4. The campus is under no obligation to continue the NSC if a medical leave continues into the next salary negotiation cycle (7/1 to 6/30).
VI. Intercampus Transfers
  1. Temporary intercampus appointments, including Faculty Consultant payments, will be based on the TUCS rate in effect during the temporary appointment.
  2. For permanent intercampus transfers, APM 510 applies.  The NSC may not be a factor in determining a competing UC offer.  If the new campus is participating in the Trial program, the faculty member must negotiate a new proposal with his/her new campus. A start-up package in inter-campus recruitment cannot include funds to support a negotiated salary component.
VII. Teaching Overload

If any portion of the NSC 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.

VIII. Proposal Submission Process
  1. Deans must provide all eligible faculty, as defined in Section I, with a copy of these governing rules of the NSTP.
  2. In March of each year, a call will be issued to eligible faculty by their respective Deans regarding the annual negotiation for the coming fiscal year.
  3. Prior to submission of a proposal, the faculty member must verify the proposed funding source with the appropriate Fund Manager/Department Business Officer in writing.  The Fund Manager/ Business Officer will confirm that the funding source is allowable, available, unencumbered, and that it will remain in place for the entire fiscal year.
  4. After funding has been verified by the Fund Manager/ Business Officer, the participating faculty member should submit the NSTP Proposal Form (Attachment A) to her/his Chair, by no later than April 1.
  5. Renewals are not automatic.  Continuing participating in the NSTP must be renegotiated, evaluated by the Chair and Dean, and approved by the EVCP each year.
IX. Evaluation of Proposals
  1. Chairs and Business Officers, in collaboration with other essential UCI personnel will review proposals to ensure that:
    1. The requesting faculty member meets all good standing requirements of Section I, C;
    2. The TUCS requested is consistent with these rules;
    3. Allowable and appropriate resources are available to support the proposal, including the reserve fund requirement, sponsor salary cap gap, graduate student support, salary threshold levels, and research equipment.
  1. The Chair will review proposals and forward all proposals with his or her signed recommendation for approval/non-approval to the Dean by no later than April 15.
  2. The Dean will review proposals and forward all proposals with her or his signed recommendation to an ad hoc Academic Senate NSTP Review Committee, for review of whether good standing criteria has been met, by no later than May 1.  The Senate ad hoc committee will forward all recommendations to the Vice Provost for Academic Personnel (VPAP), by no later than May 15.
  3. The VPAP will make a final decision and inform the EVCP and Dean of approved proposals no later than June 1.
  4. Upon notification by the VPAP that a proposal has been approved, the Chair will send a salary confirmation letter (Attachment B) to the faculty member confirming the faculty member’s total salary (TUCS plus any additional compensation) for the coming fiscal year.  Notification of approved participation will be sent to the faculty member, Dean, Business Office, and appropriate CPO.
  5. If the Chair does not recommend a faculty member’s proposal due to insufficient funding, the following process shall be followed:
    1. The Chair must meet with the faculty member within five business (5) days of receipt of the   proposal to discuss the relevant concern, and seek resolution.
    2. If the Chair is not satisfied that funding requirements can be met, the Chair will inform the Dean and the Dean will review.  If the Dean concurs, the Dean will communicate the finding to the faculty member and provide the faculty member an explanation.  If the funding requirements can be reached prior to the annual deadlines, a proposal may be resubmitted.
  1. Approved proposals will be documented in writing and signed by the faculty member, Chair, Dean, and VPAP.
X. Financial Responsibility

The Dean or her/his designee is responsible for managing funding of the NSTP and will cover a participant’s TUCS for the entire fiscal year period (7/1 to 6/30), even if the faculty member loses funding during the annual negotiated year period.

  1. The Dean must build a contingency fund to ensure coverage of TUCS obligations in the event of an unforeseen event (e.g., Section V.C). The participating faculty member’s contribution to the contingency fund should be 10 percent, at a minimum.   It is expected that the contingency fund will grow and reach steady state over a period of time.  The contingency fund may be built through the contribution by each participating faculty member of either (i) released base-salary equal to 10% of the NSC to the contingency fund; or (ii) any eligible fund source (e.g., start-up, unrestricted external funds, such as gift funds, etc.).    If released base-salary is used, it must be replaced by an eligible external fund source.
  2. The contingency fund account minimum balance will be set by the Dean or his/her designee.  If accumulations fall below this level, an increase in contribution rates or a transfer of non-state-appropriated general funds will be required to bring the balance to the required level.
  3. Use of any contingency fund surplus will be discussed with the School’s Faculty Executive Committee, and approved by the Dean and the EVCP.
  4. Contingency fund accumulations and expenditures shall be reported annually to the EVCP, including the consultation that occurred regarding the use of funds.
XI. Reporting to UCOP

The EVCP is responsible for reporting on campus participation in the NSTP to the Systemwide Provost annually.

  1. For each year of the trial, the Campus will collect data on the following in participating Departments:
    1. Funding
      1. External funding utilized in connection with the trial are to be tracked by type, including, but not limited to endowment, contracts, grants (by agency), gifts, and fees.
      2. Development and use of contingency funds.
    2. Demographic Information
      1. Faculty rank and step, gender, race/ethnicity;
      2. Faculty Salary, including off-scale, summer-ninths, negotiated amount;
      3. Teaching loads, including those who bought out a teaching assignment during the year (data both before and during Trial period) and indication of teaching done on-load or as overload;
      4. Graduate student and post-doc support by department and individual (data both before and during Trial period); and
      5. Any other additional information that will be helpful in evaluating the effectiveness of the Trial Program.
  1. Each annual report by the EVCP will include an administrative assessment of relevant issues, including a review of the personnel process at various stages:  CAP, department chairs, and deans.
  2. The EVCP is responsible for providing CAP with post audit annual reports on participation, and soliciting feedback on areas of concern, as well as the following non-exhaustive list of campus stakeholders:
    1. Council on Faculty Welfare, Diversity, and Academic Freedom;
    2. Dean, Graduate Division;
    3. Vice Chancellor, Planning & Budget;
    4. Vice Chancellor, Research;
    5. Associate Vice Provost for Equity and Diversity;
    6. Assistant Vice Chancellor, Institutional Research & Decision Support; and
    7. Office of Equal Opportunity and Diversity.
  3. A comprehensive review at the end of the third year of phase two will assess whether and to what extent NSTP has advanced University goals and whether it should be added to APM policy or terminated.

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