NSP — Implementation Procedures

1. UC Academic Senate faculty members, except for faculty listed in subsection B, will have the option to participate in the NSP if they do not hold an appointment in a unit eligible for another compensation plan (e.g., Health Sciences Compensation Plan); and who hold a University appointment at or greater than 50 percent time that is constituted by one or more of the title series listed below and who meet the eligibility criteria set forth in subsection C of this section.
   • Professor
   • Professor In Residence
   • Professor of Clinical __ (e.g., Optometry)
   • Professor of Teaching
   • Acting appointees in one of the above eligible faculty titles

Academic Senate members who hold a concurrent job title may participate in the NSP in both titles, even if the concurrent job title is not a Senate title (e.g., Professor/Agronomist).

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 as long as participation would not disrupt the individual’s fulfilling of their duties.

All eligible members of the department faculty may apply to participate in the salary program. All members should receive a copy of the implementation procedures and any other related documents (e.g., APM – 672).

2. Faculty who are ineligible to participate in the NSP include:
   • Faculty who hold appointments in a Health Sciences school, college, or department with a Health Sciences Compensation Plan or who are subject to APM – 675, which prohibits participation in other compensation plans
   • 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 members appointed in a Health Sciences department and eligible to participate in the Health Sciences Compensation Plan.
3. NSP participants must meet all departmental Good Standing criteria. It is the expectation that every faculty member who submits a request to participate in NSP does so in good faith by verifying that they have met all Good Standing requirements. Faculty seeking to participate in the NSP should review their compliance with all relevant guidelines before submitting a request. Department chair will be asked to verify Good Standing requirements with regards to teaching, research supervision and service. Good Standing criteria include the following
   • the faculty member is meeting expectations with regard to carrying out faculty duties as commonly understood;
   • the faculty member has advanced in rank or step in their last academic personnel review (or has undergone an equivalent satisfactory review);
   • the faculty member is up to date on all their mandatory training requirements, including but not limited to laboratory safety, human subjects, and sexual harassment prevention;
   • the faculty member is in compliance with all applicable University policies, including but not limited to Patent Acknowledgment, and Outside Professional Activities;
   • there has been 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;
   • the faculty member is not currently under a 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;
   • Fulfillment of the approved teaching load (course buyouts are not allowed during participation);
   • 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;
   • Compliance with UCI’s research policies (e.g., research conduct and administration).  All research contracts and grants are in Good Standing (e.g., no outstanding deliverables, or projects in unauthorized deficit, etc.);

1. External funding is any fund source that is not state-appropriated general funds or UC general funds such as Chancellor Fellow’s funds, Opportunity Funds and Overhead Recovery funds. The funds may not be drawn from tuition paid by students in state-supported projects or discretionary funds associated with the department, school, or college and that are fungible for other purposes. Funds not generated by the faculty member should not be repurposed to support the Negotiated Salary Component (NSC).
   
   The following external funding sources may be used to support the NSC:
   • Contract and grant support
   • Endowment income
   • Gift income
   • Professional degree fees
   • Self-supporting degree fees
   • Royalties
   • Licensing fees

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

2. The Dean/Dean 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
3. The intent of the program is for faculty member to have access to the external funds due to their research, teaching, or outreach activities.
4. Funding for the 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 2025-26, must be on campus by June 30, 2025.
5. Adequate external funding must be available for the entire year of the proposal, without exception. Cap gap must also be fully funded during the academic year, summer cap gap is encouraged but optional.
6. Funds awarded after the negotiated salary increment has been approved may be considered eligible compensation for the following academic year.  For example, Professor A enters an NSC agreement for AY 2025-2026, which begins on July 1, 2025.  In October 2025, they receive a large award that they would like to have considered for NSC.  The October 2025 award is not eligible compensation for AY 2025-26 but is eligible compensation for AY 2026-27.
7. 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.
8. All charges to contracts and grants must be comply 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.
9. 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.

Participating faculty will receive their base salary (as defined in APM – 672-4-b) in addition to an optional Negotiated Salary Component. (This Program does not change the faculty member’s appointment basis: academic or fiscal. Those on academic-year appointments remain eligible for summer ninths which will continue to be processed under local guidelines.)

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 covered compensation under the University of California Retirement Program (UCRP) up to the amount permissible by Internal Revenue Code provisions and in accordance with UCRP provisions and regulations.
2. Negotiated Salary Component (NSC):
   A Negotiated Salary Component beyond the Base Salary that was in effect on July 1 of the proposed year of participation may be negotiated annually and has a cap of 30% of a faculty member’s Base Salary. Negotiations between the faculty member and Department Chair will be conducted annually to determine the NSC for the year. 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:
   Additional compensation programs for faculty earning summer ninths remain intact. Those who hold academic-year Senate appointments must take the maximum amount of summer salary (summer ninths) available to them. Summer salary from all sources may not exceed three (3) ninths for academic-year appointees (see APM – 600).
   • Each ninth taken by a participant must be taken at the rate of the Total UC Salary 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 (e.g., the NSP should not be used to shift the timing of disbursement of summer salary to an earlier period in the AY or FY cycle). 
   • 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.
   • NSP participants may take fewer than three (3) ninths if they teach in Summer Session (which counts toward a participant’s total summer salary) or if they opt to take personal time during their off-duty period in the summer. Exception to the summer ninth requirements shall be requested by the participant as part of their NSP application submission.
   • 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.
   • All applicable federal policies still apply, including, for example, limits on summer salary that may be charged to grants, agency salary caps, and prohibitions on the use of state funds to pay the cap gap.  Sponsor salary rate and compensation caps must be observed and state funds may not be used to pay any cap gap.
5. Administrative Stipend:
   NSP 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.

The following chart defines the normal funding source for each salary component and whether the salary component is considered covered compensation for UC Retirement plans:

The TUCS (Base Salary + Negotiated Salary Component) 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.

1. 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.
2. Early withdrawal from the program is allowed only upon separation 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 Senate Bylaw 230), misuse of funds, due to an increase (i.e. general range adjustment) in Base Salary that subsumes the NSC, or upon appointment to an ineligible administrative appointment or title series.
3. Retroactive participation is not permitted.

1. Sabbatical leave and other leaves with pay will be granted at the TUCS Rate in effect during the period of the leave. State funds may be used only for the portion of a sabbatical leave related to a faculty member’s Base Salary.
2. Paid medical/sick leave will be granted at the TUCS rate through June 30 of the year of the leave (see APM – 715). If external fund restrictions preclude payment of medical/sick leave, the department must provide appropriate unrestricted funds to ensure full payment of the TUCS (the NSC cannot be paid through state funds).
3. State funds may be used only for the portion of a leave related to a faculty member’s scale-based salary.
4. 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.
5. The University is under no obligation to continue the NSC if the medical/sick leave continues into the next salary negotiation cycle (July 1 – June 30). (7/1 to 6/30).

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, if the recruiting campus is participating in the NSP, the faculty member must negotiate a new proposal according to the Implementation Plan at the new campus. The NSC may not be a factor in determining a competing UC offer. A start-up package in intercampus recruitment may not include funds to support an NSC.

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.

1. Deans must provide all eligible faculty, as defined in Section I, with a copy of these governing rules of the NSP.
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 Financial Officer/Department Business Officer.  The Financial Officer/ Department 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 Fiscal Officer/ Department Business Officer, Interested and eligible faculty shall submit an NSP application for the following fiscal year. The application should indicate whether the participant plans to take the maximum summer salary and, if not, should address the reasons for requesting an exception on the NSP application.
5. Negotiations are for one fiscal year, effective July 1 and ending on June 30. Retroactive participation is not permitted. Renewals are not automatic. Participation must be renegotiated each year, evaluated by the Chair and Dean, and approved by the VPAP each year.

1. Chairs and Department Business Officers, in collaboration with other essential UCI personnel will review proposals to ensure that:
   • The faculty member meets all Good Standing requirements.
   • The amount requested is consistent with the implementation procedures.
   • Allowable and appropriate resources are available to support the proposal including benefits costs, sponsor salary cap gap, graduate student support, salary threshold levels, research equipment, and (if applicable) contingency funds requirement.
2. The Department Chair will review the proposals and forward endorsed proposals to the Dean by April 15. The Dean will review proposals and will forward all endorsed proposals to the VPAP by May 1.
   • If the Chair does not endorse the proposal, the Chair should meet with the faculty member. If an agreeable change to the proposal is reached, any modification should be documented and the proposal forwarded as outlined above.
   • If the proposal is not endorsed by the Chair because the faculty member does not meet the minimum eligibility criteria, the Chair will inform the Dean and the Dean will review. If the Dean concurs with the chair, the Dean will forward the proposal, the Chair’s assessment and the Dean’s assessment to the VPAP. The VPAP will review the proposal and the assessments provided by the Chair and Dean and issue a final resolution within fifteen (15) business days.
   • If the Chair does not recommend a proposal due to insufficient funding, the following process shall be followed:
     1. The Chair must meet with the faculty member within five (5) business 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 NSP annual deadlines, a proposal may be resubmitted.
3. The VPAP will make a final decision and inform the Dean of approved proposals by June 1.
   • Upon notification by the VPAP that a proposal has been approved, the Chair or Department designee will send a salary confirmation letter to the faculty member confirming the faculty member’s total salary for the coming fiscal year.
   • Notification of approved participation will be sent to the faculty member via the Dean Office, Business Office, or appropriate CPO.
4. Approved proposals shall be documented in writing and signed by the faculty member, Chair, Dean, and VPAP.

The Dean or their designee is responsible for managing funding of the Negotiated Salary Program and will cover a faculty member’s Total UC Salary for the entire fiscal year period (July 1 to June30), even if the faculty member loses funding during the annual negotiated year period.

1. Each participating school, department, or division is required to establish a Contingency Plan to provide the funds necessary for the agreed-upon compensation to each NSP participant in the event of a funding shortfall.
2. The VPAP has the responsibility for establishing the requirements for the Contingency Plan
3. Each School Dean shall establish a contingency fund to ensure coverage of the Total UC Salary in the event of a funding shortfall. The participating faculty member’s contribution to the contingency fund shall be 10%, at a minimum. It is expected that the contingency fund will grow and reach steady state over 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.
4. The Dean or their designee is required to establish sufficient funds to serve this purpose. If the funds that support the Contingency Plan are insufficient, the VPAP may require the relevant Dean to provide support from other non-state accounts. If such support is unavailable, VPAP will ask the relevant Dean/School to reduce the participant’s NSC in accordance with any fund restrictions across the school and/or department.
5. The contingency fund account minimum balance will be set at 25% against the total current year liability or the highest paid liability of that year, whichever is greater. 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. f any contingency fund surplus will be discussed with the School’s Faculty Executive Committee, and approved by the Dean and the EVCP.
6. Use of any contingency fund surplus will be discussed with the departmental leadership, requested by the Dean and approved by the VPAP.
7. Contingency fund accumulations and expenditures shall be reported annually to the VPAP, including the consultation that occurred regarding the use of funds.
8. Funding obligations for the Total UC Salary including the Negotiated Salary Component—as well as other research responsibilities such as reserve fund requirement, NIH salary cap gap, graduate student support, salary threshold levels, research equipment, benefits, salary raises, etc.–must be met and therefore this must be determined during the negotiation process.

The following data will be collected by Office of Academic Personnel on an annual basis and available upon request from the UC System Provost/EVP:

1. Person
   • Campus
   • Fiscal Year
   • Employee ID
   • Name
   • New or continuing participant
   • Early withdrawal from the program?
   • If yes, reason: Negotiated Salary Component subsumed by increase in Base Salary, Separation, Retirement, Loss of Good Standing, or Disciplinary Action.
   • School/College/Division
   • Department
   • Title/job description from UCPath
   • Rank
   • Step
   • Above or Off Scale
2. Total UC Salary Rate
   • Base Salary (as defined in APM – 672-4-b)
   • Administrative stipend
   • Negotiated Salary Component amount
   • Negotiated Salary Component %
   • Total UC Salary Rate (Base + Negotiated)
3. Summer Ninths
   • Summer ninths rate
   • Total summer ninths taken
   • If less than three (3) summer ninths, reason for exception
4. Negotiated Salary Component funding (amounts and fund categories)
5. Negotiated Salary Component contingency funding, if applicable (amounts and fund categories)
6. Any other additional information that will be helpful in evaluating the effectiveness of the program such as:
   • Teaching loads, including those who bought out a teaching assignment during the year (data both before and during the program period) and indication of teaching done on-load or as overload;
   • Graduate student and post-doc support by department and individual (data both before and during the program period); and
7. As outlined in APM 672 – Appendix A, program metrics will be gathered and submitted annually to the UC System Provost/Executive Vice President. The VPAP will conduct yearly reviews of the metrics collected during the NSP application process to assess program stability and its effect on faculty recruitment and retention as well as research, teaching, and service. Additional input from Deans, Chairs, and Faculty members may be requested to address the following as appropriate:
   • A review of the process at various stages
   • Feedback on areas of concern during the process
   • Details on salary negotiations as part of recruitment and retention