Summer Compensation

Updated for Summer 2019

Note: Be sure to follow the Negotiated Salary Trial Program implementation procedures when calculating summer salary for faculty who have received approval to participate in the NSTP. Additional compensation paid as summer salary is based on the Total UC Salary (TUCS) for those faculty participating in the program.

Summer Salary Cap

The Department of Health and Human Services (DHHS—which includes NIH, HRSA, AHRQ, CDC, CMS, SAMSA, and other agencies) imposes an annual salary limitation on all of their grants, contracts and cooperative agreements (“awards”). The current salary cap is set at Executive Level II ($192,300) for awards issued on or after January 6, 2019.

For awards with an initial issue date on or after January 6, 2019 :

The $192,300 salary cap will apply.
The monthly rate is $16,025.00.

APP 9-50, Appendix I, “Salary Caps”, has been revised to reflect this information. Please apply the appropriate Salary Cap when calculating summer salary.

Note: If in doubt as to which salary cap applies to a specific DHHS fund source, please contact the Grants Officer or Contracts Officer assigned to your department.

Description of Service  (DOS) Codes

Please be sure to use current DOS codes when entering PPS transactions for summer salary — especially for DHHS capped salary entries — as noted below.

Frequently Used Summer Salary DOS Codes:

ACR Additional Compensation – Research
Used for academic-year professorial faculty who are paid on job codes designated for summer additional compensation for research; payment is at the 1/9th rate. A percent of time must be used with this DOS code.  For AY academic appointees eligible for the employer/employee 403(b) contribution on summer salary.

ARC Additional Compensation – Research –Agency-Capped Salary (Used with appropriate 09/12 research job code)
Used to identify agency capped salaries for academic-year professorial faculty receiving summer additional compensation for research.  For AY academic appointees eligible for the employer/employee 403(b) contribution to summer salary.

AAC Additional Compensation – Research – Agency-Capped Salary, Above Cap Portion – Flat Amt (aka By Agreement)
Used with JC 003998 Salary Supplementation distributions for supplementing agency-capped salaries (subject to funding restrictions).  Normally used only with available non-federal or non-state funding sources.  For AY academic appointees eligible for the employer/employee 403(b) contribution on summer salary.

For a complete list of summer salary DOS codes, please refer to APP 9-51, Appendix V, Description of Service Codes.

APP 9-51:  Additional Compensation Worksheet

APP 9-51, Appendix IV, Additional Compensation Worksheet, has been revised to reflect the Summer 2019 service calendar.  This May 1, 2019 revision replaces the current Appendix IV dated May 1, 2018.

APP 9-51, Appendix III, Additional Compensation Worksheet (pdf), has also been revised.  This May 2019 revision replaces the current Appendix III dated May 1, 2018.

APP 9-52:  Summer Salary Online Exhibit – DHHS Cap

APP-9-52, Appendix I, Exhibit G, “DHHS Funds Subject to the Salary CAP including a Salary Supplement”, has been revised to reflect the current DHHS salary cap of $192,300.

Please refer to this online example when preparing PPS actions for 2019 summer salary reflecting a DHHS salary cap.  Please be sure to use current dates and time reporting factors for Summer 2019.

APM 190, Appendix G:  Retirement Contributions on Academic Appointee Summer Salary

The total contribution rate is 7% of eligible summer salary, based on an employee pretax contribution of 3.5% and an employer matching contribution of 3.5%. 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 403(b) investment choice.

Please refer to APM 190, Appendix G – for information regarding the retirement contribution on academic summer salary

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