Office of the Vice Chancellor for Academic Personnel

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1 Office of the Vice Chancellor for Academic Personnel May 28, 2015 DEANS, DEPARTMENT CHAIRS, AND DIRECTORS Re: Summer Policy Enclosed is the edition of the Summary of Policy and Procedure Governing Summer Quarter and Vacation Employment. The service period for appointees on academic year appointments is from June 15, 2015 to September 18, The daily pay rate is 1/57th of 3/9ths of the individual s annual salary as of July 1, Please review the attached policy and the instructions for computation of payments and provide a copy to all individuals who will receive summer compensation of any kind through your unit. A post audit of all summer compensation payments will be performed in order to assist departments in complying with the regulations. Department Chairs and Directors should direct questions regarding the payment of summer compensation to the appropriate Dean s Office. Pursuant to APM c, all Fiscal Year Appointees may receive additional compensation of up to one-twelfth (1/12) of the annual salary for teaching, research, or service performed during vacation. Please see the new form, Additional Compensation for Fiscal Year Appointees available on the Academic Personnel website. The Summer Policy is available online at: Thank you, Academic Personnel Enclosure

2 SUMMER QUARTER AND VACATION EMPLOYMENT POLICY SUMMER QUARTER POLICY GUIDELINES ACADEMIC STATUS Professorial Series - Academic Year Regular, In-Residence, Acting, Visiting and Adjunct Non-Professorial - Academic Year Lecturers, Demonstration Teachers, Academic Coordinators and Academic Administrators PAY BASIS AND RATE 1/9th rate (max. 3/9ths of annual rate); Appointee required to hold a nine-month appointment in an eligible title during the Academic Year to qualify for 1/9th pay status. 1/12th of eleven-month Professional Research rate appropriate to the individual's research qualifications per month worked. VACATION EMPLOYMENT ACADEMIC STATUS Professorial Series - Fiscal Year Regular, In-Residence, Acting, Visiting and Adjunct PAY BASIS AND RATE During the period of accrued vacation, individual qualifies for 1/12th of annual rate in effect during the month worked. Equivalent vacation to be surrendered. Chancellor s prior approval is required. 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 though, 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 Summer Policy Page 1

3 SUMMER QUARTER AND VACATION EMPLOYMENT POLICY I. DEPARTMENT OF HEALTH & HUMAN SERVICES (DHHS) SALARY LIMITATION Under the Fiscal Year 2015 Consolidated and Further Continuing Appropriations Act, 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 2014 Consolidated Appropriations Act (Public Law ), signed into law on December 16, 2014, 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 11, As a result, the salary cap for Fiscal Year 2015 (October 1, 2014 September 30, 2015) should be applied based on the Executive Level II rate at the time the salary was earned: between October 1, 2014 and January 10, 2015 is capped at $181,500, and between January 12, 2014 and September 30, 2014 is capped at $183,300. 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 $183,300 per year as of January 11, 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 $15,275 ($183,300/12), 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: Summer Policy Page 2

4 SUMMER QUARTER AND VACATION EMPLOYMENT POLICY II. BENEFIT CHARGES Summer Compensation is subject to a 6.20% OASDI matching employer charge until the employee s earnings reach the amount of $118,500 during the 2015 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 Compensation that many academic appointees receive for summer session teaching or summer research is not considered Covered Compensation for determining University of California Retirement Plan (UCRP) benefits. Since summer salary can be a significant portion of an academic appointee's annual earnings, The Regents have determined that some coverage for retirement purposes is appropriate. Therefore, an employer and employee contribution to the Defined Contribution Plan Pretax Account based on those summer earnings has been approved by The Regents, to be effective with summer salary payments made on or after July 1, 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. Additional information on this new policy can be accessed online under APM 190 Selected Presidential Policies, Appendix G at: 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 Summer Policy Page 3

5 SUMMER QUARTER AND VACATION EMPLOYMENT POLICY 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 ACCRUALS No sabbatical credit is earned for Summer Quarter service and research. VII. FELLOWSHIPS AND AWARDS Recipients of Faculty Career Development Awards for summer compensation 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 compensation 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 compensation. See Attachment I Web Instructions for Entering Summer Quarter and Vacation Employment Online (or Attachment II EDB Instructions for Entering Summer Quarter and Vacation Employment Online ). For payment instructions, see Attachment III Payroll Processing for Summer Compensation. IX. SITE OF RESEARCH OTHER THAN UCLA Prior approval from the Dean is required to ensure that the site of research is in accordance with the terms of the contract or grant. If the employing unit does not report to a Dean, then the advance approval of the Vice Chancellor of Academic Personnel, is required. Payments for academics being appointed from other UC campuses, should be processed using an Intercampus One-Time Payment Form. This form can be accessed from the Academic Personnel Office website at: X. OTHER RESTRICTIONS Advance approval of the Vice Chancellor of Academic Personnel, is required on all appointments funded from 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 Summer Policy Page 4

6 SUMMER QUARTER AND VACATION EMPLOYMENT POLICY INSTRUCTIONS FOR COMPUTATION OF PAYMENTS MADE FROM ALL SOURCES 2015 WORKING DAYS MONTH WORKING DAYS TIME FACTOR June July August September Definition of a Working Day: Monday, Tuesday, Wednesday, Thursday, and Friday including holidays occurring on any one of these days. Service Period: Any 57 working days from June 15, 2015 to September 18, TIME FACTORS FOR NUMBER OF DAYS WORKED PER MONTH FOR ACADEMIC YEAR FACULTY # OF DAYS WORKED TIME FACTOR # OF DAYS WORKED TIME FACTOR # OF DAYS WORKED TIME FACTOR The use of the daily-rate factor is mandatory; the calendar month basis should not be used Summer Policy Page 5

7 Attachment I WEB INSTRUCTIONS FOR ENTERING SUMMER QUARTER AND VACATION EMPLOYMENT ONLINE Step 1: On the Main Menu select "Change Existing Employee Record" Step 2: Go to "6. Appointments & Distributions Screen" Step 3: Next, "Add Appointment" FIELD Action Code Appointment Number Appointment Type Basis Paid Over Title/Title Code Duration Begin Date End Date Grade DATA INFORMATION Select the action codes that identify the activity or change of information that is occurring at the appointment level. Since this is Additional Employment, enter the action code "13 - ADDITIONAL EMPLOYMENT." This field will be populated with the next available appointment number. Enter the code "5." The Type code for all Academic Appointments is "5." This is the number of months (either nine or eleven) that the appointee is expected to perform service. Enter "09" for an Academic Year appointment or enter "11" for a Fiscal Year appointment. This is the number of months over which the appointee will receive salary. Salary for summer research is calculated over either a 9-month period or an 11-month period. Enter "09" for those receiving salary calculated on the 1/9th basis or "12" for those receiving on an 11th-month basis for vacation research. EXAMPLE: 9/9 or 11/12 Enter the four digit title code. Use only those title codes that represent summer research. EXAMPLE: Assistant Professor/Assistant Research Associate Professor/Associate Research Professor/Research 3205 Do not enter any data in this field. Enter the effective date the summer research appointment will begin. Summer research generally begins on the first workday after the service ends for the Spring quarter. This is the last full day that pay or funding is active. Summer research appointments generally end on the last workday before the service for the Fall Quarter begins. Do not enter any data in this field. continued on next page Summer Policy Page 6

8 % Full Time Enter the percentage of time expected to be worked in the appointment. Fixed/ Enter an "F" if the appointment is fixed, and a "V" if time worked will vary. If Variable funding/salary is from Sub 0 funds, only an "F" should be used. For salary using Sub 2, 5,or 7, an "F" or "V" is acceptable. Rate Code Enter "A". This is the code that identifies whether the amount indicated in the Annual/Hourly Rate field is to be paid monthly. Schedule This identifies the frequency of when pay is to be issued. Enter "MO" for monthly. An appointee can have only one pay schedule. Time Enter "Z" if salary is from Sub 2, 5 or 7. When "Z" is used, time will have to be entered online for positive time reporting in order for the salary to be issued. Leave Enter "N." Leave is not accrued based on summer research. *ADD DIST Select the appropriate appointment number to add the distribution line. Action Select "No Action Code Needed." An Action code at the Appointment Code level is the only one needed. FAU Enter "4" in the "LOC" field which represents the UC campus location, Los Angeles. Enter the six digit department account number. Enter the two digit alpha/numeric cost center code if applicable. Enter the five digit fund number. Enter the code that has been set up to track a specific project. Enter the Sub account number. This will either be 0, 2, 5 or 7 for academic appointments reflecting summer research. Dist % Enter the % of time the faculty member will be paid from the funding. Pay Begin Enter the date summer research will begin. Summer research generally Date begins on the first workday after the service for the Spring quarter ends. Pay End Date Step Rate/ Amount DOS This is the last full day that pay or funding is active. Summer research appointments generally end on the last workday before the service for the Fall quarter begins. This field indicates the salary level within the rank. The step should agree with the faculty member's regular appointment. All Academic Year rates (Regular, In-Residence, Acting, Visiting and Adjunct) are calculated by dividing the annual rate by 9 for the monthly rate. Lecturers and Demonstration Teachers who change to the Professional Research Series should use the Published Scale rates for the Research Series. All Fiscal Year Professorial rates are calculated by dividing the annual rate by 12 for the monthly rate. All faculty who are paid as Deans in the Senior Management Group titles for the current academic year are calculated by dividing the annual rate by 12 for the monthly rate. This is the Description of Service Code. The most commonly used DOS codes for summer research are: ACA - Additional Compensation Administrative ACR - Additional Compensation Research AFR - 1/12th Vacation Research Prequisite Work Study Program Off/Above Scale Do not enter any data in this field. Do not enter any data in this field. An "O" identifies that the salary rate is Off-Scale. An "A" identifies that the salary rate is Above-Scale. If the faculty member's regular appointment is Off-Scale or Above-Scale, indicate an "O" or "A" accordingly Summer Policy Page 7

9 Attachment II EDB INSTRUCTIONS FOR ENTERING SUMMER QUARTER AND VACATION EMPLOYMENT ONLINE Choose the EAPP screen. EAPP Appointment and Distribution FIELD DATA INFORMATION Appointment The appointment number uniquely identifies an appointment and its Number associated data. Tab to the command line [====>] and enter add xx. The cursor is now positioned in the actions field. Actions This area is reserved for action codes that identify the activity or change of information that is occurring at the appointment level. Since this is additional employment, enter the action code 13. Pgm Data cannot be entered into this display only field. The Program code for all Academic Appointments is A. Type Enter the code 5. The Type code for all Academic Appointments is 5. Basis This is the number of months (either nine or eleven) that the appointee is expected to perform service. Enter 09 for an Academic Year appointment or enter 11 for a Fiscal Year appointment. Paid Over This is the number of months over which the appointee will receive salary. Salary for summer research is calculated over either a 9 month period or an 12 month period. Enter 09 for those receiving salary calculated on a 1/9th basis and 12 for those receiving on an 11-month basis for vacation research. EXAMPLE: 9/9 or 11/12. Appt Begin Date Appt End Date Dur Title Code Enter the effective date the summer research appointment will begin. Summer research generally begins on the first workday after the service ends for the Spring quarter. This is the last full day that pay or funding is active. Summer research appointments generally end on the last workday before the service for the Fall quarter begins. Do not enter any data in this field. This is a temporary appointment only. This is a four digit code. Use only those title codes that represent summer research. EXAMPLE: Assistant Professor/Assistant Research Associate Professor/Associate Research Professor/Research Grade Percent Full Time Do not enter any data in this field. Staff use only. Enter the percentage of time expected to be worked in the appointment. continued on next page Summer Policy Page 8

10 Fixed/ Variable Ann/Hr Rate Rate Schedule Time Enter an F if the appointment is fixed, and a V if time worked will vary. If funding/salary is from Sub 0 funds, only an F should be used. For salary using Sub 2, 5 or 7, an F or V is acceptable. DO NOT ENTER ANY DATA IN THIS FIELD. The system will derive this amount from the distribution line. This will be the full annual rate for the position regardless of the appointment percent of time. Enter an A. This is the code that identifies whether the amount indicated in the Annual/Hourly Rate field is to be paid monthly. This identifies the frequency of when pay is to be issued. Enter MO for monthly. An appointee can have only one pay schedule. Enter Z if salary is from Sub 2, 5 or 7. When Z is used, time will have to be entered online for positive time reporting in order for salary to be issued. Enter N. Leave is not accrued based on summer research. Leave Accrual Code Press <F2> to jump down to the [Next Function] field and then press the <New Line> key to get to the command line to enter the special command [ADD xx]. The cursor will then be positioned in the [Actions] field. Distribution Number Actions Location, Account, Cost Center, Fund, Project, Sub FTE Distribution % Pay Begin Pay End Step O/A Indicator The distribution number uniquely identifies a payroll distribution associated with an appointment. This area is reserved for action codes that identify or change the information that is occurring at the distribution level. This action is an additional employment, the recording of the action has already taken place by the selection of action code 13 which was entered at the appointment level; therefore no action code is required at this level. (1) Enter the number 4 which represents the UC campus location, Los Angeles. (2) Enter the six digit department account number. (3) Enter two digit alpha/numeric cost center code if applicable. (4) Enter five digit fund number. (5) Enter the code that has been set up to track a specific project. (6) Enter the sub account number. This will either be 0, 2, 5 or 7 for academic appointments reflecting summer research. DO NOT ENTER ANY DATA IN THIS FIELD. NOT USED AT UCLA. This is a five digit field containing four decimal places. Enter in the % of time the faculty member will be paid from the funding (i.e for 100% or.5000 for 50%). This action is an additional employment; the date should reflect the date the summer research will begin. Summer research generally begins on the first workday after the service for the Spring quarter ends. This is the last full day that pay or funding is active. Summer research appointments generally end on the last workday before the service for the Fall quarter begins. This field indicates the salary level within the rank. The step should agree with the faculty member's regular appointment. An O identifies that the salary rate is Off-Scale. An A identifies that the salary rate is Above-Scale. If the faculty member's regular appointment is Off-Scale or Above-Scale, indicate an O or A accordingly. continued on next page Summer Policy Page 9

11 Rate/Amount DOS All Academic Year rates (Regular, In-Residence, Acting, Visiting and Adjunct) are calculated by dividing the annual rate by 9 for the monthly rate. Lecturers and Demonstration Teachers who change to the Professional Research Series should use the Published Scale rates for the Research Series. All Fiscal Year Professorial rates are calculated by dividing the annual rate by 12 for the monthly rate. All faculty who are paid as Deans in the Senior Management Group titles for the current Academic Year are calculated by dividing the annual rate by 12 for the monthly rate. This is the Description of Service Code field. The most commonly used DOS codes for summer research are: ACA - Additional Compensation Administrative ACR - Additional Compensation Research AFR - 1/12th Vacation Research Press <F9> key to complete the action and update the record Summer Policy Page 10

12 Attachment III PAYROLL PROCESSING FOR SUMMER COMPENSATION Summer compensation is paid on the Monthly pay cycle and is included with the faculty member's regular salary. The pay schedule code to be used should be MO and the time code should be Z. The time code of Z will allow positive time reporting of summer ninths on the Time Input Roster. Time Input Rosters are available for online entry of time for approximately 10 days during the month. The Schedule for Updating the PPS online (available on the Payroll website at provides the dates that are applicable for each month. If an appointee s summer compensation distribution does not appear on the Time Input Roster, then EDB must be updated with the correct ACA or ACR appointment and distribution. If EDB is updated on or prior to the Last Day to Update EDB and Have the Change Appear on the Roster, the time for the summer ninth distribution may be entered on the roster the next day. Refer to the PTR User Guide, Section C2.0 for instructions on entering time on the Roster. If the appointment is added to EDB after the Last Day to Update EDB and Have the Change Appear on the Roster but prior to the pay compute for the current monthly payday, process an EDAP transaction for the ACA or ACR payment and schedule it for the current monthly payday. If the appointment is added to EDB after the Pay Compute for the current monthly payday, process an EDAP transaction for the ACA or ACR payment and schedule it for a future payday. Refer to the PTR User Guide, Section D, page D1.0 for general instructions on processing EDAT transactions and page D2.0 for specific instruction on processing EDAP transactions Summer Policy Page 11

13 University of California, Los Angeles ADDITIONAL COMPENSATION FOR FISCAL YEAR APPOINTEES All Fiscal Year Appointees may receive additional compensation of up to one-twelfth (1/12) of the annual salary for teaching, research, or service performed during vacation. This is effective for appointments made July 1, 2014 or later (see APM c). A corresponding number of accrued vacation days must be deducted. Please complete the information requested below and submit the completed form to Academic Personnel, 3109 Murphy Hall, APPOINTMENT INFORMATION Name: Title: ID# Dept: Dates of Service Period: Number of Vacation Hours Deducted: Monthly Payrate: Fund/Cost Center/Account/Project # (FAU): 2. JUSTIFICATION Please indicate the academic purpose served (i.e. research, special research projects). 3. CONTACT INFORMATION Contact Name Department/Unit Phone 4. APPROVALS Employee s Signature Date Chair s Authorization Date Dean s Authorization Date Vice Chancellor s Approval Date ACADEMIC PERSONNEL OFFICE ACTION APO 5/15

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