APP 9-50: Summer Compensation General Guidelines

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A. Definition of Summer Additional Compensation

Additional compensation is defined as any compensation, other than an administrative stipend, paid to an appointee by the University in excess of the appointee’s full-time salary (APM 661). Faculty may receive summer additional compensation — or “summer salary” — for employment during the summer service period (in the case of academic-year appointees) or during the vacation period (in the case of fiscal-year appointees).

B. Eligibility

Eligibility for additional compensation is restricted to certain titles: in brief, these are titles in the several professorial series not eligible for the medical school compensation plans, a few other academic-year teaching titles, and certain administrators who also hold eligible appointments (e.g., Assistant or Associate Deans, and Directors of Organized Research Units).

Further, eligibility to earn summer salary at the one-ninth rate is restricted to faculty in Professorial and Lecturer SOE titles who are paid on an academic-year (9-month) basis. These faculty may earn a maximum of three-ninths, or one-third of their nine-month annual salary rate, as additional compensation.

C. Salary Rate and Pay Basis

Summer additional compensation is computed using an annual rate equivalent to the appointee’s regular annual base salary. The monthly rate will differ depending on the faculty member’s primary title and pay basis.

Academic-Year Appointees

Faculty who are appointed on academic-year titles are paid on a 9/12 basis. This means that they are paid over twelve months for service performed over nine months (Fall, Winter, and Spring quarters). The summer service period, which begins after the last working day of Spring quarter and ends prior to the first working day of Fall quarter, is available for earning summer salary.

The three month “summer quarter” is considered to be 57 days long, which is similar to the number of service days in each of the other three quarters. Additional calendar days (exceeding 57) in the summer service period are considered “intercession periods” during which an appointee is expected to perform duties as necessary to fulfill commitments to the University and to sponsoring agencies. No additional compensation is allowed during intercession periods.

Each month of the “summer quarter” is equal to 19 days or 1/3rd of the total 57 day service period. Each 19-day service period worked is compensated by one month’s salary using the 1/9th salary rate. (Payment for an academic-year appointee hired on a quarterly basis is computed using the 1/9th salary rate and title code. This is the same for the summer service period.) Three payments at the 1/9th rate is equivalent to one quarter of salary for the appointee. The maximum amount of salary for the summer service may not exceed a total of 3/9ths of the appointee’s regular annual rate.

Each month of summer service is computed and paid as follows:

Time in ServiceTotal EarningsDays Worked
1 month summer service1/9th of annual rate19 days
2 months summer service2/9th of annual rate38 days
3 months summer service3/9th of annual rate57 days

Refer to APP 9-51, Summer Salary — Appointments and Salary Calculations “Academic Year Faculty” sections for detailed procedures on how to calculate summer payments for academic-year appointees.

Fiscal Year Appointees

Faculty who are appointed on fiscal-year titles are paid on an 11/12 basis, which allows for one month of vacation. By exception, these appointees may earn additional compensation during their vacation period in the summer. Depending on the appointee’s title, the summer salary will be calculated either at a 1/11th or 1/12th monthly rate of the appointee’s annual salary and paid over one calendar month. The maximum amount of compensation for these appointees is one additional calendar month of employment.

Refer to APP 9-51, Summer Salary — Appointments and Salary Calculations “Fiscal Year Faculty” sections for detailed procedures on how to calculate summer payments for fiscal-year appointees.

Summary

The following table defines eligibility by academic title and summaries appropriate pay basis and salary rate for different types of summer appointments. For more specific appointment guidelines refer to APP 9-51, Summer Salary — Appointments and Salary Calculations.

Eligible TitlesPay Basis and
All Professorial and Lecturer SOE Series- Academic- Year (includes Ladder Ranks, In-Residence, Adjunct, Acting, Lecturer PSOE, Lecturer SOE):

Employee is required to hold an academic- year appointment in an eligible title for the current academic year.
For research appointments:
1/9th rate of annual salary, maximum cannot exceed 3/9ths of annual salary, with approval.

For administrative appointments (e.g., department or program chairs,etc.)
1/9th of annual salary, maximum cannot exceed 2/9ths for administrative work. (An additional 1/9th on extramural funding is allowed with approval.)
Other Academic-Year Appointees
(includes Lecturers):

Employee is required to hold an academic-year appointment in an eligible title for the current academic year.
For research appointments:
Appoint to appropriate research title to pay at 1/12th of annual salary (total earnings not to exceed a maximum 3/9ths of annual salary with approval). Payment is calculated on a calendar-month basis.

For administrative appointments:
1/12th of annual salary, maximum cannot exceed two months for administrative work. (Total earnings may not exceed 3/9ths of annual salary with approval.) Payment is calculated on a calendar-month basis.
All Fiscal-Year Administrators who are paid on 9/11 split pay basis:

Employee is required to hold a fiscal-year appointment in the current academic year to qualify for 1/11th.
For research appointments:
1/11th of fiscal-year salary. Payment is in lieu of vacation and is calculated on a calendar-month basis. (The additional 1/11th must come from extramural funding and have prior approval.)
D. Limitations

The amount of salary earned as summer additional compensation is limited according to the type of regular appointment held by an eligible faculty member. Summer additional compensation for academic-year (9-month) appointees may not exceed 3/9ths of the annual base salary from all sources, including Summer Sessions teaching. Summer additional compensation for eligible fiscal-year appointees may not exceed 1/11th of the annual base salary. Summer additional compensation is computed and paid at a rate equivalent to the appointee’s regular annual base salary.

Summer employment supported by extramural funds is limited in each case by the terms of the supporting contract or grant and in accordance with granting agency policy. Employing units or principal investigators bear responsibility for determining that the proposed summer employment is in compliance with contract or grant terms and that appropriate approvals are secured in advance of service.

Faculty who work on federal grants or contracts may be subject to salary caps on compensation which are imposed by granting agencies. If applicable, these salary caps supersede University regulations. For information on current salary caps, please refer to Appendix I, Salary Caps.

Summer Sessions

Appointees employed 100 percent of full time in Summer Sessions are not eligible for additional employment during the period(s) of Summer Sessions service (Session I and/or II). If an appointment in Summer Sessions is in addition to other summer employment, the total salary for all appointments combined may not exceed a total of 100 percent of full time nor the maximum of 3/9ths or 1/11th of the annual base salary. For fiscal-year appointees, payment is in lieu of vacation.

E. Faculty on Leaves of Absence

It is assumed that any individual employed on extramural funds will not be absent from the site of the research program for vacation or other purposes during the period for which summer additional compensation is to be paid, except for periods of approved leaves of absence.

Leave approvals

If the sponsoring agency has given permission for a leave and it is less than seven calendar days, follow the departmental procedures for notifying the chair. If the absence is longer than seven calendar days, a Leave of Absence Form (UCI-AP-76) should be prepared by the department and forwarded for appropriate approvals. (See APP 7-17, Other Leaves with Pay, for further information.)

Online PPS Entry/Update Note

Occasionally an academic who has received prior approval to be on a Special Leave of Absence without salary will want to earn summer additional compensation during the summer. Refer to the Payroll/Personnel Online System Procedures manual, Section 7-2, Leave With Pay, for detailed information on PPS entry/update for this type of transaction.

F. Approval Authority

Approval of summer additional compensation, including payment of a third month (3/9ths) of salary, has been delegated to Deans as long as it conforms to the regulations set out in APM 600-14 and APM 600, Appendix I, as well as the guidelines in this section of the APP. Any exception to University policy requires approval of the Executive Vice Chancellor and Provost.

For academic appointees on fiscal-year (12-month) appointments, approval to work the twelfth month (i.e., work in lieu of vacation) must be obtained from the Dean, and equivalent vacation must be used and reported.

Appendix I: Salary Caps (Updated: 5/1/2017)

Salary Caps
Department of Health and Human Services (DHHS)

[includes NIH, HRSA, AHRQ, CDC, CMS, SAMSA and other agencies]
Faculty salaries charged to the above funding sources are subject to the following salary cap for 100 percent effort. Supplementation of DHHS capped salaries may be made only from available non-federal or non-state funding sources.

The current salary cap is set at the Executive Level II ($187,000) for awards issued on or after January 8, 2017:

  1. The annual rate is $187,000.
  2. The monthly rate is $15,583.33.*
  3. Please note that the above monthly capped rate applies to fiscal year salaries and/or to calculation of additional compensation for academic year appointees paid summer salary at a 1/9th rate.
  4. If applying the DHHS salary cap to a 9–month academic year salary paid over 12 months (09/12) during the academic year (July-June), please refer to: Funding Agency Salary Caps on the AP website.
NOTE: If in doubt as to which salary cap applies to a specific DHHS fund source, please contact the Contracts and Grants Officer assigned to your department.

For faculty who’s 1/9th, 1/11th/ or 1/12th summer additional compensation rate exceeds the appropriate monthly capped rate, and who have available funding to supplement their salaries, prepare the Employee Data Gathering Worksheet as follows:

  1. Calculate the difference between the faculty member’s summer additional compensation pay rate and the capped rate ($15,583.33). That difference is the amount of the supplement.
  2. Set up a new appointment using Title Code 3998, “Salary Supplementation” for the same dates (See Caution Section below) as the research appointment. This is a “by-agreement” type payment, so enter an “F” in the fixed/variable field. The Rate, Pay Schedule, Time and Leave Code should be entered with the values of B-MO-R-N.
  3. Using the Daily Time Factors sheet (APP 9-51: Appendix III), calculate the amount of each month’s supplement as follows:
    Amount of Differential (Additional Compensation Rate Minus Capped Rate–$15,583.33)
    X
    Daily Rate Factor (Number of Days Worked)
    =
    Amount of Monthly Supplement
  4. Set up a separate distribution line for each month of supplemented summer additional compensation. Enter the amount of the supplement in the Pay Period/Rate Amount field. Enter the total of all the “by-agreement” amounts in the Annual Salary field. Since this is a “by-agreement” type of compensation, the Percent Time field is blank. The Description of Service Code is AAC (Addl Smr Comp-Res-Abv Cap).
CAUTION: In order to pay an employee accurately, any salary supplementation appointments must be set up for an entire calendar month. Enter the appropriate Begin Date and End Date for the month on the appointment and distribution lines (e.g., 09/01/17-09/30/17). Enter the exact dates of service in the Comments field of the IDOC (e.g., “For service from 09/01/17-09/16/17”). If partial months are entered on appointment or distribution lines, the Payroll/Personnel System will reduce the proposed “by-agreement” supplement to a lesser amount and the faculty member will not be accurately compensated. (See APP Section 9-52, Appendix I, Exhibit G)

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