Supplemental Compensation Professional Development - PowerPoint Presentation

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Supplemental Compensation Professional Development

December 3, 2019

Supplemental Compensation Policies (3.1.4 and 3.2.11)

aka “Extra Pay”, “

Add’l Pay”, “Administrative Increment”, “Extra Service Compensation”, etc.

Outline

What

are the federal requirements for supplemental

compensation (“extra service compensation”)?

What was wrong with the old policy (policies)?

What changes under the new policy (policies)?

FAQs

Supplemental Compensation Policies (3.1.4 and 3.2.11)

What are the federal requirements for supplemental compensation?

Key Concepts

Grants salaries purchase employees’ time. They are not bonuses.

For exempt employees, maximum effort is 100%.

A base rate of pay must be established.A change in the base rate must be accompanied by a documented change in duties.

Supplemental Compensation Policies (3.1.4 and 3.2.11)

What are the federal requirements for supplemental compensation?

Federal

Requirements (2 CFR 200, Section 200.430)

Institutions required to define an

institutional base salary (IBS) Any

extra service compensation paid from federal awards must follow

a consistent institutional policy that applies to all sources of funding

Extra service compensation only allowed under certain conditions, including:

The institution establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards

The institution establishes a consistent written definition of work covered by IBS which is specific enough to determine conclusively when work beyond that level has occurredThe supplementation amount paid is commensurate with the IBS rate of pay and the additional work performedThe salaries, as supplemented, fall within the salary structure and pay ranges established by and documented in writingCharges for work performed on federal awards outside the academic year will be at a rate not in excess of the IBS, except for teaching activities that follow the normal written policy of the institution for faculty members on teaching assignment during that period

Federal

Requirements (2 CFR 200, Section 200.430)

Institutions required to

define an

institutional base salary

(IBS)

Any

extra service compensation paid from federal awards

must follow

a

consistent institutional policy that applies to all sources of

funding

Extra service compensation only allowed under certain conditions, including:

The institution establishes consistent written

policies which apply uniformly to all faculty members, not just those working on Federal awards

The institution establishes a

consistent written definition of work

covered by IBS which is

specific enough to determine conclusively when work beyond that level has occurred

The supplementation amount paid is commensurate with the IBS rate of pay and the additional work performed

The salaries, as supplemented, fall within the salary structure and pay ranges

established by and documented in writing

Charges for work performed on federal awards

outside the academic year will be at a rate not in excess of the IBS

, except for teaching activities that follow the normal written policy of the institution for faculty members on teaching assignment during that period

Supplemental Compensation

What was wrong with old policy?

3.2.11 Employment In Excess Of Full Time AppointmentWithout prior approval, no full time tenured faculty, probationary tenure track faculty, or administrative professional employee should be assigned any additional work for which additional payment will be received from University funds

.

Definition

Additional internal employment is assigned work for which payment will be received from University funds.  Funding from externally sponsored projects processed through the University as grants and contracts will be considered as University funds.FacultyFaculty do not usually receive compensation for services with the University in excess of the normal workload.  The maximum faculty teaching assignment during the regular academic semester involves 12 credit hours.  Adjustments are made to accommodate research projects, advising, (e.g., theses or dissertations), administration, service or other responsibilities.  Such adjustments must be approved by department chairs/school directors. (University Library faculty assignments are defined by the Library administration and include librarianship, scholarship and service.)3.2.11 Employment In Excess Of Full Time AppointmentWithout prior approval, no full time tenured faculty, probationary tenure track faculty, or administrative professional employee should be assigned any additional work for which additional payment will be received from University funds.

DefinitionAdditional internal employment is assigned work for which payment will be received from University funds.  Funding from externally sponsored projects processed through the University as grants and contracts will be considered as University funds.Faculty

Faculty do not usually receive compensation for services with the University in excess of the normal workload.  The maximum faculty teaching assignment during the regular academic semester involves 12 credit hours.  Adjustments are made to accommodate research projects, advising, (e.g., theses or dissertations), administration, service or other responsibilities

.

  Such adjustments must be approved by department chairs/school directors. (University Library faculty assignments are defined by

the Library administration and include librarianship, scholarship and service.)

Supplemental Compensation

What was wrong with old policy?

Chairperson/Administrative/ProfessionalA chairperson/school director's and an administrative professional employee’s workload during the fiscal year is the administratively assigned full time equivalent (FTE) of 100%. No chairperson/school director or administrative professional employee on a full time contract should be assigned additional internal employment for compensation without prior written approval from an immediate supervisor.

Special

Conditions: Buyout/Overload/ Extra Pay/Grant Administrative Increment

Buyouts, overloads, extra pay assignments and grant administrative increments require prior approval by the necessary Department/Unit Heads and Deans/Vice Presidents.  Extra pay or overload assignments by faculty will count against the allowable days for secondary employment.  See definition in policy 3.3.7-Secondary/Outside Employment.Chairperson/Administrative/ProfessionalA chairperson/school director's and an administrative professional employee’s workload during the fiscal year is the administratively assigned full time equivalent (FTE) of 100%. No chairperson/school director or administrative professional employee on a full time contract should be assigned additional internal employment for compensation without prior written approval from an immediate supervisor.Special Conditions: Buyout/Overload/ Extra Pay/Grant Administrative IncrementBuyouts, overloads, extra pay assignments and grant administrative increments require prior approval by the necessary Department/Unit Heads and Deans/Vice Presidents. 

Extra pay or overload assignments by faculty will count against the allowable days for secondary employment.  See definition in policy 3.3.7-Secondary/Outside Employment.

Supplemental Compensation

What was wrong with old policy?

Definitions:Buyout:

If activities associated with externally sponsored projects limit the ability of the employee to perform all of her/his assigned university duties and responsibilities, the additional employment will be handled by a purchasing of that employee’s time, referred to as a buyout.

Extra Pay:

Extra pay is provided for academic services rendered on an irregular or one-time basis; e.g., a special project, workshop, after school program, public service programs, or acting as a grant consultant, and applies to all tenured faculty, probationary tenure track faculty, and administrative professional employees.Grant Administrative Increment: With external funding, tenured faculty, probationary tenure track faculty, and administrative professional employees may receive up to 40-percent of their annual salary with approval of the Department/Unit Head and the Deans/Vice Presidents.  This increment must be listed in the grant budget as such and approved by the agency.Overload: Overload is defined as an extension of a tenured faculty, probationary tenure track faculty, and administrative professional employee’s primary responsibility with the assignment causing a workload that is in excess of the usual and customary duties.  In the case of faculty, overload includes teaching of credit-generating courses above and beyond their regular assignment for emergency or unusual circumstances.Definitions:

Buyout: If activities associated with externally sponsored projects limit the ability of the employee to perform all of her/his assigned university duties and responsibilities, the additional employment will be handled by a purchasing of that employee’s time, referred to as a buyout

.Extra Pay: Extra pay is provided for academic services rendered on an irregular or one-time basis; e.g., a special project, workshop, after school program, public service programs, or acting as a grant consultant, and applies to all tenured faculty, probationary tenure track faculty, and administrative professional employees.

Grant Administrative Increment:

With external funding

, tenured faculty, probationary tenure track faculty, and administrative professional employees may receive up to 40-percent of their annual salary with approval of the Department/Unit Head and the Deans/Vice Presidents.  This increment must be listed in the grant budget as such and approved by the agency.Overload: Overload is defined as an extension of a tenured faculty, probationary tenure track faculty, and administrative professional employee’s primary responsibility with the assignment causing a workload that is in excess of the usual and customary duties.  In the case of faculty, overload includes teaching of credit-generating courses above and beyond their regular assignment for emergency or unusual circumstances.

Supplemental Compensation

What was wrong with old policy?

Concerns Regarding Former Policy

An institutional base salary (IBS) is not defined.

Policy 3.2.11 allows for the payment of extra compensation (up to 40% of salary) based solely upon the availability of grant funding

Summer pay is essentially unlimited

In some

areas, extra pay (rather than buyout) is

used

for

faculty paid from grants

Defines IBS and other relevant terms such as buyout, acting/interim compensation, etc.

Sets an employee’s IBS to the regular monthly salary (including income from formal but temporary assignments, e.g. Interim Chair, Acting Dean)

Limits extra service compensation to 25% above IBS for the period that a salaried employee is on contract

Limits summer compensation from all University sources to the same rate as the IBS.

Requires the employee’s supervisor to certify

that for extra service compensation:

the

duties are beyond

(not instead of) the

regular job

duties; the duties do not affect the performance of the regular job duties; and the compensation is not awarded solely because of the availability of external fundingSupplemental Compensation Policies (3.1.4 and 3.2.11)What changes under the new policy?

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

BUYOUT

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

BUYOUT

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

Supplemental Compensation Policies (3.1.4 and 3.2.11)

Scenarios

Why is ISU limiting how much a faculty member can make

?

The policy does nothing to limit base pay

ISU did not create the regulations

Similar policies are the norm at other universities

Why

the 25% limitation

?Many universities have a 20% limit (some allow no additional pay)

After discussions with HR, limit was set at 25% to so that a one-course overload does not violate the policy

How does an acting/interim appointment affect IBS?

An appointment under Policy 3.1.4 changes the IBS to the new amountWhat can I do about a faculty member has a large grant (e.g. $1M+) that requires substantial administrative responsibilities exceeding those of faculty with smaller grants?A buyout is preferred, but the faculty may be eligible for an appointment under policy 3.1.4 if teaching/research/service duties cannot be adequately reassignedWhen will the new policy be enforced?July 1, 2020

Supplemental Compensation Policies (3.1.4 and 3.2.11)

FAQs

Questions/Concerns

Tammy Carlson, Human Resources

Melanie

Fata,

Human Resources

Colette Homan, Human ResourcesDerek Story, Human ResourcesDoug Schnittker, Comptroller’s Office

John Baur, Provost’s Office

Sam Catanzaro, Provost’s Office

Jason Wagoner, Research & Sponsored Programs

Alice Maginnis, General Counsel’s Office

 Working Group