The ABCs of XYZ. Monica Gudea Director, Faculty Affairs & Compensation April 26, 2018
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1 The ABCs of XYZ Monica Gudea Director, Faculty Affairs & Compensation April 26, 2018
2 Agenda Health Sciences Compensation Plan Department Compensation Plans The ABCs of XYZ Covered Compensation Academic Programmatic Units (APUs) Health Sciences Faculty Salary Scales UC/VA Split Appointments Resources
3 Health Sciences Compensation Plan (HSCP) Mandated by the UC Office of the President (UCOP) The HSCP - formally known as APM informally the comp plan First implemented in July 2002, revised July 2012 VCHS has implementation guidelines, departments provide the details 2013 UC San Diego HSCP Implementation Guidelines on the VCHS Faculty Compensation website:
4 Department Compensation Plans Each department has Department Compensation Plan Procedures All faculty should review terms and conditions Department Compensation Plans cover: Good Standing Criteria Faculty compensation Salary sources Outside professional activities Academic Programmatic Units (APUs) FTE salary savings Leaves of absence Bonus plan participation Check with department business officer for department specific questions
5 HSCP - Membership Participation is mandatory for faculty with an appointment > 50% a salaried professorial series Adjunct, Clinical X, HS Clinical, In Residence, Ladder Rank Faculty participating in the HSCP: Receive base salary Eligible for optional university additional compensation Permitted to retain other miscellaneous income Entitled to leave benefits (paid and unpaid) Non faculty academics not eligible for HSCP membership post-docs, project scientists, research scientists, specialists, academic coordinators/administrators
6 A Confusing Introduction to XYZ The Proposal Letter The salary structure at UCSD is based on X, X, Y, Y, and Z components, where X represents the base salary of the academic rate for the University of California. All of your salary will be supported by non-state funds (for example: clinical income, teaching and/or contracts and grants). You may have an opportunity to earn incentive (Z) pay in addition to your annual salary, based upon your ability to reach performance targets mutually agreed upon by the Department. Please note that Y and Z pay components are not recognized in the University s retirement benefit calculations. Each year faculty meet with their Division Chief and/or Department Chair to negotiate salaries for the next fiscal year, which presents an opportunity to discuss an increase in salary.
7 The ABCs of XYZ Base Pay Negotiated Component Incentive Pay X + X + Y + Y + Z = Covered Comp Total Negotiated Salary
8 Covered Compensation Salary Structure X, X, Y = covered compensation Y, Z = uncovered compensation Why is covered compensation important? Used for retirement calculations (up to the amount permissible under Internal Revenue Code provisions & UCRP policy) Per IRC 401(a)(17) for 2018, the earnings limit is $275,000. For those who were active members before 7/1/93, earnings limit for 2017 is $405,000 Highest Average Plan Compensation (HAPC) = the average full-time compensation over an employee s 36 highest continuous months of pay Used for benefits calculations UC life insurance UC disability insurance
9 Academic Programmatic Units (APUs) All HSCP faculty are assigned to an APU based on academic / programmatic focus Defined by responsibilities: teaching, research, clinical, and/or administrative The APU determines the covered compensation / salary scale for the members Placement on the scale is determined by characteristics of the group (e.g. type of activity, potential for income) APU Scale Base Multiplier APU Base Multiplier * Base Salary = Covered Compensation
10 Health Sciences Faculty Salary Scales Off scale: Covered compensation falls between the steps Above scale: distinguished professors who have advanced past step IX
11 Academic Programmatic Units (APUs) A group of 5 or more faculty members whose activities are programmatically similar All members of the APU must be able to sustain the scale pay assigned Cannot discriminate based on age or funding No individual faculty member may be moved from one APU to another without a significant change in duties or a change in department Faculty should never be placed in an APU solely to boost retirement pay Entire APU rises or falls in scale pay together No APU scale pay changes mid-year SOM has over 100 APUs creation of new APUs is frozen
12 The ABCs of XYZ Total covered compensation X + X + Y + Y + Z = Total Income Total negotiated salary X X & Y Y Z Base salary Determined by rank & step Listed on offer letters, merit/promotion letters Recognized for retirement covered compensation Additional covered compensation Determined by APU Amount of covered compensation above X base salary Recognized for retirement covered compensation Additional negotiated compensation Based upon the availability of funds Negotiated & guaranteed annually No cap Not recognized for retirement Incentive/bonus Not guaranteed, not recognized for retirement Based on productivity standards and revenue generated from consulting, clinical productivity, outside professional activity
13 Faculty Salary Components Example John Smith, MD Total covered compensation X + X + Y + Y + Z = Total Income Total negotiated salary Associate Professor in Residence, Step 2 Clinical Dermatologist = APU/Scale 3 Total negotiated annual salary of $134,000 Additional $10,000/year serving as department residency director $91,700 [ X ] (X base salary for associate professor step 2, covered compensation) $27,600 [ X ] (Scale 3, expansion of base salary, covered compensation) $119,300 = Total Covered Compensation + $14,700 [ Y ] (Negotiated salary, not included in covered compensation) $134,000 = Total Negotiated Annual Salary + $10,000 [ Z ] (Administrative incentive - department residency director) $144,000 = Total Income
14 Sample Faculty Paycheck Total negotiated salary (monthly) Additional Pay types for Agency/NIH Cap & Cap Gap: X: A C X/BS/REG, B/A-X/BSE AS X : B/A-XP/BS AS, C X/BASE PRI Y :A C/Y-PRM, HSDIFF-BYA Y: B/A-YDIF AS, Y/DIFF A CAP 14
15 15
16 UC/VA Split Appointments VA & UC San Diego are separate legal entities and pay masters UC San Diego faculty working at the VA are paid through the VA payroll system for their VA compensation VA provides benefits based upon eligibility for time worked at VA only VA employees work 8ths and UCSD employees work a % time 8/8ths at the VA = 100% time 4/8ths at the VA = 50% time For information about VA compensation, contact VA Human Resources
17 UC/VA Split Appointments The maximum allowable appointment at UC is based on a 60 hour work week of combined hours at both UC & VA VA considers full-time to be 40 hours per week (8/8ths) UC considers full-time to be 40 hours per week (100%) Maximum allowable appointment: 8/8ths at VA = 40 hours 5/8ths at VA = 25 hours 50% at UC = 20 hours 87% at UC = 35 hours Total 60 hours Total 60 hours
18 UC/VA Split Appointments Note: Faculty are not guaranteed the maximum appointment percentage. UC appointment percentage is dependent on the amount of UC pay as a percent of X.
19 Resources for Additional Information Health Sciences Faculty Compensation Website: Academic Personnel Manual (APM): University of California Benefits Website: UC Retirement Administration Service Center (RASC) Website: Compensation experts: Monica Gudea Han Ho Angelica Mangindin & ARC-CT Staff
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