The Basics of Faculty Compensation. Angelica Mangindin Director, VCHS Faculty Compensation March 25, 2015

Transcription

1 The Basics of Faculty Compensation Angelica Mangindin Director, VCHS Faculty Compensation March 25, 2015

2 Agenda Health Sciences Compensation Plan Department Compensation Plans Academic Programmatic Units (APUs) The ABC s of the XYZ s Covered Compensation Health Sciences Faculty Salary Scales Outside Professional Income UC/VA Split Appointments Resources

3 Agenda Health Sciences Compensation Plan Department Compensation Plans Academic Programmatic Units (APUs) The ABC s of the XYZ s Covered Compensation Health Sciences Faculty Salary Scales Outside Professional Income UC/VA Split Appointments Resources

4 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:

5 HSCP - Membership Faculty participation mandatory With an appointment > 50% In salaried professorial series titles (Adjunct, Clinical X, HS Clinical, In-Residence, Ladder Rank) Non-faculty academics not eligible for HSCP membership Post-docs, project scientists, research scientists, specialists, academic coordinators/administrators Chancellor has authority to review and approve exceptions

6 HSCP - Membership Faculty participating in the HSCP: Receive base salary Eligible for optional University additional compensation Be permitted to retain other miscellaneous income

7 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 and/or academic personnel managers for department specific questions

8 Faculty Salary: Rank, Step, Series Rank Step Series Assistant Professor Associate Professor (Full) Professor Assistant: 1 thru 6 Associate: 1 thru 5 Professor: 1 thru 9 & Above Scale Ladder Rank (FTE) In Residence Clinical X HS Clinical Adjunct Rank + Step + APU determine placement on the salary scale Series does not affect placement on salary scale

9 Academic Programmatic Units (APUs) A group of 5 or more faculty members whose activities are programmatically similar. The characteristics of the group (type of activity, potential for income, etc.) are used to determine the base salary scale. All members of an APU share the same salary scale. Defined by responsibilities: teaching, research, clinical, and/or administrative All UC San Diego Health Sciences faculty are assigned to an APU by department based on academic / programmatic focus Cannot discriminate based on age or funding All members of the APU must be able to sustain the scale pay assigned No APU scale pay changes mid-year Entire APU rises or falls in scale pay together Faculty should never be placed in an APU solely to boost retirement pay (pension spiking) If significant change in duties or change in department, can move to another APU SOM has 100 APUs At this time, no new APUs may be formed per Dean Brenner

10 Compensation - The ABC s of the XYZ s X = Base Salary (Scale 0) represents the minimum salary rate for a faculty member Recognized for retirement covered compensation Listed on offer letters, RATs

11 Compensation - The ABC s of the XYZ s X = Base Salary (Scale 0) represents the minimum salary rate for a faculty member Recognized for retirement covered compensation Listed on offer letters, RATs X = Expansion of base salary - amount of salary above X base (Scale 1 thru 3) Recognized for retirement covered compensation Differential between X (Scale 0) and the faculty member s rank and step relative to their APU

12 Compensation - The ABC s of the XYZ s X = Base Salary (Scale 0) represents the minimum salary rate for a faculty member Recognized for retirement covered compensation Listed on offer letters, RATs X = Expansion of base salary - amount of salary above X base (Scale 1 thru 3) Recognized for retirement covered compensation Differential between X (Scale 0) and the faculty member s rank and step relative to their APU Y = Additional compensation (Scale 4 thru 9) Recognized for retirement covered compensation Note APM 670 refers to this as X but the calculation is the same

13 Compensation - The ABC s of the XYZ s X = Base Salary (Scale 0) represents the minimum salary rate for a faculty member Recognized for retirement covered compensation Listed on offer letters, RATs X = Expansion of base salary - amount of salary above X base (Scale 1 thru 3) Recognized for retirement covered compensation Differential between X (Scale 0) and the faculty member s rank and step relative to their APU Y = Additional compensation (Scale 4 thru 9) Recognized for retirement covered compensation Note APM 670 refers to this as X but the calculation is the same Y = Additional negotiated compensation Negotiated & guaranteed annually, not recognized for retirement Midyear renegotiation of Y rarely permitted, requires Dean s approval Based upon such factors as the quality, scope, and volume of teaching, research, clinical and administrative activities, as well as the availability of a reliable source(s) of income No cap

14 Compensation - The ABC s of the XYZ s X = Base Salary (Scale 0) represents the minimum salary rate for a faculty member Recognized for retirement covered compensation Listed on offer letters, RATs X = Expansion of base salary - amount of salary above X base (Scale 1 thru 3) Recognized for retirement covered compensation Differential between X (Scale 0) and the faculty member s rank and step relative to their APU Y = Additional compensation (Scale 4 thru 9) Recognized for retirement covered compensation Note APM 670 refers to this as X but the calculation is the same Y = Additional negotiated compensation Negotiated & guaranteed annually, not recognized for retirement Midyear renegotiation of Y rarely permitted, requires Dean s approval Based upon such factors as the quality, scope, and volume of teaching, research, clinical and administrative activities, as well as the availability of a reliable source(s) of income No cap Z = Incentive/bonus/outside consulting earned compensation Not guaranteed, not recognized for retirement Based on productivity standards and revenue generated from consulting, clinical productivity, outside professional activity

15 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 plan year 2015, the earnings limit is $265,000. For those who were active members before 7/1/93, earnings limit for 2015 is $395,000 Highest Average Plan Compensation (HAPC) = the average full-time equivalent compensation over an employee s 36 highest continuous months of pay Used for benefits calculations UC life insurance UC disability insurance

16 Health Sciences Faculty Salary Scales UCSD Scales Health Sciences Faculty Salary Scales 3% Range Adjusted, effective 7/1/14 Health Sciences Compensation Plan (HSCP) X X + X' X + X' X + X' X + X' + Y' X + X' + Y' X + X' + Y' X + X' + Y' X + X' + Y' X + X' + Y' Scale 0 Scale 1 Scale 2 Scale 3 Scale 4 Scale 5 Scale 6 Scale 7 Scale 8 Scale Rank Step Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Instructor 57,600 4, ,400 5, $69,100 5, $74,900 6, $80,600 6, $86,400 7, $95,000 7, $103,700 8, $115,200 9, $129,600 10, Asst Prof I 66,800 5, ,500 6, $80,200 6, $86,800 7, $93,500 7, $100,200 8, $110,200 9, $120,200 10, $133,600 11, $150,300 12, II 70,800 5, ,900 6, $85,000 7, $92,000 7, $99,100 8, $106,200 8, $116,800 9, $127,400 10, $141,600 11, $159,300 13, III 74,700 6, ,200 6, $89,600 7, $97,100 8, $104,600 8, $112,100 9, $123,300 10, $134,500 11, $149,400 12, $168,100 14, IV 79,000 6, ,900 7, $94,800 7, $102,700 8, $110,600 9, $118,500 9, $130,400 10, $142,200 11, $158,000 13, $177,800 14, V 82,900 6, ,200 7, $99,500 8, $107,800 8, $116,100 9, $124,400 10, $136,800 11, $149,200 12, $165,800 13, $186,500 15, VI 86,900 7, ,600 7, $104,300 8, $113,000 9, $121,700 10, $130,400 10, $143,400 11, $156,400 13, $173,800 14, $195,500 16, Assoc Prof I 83,000 6, ,300 7, $99,600 8, $107,900 8, $116,200 9, $124,500 10, $137,000 11, $149,400 12, $166,000 13, $186,800 15, II 87,000 7, ,700 7, $104,400 8, $113,100 9, $121,800 10, $130,500 10, $143,600 11, $156,600 13, $174,000 14, $195,800 16, III 91,800 7, ,000 8, $110,200 9, $119,300 9, $128,500 10, $137,700 11, $151,500 12, $165,200 13, $183,600 15, $206,600 17, IV 97,500 8, ,300 8, $117,000 9, $126,800 10, $136,500 11, $146,300 12, $160,900 13, $175,500 14, $195,000 16, $219,400 18, V 105,100 8, ,600 9, $126,100 10, $136,600 11, $147,100 12, $157,700 13, $173,400 14, $189,200 15, $210,200 17, $236,500 19, Professor I 97,600 8, ,400 8, $117,100 9, $126,900 10, $136,600 11, $146,400 12, $161,000 13, $175,700 14, $195,200 16, $219,600 18, II 105,200 8, ,700 9, $126,200 10, $136,800 11, $147,300 12, $157,800 13, $173,600 14, $189,400 15, $210,400 17, $236,700 19, III 112,800 9, ,100 10, $135,400 11, $146,600 12, $157,900 13, $169,200 14, $186,100 15, $203,000 16, $225,600 18, $253,800 21, IV 121,000 10, ,100 11, $145,200 12, $157,300 13, $169,400 14, $181,500 15, $199,700 16, $217,800 18, $242,000 20, $272,300 22, V 129,700 10, ,700 11, $155,600 12, $168,600 14, $181,600 15, $194,600 16, $214,000 17, $233,500 19, $259,400 21, $291,800 24, VI 140,400 11, ,400 12, $168,500 14, $182,500 15, $196,600 16, $210,600 17, $231,700 19, $252,700 21, $280,800 23, $315,900 26, VII 151,900 12, ,100 13, $182,300 15, $197,500 16, $212,700 17, $227,900 18, $250,600 20, $273,400 22, $303,800 25, $341,800 28, VIII 164,500 13, ,000 15, $197,400 16, $213,900 17, $230,300 19, $246,800 20, $271,400 22, $296,100 24, $329,000 27, $370,100 30, IX 178,200 14, ,000 16, $213,800 17, $231,700 19, $249,500 20, $267,300 22, $294,000 24, $320,800 26, $356,400 29, $401,000 33, Off-scale Covered compensation falls between the steps Above-scale X, or base pay (Scale 0), exceeds Prof, Step IX

17 Sample New Faculty Hire Salary Components Jo Smith, MD Associate Professor in Residence, Step 2 Cardiologist = Scale 3 Total negotiated annual salary of $200,000 Additional $10,000/year serving as department residency director $87,000 [ X ] (X base salary at Associate Professor Step 2, covered compensation) $26,100 [ X ] (Scale 3, expansion of base salary, covered compensation) $113,100 = Total Covered Compensation + $86,900 [ Y ] (Negotiated salary, not included in covered compensation) $200,000 = Total Negotiated Annual Salary + $10,000 [ Z ] (Administrative incentive - Department residency director) $210,000 = Total Income

18 Compensation Funding Sources State funds may not be used for any component of compensation beyond Scale 0 or X Compensation above Scale 0 or X must be funded from non-state funds or a combination of: Clinical revenue Federal funds Contract and grant revenue Departmental funds

19 What Causes Changes to Total Salary? Changes to the X May or may not change total negotiated salary Examples: Cost of Living Adjustments (COLAs) Advancement because X is based on rank/step Changes to the Y negotiated portion Will impact total negotiated salary rate Example: Annual renegotiation process Note: Can be a positive or negative change Salary negotiated annually each fiscal year with chair/division chief Merit or promotion not necessarily cause for increase in TNS

20 Outside Professional Income In order to earn outside professional income faculty must meet Good Standing criteria established by the department The number of days devoted to outside professional income cannot exceed 48 days per fiscal year. Limitation on the amount of income that can be directly retained: $40,000 or 20% of the Health Sciences Faculty Salary Scale pay (covered compensation) whichever is greater APM 025

21 Outside Profession Income - APM 671 Effective July 1, 2015 Increased threshold on outside professional income New threshold: $40,000 or 40% of Scale 0 salary, whichever is greater

22 OP-Mandated Changes in APM 671 The University s general and professional liability and workers compensation coverage does not extend to faculty who conduct activities that are outside the course and scope of the faculty member s University employment. Faculty who engage in professional activities that are outside the course and scope of their University employment are encouraged to obtain outside legal consultation and consider obtaining personal liability insurance.

23 Outside Professional Income Some outside professional income may be directly retained: Prizes Royalties Honoraria (as permitted by APM 666) Stipends Income from unrelated activity Income from a profession or activity unrelated to the training or experience that represents the faculty member s qualifications for UC appointment.

24 Outside Professional Income Certain outside activities (Category I) require PRIOR approval from Department Chair and Associate Vice Chancellor of Academic Affairs Examples: Assuming executive or managerial position in a for-profit or not-for-profit business Administrating a grant outside the University Serving as a salaried employee outside the University Engaging in other compensated outside professional activities which common sense and good judgment would indicate are likely to raise issues of conflict of commitment To request approval for Category I outside activity, forms available on the VCHS Academic Affairs website

25 Outside Professional Income Income derived from patient care MUST be deposited to the HSCP and be paid to the faculty member through UC s payroll system. Annual Outside Activity Report Each faculty member provides the department with an annual report describing the previous year s outside professional activities Discuss with your chair and department business officer

26 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

27 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

28 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.

29 Academic Resource Center (ARC) Compensation & Timekeeping Unit Departments in Compensation & Timekeeping Unit Dermatology Family Medicine and Public Health Medicine Neurosciences Ophthalmology Orthopaedic Surgery Pathology Pediatrics Psychiatry Radiation Medicine and Applied Sciences Radiology Reproductive Medicine Surgery ARC

30 30 ARC Compensation & Timekeeping Contacts by Departments

31 ARC Compensation & Timekeeping Unit Staff Please send any compensation & timekeeping related s to 31

32 Resources for Additional Information Your Department Business Officer, Academic Personnel Specialist, Fund Manager or HR Contact Health Sciences Faculty Compensation Website: VCHS Academic Affairs Website: Academic Personnel Manual (APM): University of California Benefits Website: UC Retirement Administration Service Center (RASC) Phone: