1. Additional Compensation workshop

2. Agenda Changes in methodology Academic year additional comp Summer Session pay Summer research pay Strategies and best practices Other updates Summer 2013 dates Current NIH cap UCPath future implications

3. Context for changes NSF audit UCPath Transition of pay schedules to MO and BW only

4. Additional Compensation during the Academic Year Types: University Extension teaching Faculty consultant services Housing allowance Administrative stipends All appointments set up on a monthly (MO) pay basis. Payments can be made on the BW pay date if done via an LX transaction.

5. Summer Session payments One payment per session worked Will be paid on the MO pay date

6. Summer research payments All summer research compensation to be paid using 19 day methodology Basis for the 19 day method Allows consistency in effort reporting Can pay 3/9 ths from 19900 in the first summer June compensation to be paid at the June (pre- merited) rate All paid on MO pay schedule

7. Flat rate summer research payments Recruitment and Retention commitments May be paid out over multiple summers. Can be awarded in terms of 1/9ths or flat amount but always paid on percentage basis. Use 19 day chart with modification to percent of time to get dollars to be paid Same methodology used if needing percentages that don’t fall on the chart Example: pay $5,000 in summer salary to a faculty member with a 1/9 th rate of $8,000.

8. Flat rate payment: EAPP

9. Flat rate payment: comments

10. Flat rate; time reporting

11. Strategies and Best Practices Coordination when multiple departments are involved Record keeping Documentation of faculty requests and retro changes Pay should as closely as possible reflect the actual service period and effort Requests in days vs. percentage of the period If in days, use the actual days If in percentage, can either break into days or divide over the 19 day period; i.e. 50% of 1/9 th, 50% of 19 days or a percentage of 10 days

12. 50% over 19 days

13. 50% of the 19 days

14. Strategies and Best Practices Make sure your documentation is clear: If the faculty member requests “one month” do they mean “a calendar month” or “19 days for 1/9 th effort?” Document “interpreting” done by the department Understand the “day limits”; 57 days per summer (38 days for NSF) Not 19 days per month; i.e. can work more than 19 days in a month Advise faculty to consult with their tax advisor if they are concerned about the withholding amounts over the summer

15. “1/9ths” after retirement or resignation Can’t pay as additional compensation after separation or retirement date For emeriti faculty: Appointment as Research Professor Convert annual salary to 11/12 rate Pay as REG pay, up to 43% after a one-month break For faculty who resign: Appoint as a Researcher Convert annual salary to 11/12 rate Pay as REG pay up to 100% with no date limitations

16. Available Dates for 2013 Additional Compensation MonthNumber of Days Percent Time June 17-3010.5263 July 1-31231.2105 Aug. 1-31221.1579 Sept. 1-2015.7895

17. Summer Months 2013 JUNE JULY SMTWTFS SMTWTFS 1 1 2 3 45 6 2345 6 78 78910111213 9101112131415 14151617181920 16171819202122 21222324252627 2324 25 2627 28 29 282930 31 30 AUGUST SEPTEMBER SMTWTFS SMTWTFS 12 3 1 2 3 456 7 45678910 8 9 11121314 11121314151617 15 16 1718192021 18192021222324 222324 25 262728 252627 282930 31 2930

18. CHART #1 - "19-DAY CHART" (Daily Factors) Red Binder VI-12 # of Working Days used Dist %days used Dist. % 1.052613.6842 2.105314.7368 3.157915.7895 4.210516.8421 5.263217.8947 6.315818.9474 7.3684191.0000 8.4211201.0526 9.4737211.1053 10.5263221.1579 11.5789231.2105 12.6316

19. NIH Cap Rate maximum changes each January 1 and is dependent on start date of award; set by NIH January 1, 2012 monthly maximum is $14,975 so applies to faculty with salary over $134,775. Less than 3/9 th max on NIH: pay with ARC. NIH supplement uses dos code AAC, TC 3998

20. UCPath Go-live date for UCSB is July 1, 2015. How additional compensation is processed will change New terminology New processes Funding decisions/input to remain at the departmental level