SUMMER QUARTER

VACATION EMPLOYMENT

An individual may not receive compensation for more than 57 working days for research, teaching and/or administrative service.

Total compensation from all sources for service during the summer period may not exceed 3/9ths of an individual's nine-month salary rate (“effort base”).  Payments covered under this policy include research, teaching, administrative compensation, intercampus lectures or other consulting services, and summer session payments. University Extension payments, and payments made in connection with Self-Supporting Program teaching are also included.  Payments of stipends for academic administrative service though, are not included in the compensation.

Individuals compensated during the summer from more than one department need to exercise care that payments made and service performed in each department are coordinated and do not overlap or exceed limitation.
 

I. NIH & SAMHSA SALARY LIMITATION

Under Federal law, the National Institutes of Health (NIH), the Substance Abuse and Mental Health Services Administration (SAMHSA) and the Agency for Healthcare Research and Quality (AHRQ) are permitted to impose a cap on the rate at which salaries are paid under contracts and grants that they fund.

Occasionally, other federal agencies such as the Centers for Disease Control (CDC) and the Health Resources and Services Administration (HRSA) also incorporate this limit on salary into their awards, even though they do not have legislative authority to do so.  Additionally, the cap has also been imposed on some programs sponsored by the American Heart Association and by the California Cancer Research Program (CRP) sponsored by the State of California Department of Health Services.

For the 2008 summer quarter, $191,300 is the maximum annual rate of pay for the full time effort at which an individual can be compensated.  This means that summer salary payments to an individual supported by NIH, SAMHSA or AHRQ funds may not exceed a rate of $15,941.67 per month ($191,300/12) for full-time effort.  This rate applies to awards issued during Federal Fiscal Year 2008.  It also applies to uncommitted funds from awards made in prior fiscal years that are carried forward into current awards.

Supplementation of NIH-capped salaries paid to University of California faculty is allowable. Supplementation is subject to availability of funds and is not an entitlement.  Only fund sources other than state general funds or contract and grant funds may be used for supplementation.  Payment of supplements should be made as a by-agreement amount (BYA) using title code 3998 (Salary Supplementation). 

Additional information about the NIH salary cap can be accessed through the Contract and Grant Administration websites at:

http://www.research.ucla.edu/ocga/nih/salarycapfaq.htm

 http://www.research.ucla.edu/ocga/Documents/2008_
Federal_Salary_Cap.pdf

II. BENEFIT CHARGES

Summer Compensation is subject to a 6.20% OASDI charge until the employee’s earnings reach the amount of $102,000 during the 2008 calendar year.  In addition, all payments are subject to a 1.45% Medicare charge.  Both the employee and the department will be assessed the OASDI and Medicare charges.  The department will  be assessed Workers Compensation and Unemployment Insurance charges. The percentage factor depends on fund source.


III. Retirement Contributions

Compensation that many academic appointees receive for summer session teaching or summer research is not considered “Covered Compensation” for determining University of California Retirement Plan (UCRP) benefits.  Since summer salary can be a significant portion of an academic appointee's annual earnings, The Regents have determined that some coverage for retirement purposes is appropriate.  Therefore, an employer and employee contribution to the Defined Contribution Plan Pretax Account based on those summer earnings has been approved by The Regents, to be effective with summer salary payments made on or after July 1, 2004.

The total contribution rate will be 7% of eligible summer salary, based on an employee's pretax contribution of 3.5% and an employer pretax contribution of 3.5%.  The employer's contribution will be attributed to the same funding source that provides the academic appointee’s summer salary.

Additional information on this new policy can be accessed online under APM 190 Selected Presidential Policies, Appendix G at:

http://www.ucop.edu/acadadv/acadpers/apm/apm-190-g.pdf

IV. SUMMER SESSIONS SERVICES

Individuals employed for a full load (100% of full time) in Summer Sessions are not eligible for additional employment during the period of Summer Sessions service.  Joint service in Summer Sessions and on other funding may not exceed a total of 100% of full time or 3/9ths of an individual's nine-month salary rate.