these faculty will be phased in over three (3) years (a third each year) until the UC salary is fully reduced in the third year to comply with these guidelines. • To reduce the impact on the faculty member’s retirement due to any reduction in UC salary, the new UC salary will be grossed up to account for a portion of the lost pension contribution. Example: o Original UC salary = $100,000 with 14% employer retirement contribution =$14,000 o New UC salary = $60,000 with 14% employer retirement contribution = $8,400 o Retirement impact = $5,600* o Grossed up UC salary = $65,600 Examples EXAMPLE A: Dr. Smith has a UC salary of $100,000 and covers 80% of his/her total salary with NIH grants. Dr. Smith is awarded a VA Merit Review grant with a $50,000 salary line. Dr. Smith’s UC salary remains unchanged and his/her total compensation increases to $150,000 ($100,000 from UC; $50,000 from VA). EXAMPLE B. Dr. Smith has a UC salary of $100,000 and covers 60% of his/her salary with NIH grants. Dr. Smith is awarded a VA Merit Review grant with a $50,000 salary line. Dr. Smith’s UC salary is reduced to $85,000. Dr. Smith’s total compensation is now $137,100 ($85,000 salary and $2,100 retirement gross up from UC; $50,000 from VA). EXAMPLE C. Dr. Smith is an Associate Professor and has a UC salary of $100,000 and covers 20% of his/her salary with NIH grants. Dr. Smith is awarded a VA Merit Review grant with a $50,000 salary line. The AAUP minimum salary for an Associate Professor is $59,540. Dr. Smith’s UC salary is reduced to $59,540. Dr. Smith’s total compensation is now $115,204 ($59,540 salary and $5,664 retirement gross up from UC; $50,000 from VA). Organizational units may institute policies more, but not less, restrictive than these guidelines if desired. Related Links:
Phone Contacts:
CoM Operations and Finance
558-2483
VA MERIT AWARDS I PAGE 2
HB PAGE I 68
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