Overview of Institutional Base Salary Policy

1. Overview of Institutional Base Salary Policy July 13, 2006

2. Definition • Base annual compensation set by UMB for employee’s appointment, whether that employee’s professional effort for UMD is spent on research teaching, patient care, or other activities. • Not a Full Time Equivalent Salary

3. Use of Institutional Base Salary • This is the salary used in proposals • The effort related to the institutional base salary is the effort disclosed in other support pages • This is the salary used (converted to a FTE basis) to determine if someone is over the salary cap. • Since we have to be consistent between proposing and costing, this is also the basis for effort reporting • i.e. effort compensated by salary outside of institutional base salary is not included in the effort distribution • Allocation of institutional base salary must be reconcilable to effort allocation

4. What’s In • SOM compensation paid from the practice plan • This is a change from previous communications.

5. What’s Out • SOD compensation paid by the practice plan • Compensation paid by the VAMC in a VAMC pay check • Payments under a salary enhancement plan • Payments under a performance incentive plan • All incentive practice plan income • Special one-time payments

6. Changes to Institutional Base Salary • Cannot change as a result of changes in grant/contract funding, clinical income or other revenues. • Generally is set at the beginning of the fiscal year and does not change. • May change for: • Change in appointment (FTE level) • Requires new appointment letter and cannot change as a result of changes in support. • University-wide, mid-fiscal year cost of living or merit adjustments • Retention or equity adjustments • Promotion in rank or position • Change in employment responsibilities • Assumption of specific academic or administrative duties

7. Payable Institutional Salary/Total Approved Salary • Payable Institutional Salary and Total Approved Salary include variable compensation • Never used on grant applications

8. Salary Letters • Annual salary letters must be provided to faculty members. • Must disclose Institutional Base Salary and/or Total Approved Salary/Payable Institutional Salary. • Standard language to be provided