University of California, San Diego
School of Medicine & School of Pharmacy
Implementation Procedures for the
Health Sciences Compensation Plan
These University of California, San Diego School of Medicine and School of Pharmacy Implementation Procedures for the Health Sciences Compensation Plan (hereafter referred to as Implementation Procedures) are hereby jointly developed and approved in accordance with the Health Sciences Compensation Plan (hereafter referred to as The Regents’ Plan) approved by The Regents of the University of California in July of 1999, and the Guidelines on Occasional Outside Professional Activities by Health Sciences Compensation Plan participants (Guidelines) issued by the President on November 23, 1999. These Implementation Procedures are supplementary to The Regents’ Plan at the University of California, San Diego (UCSD) School of Medicine and School of Pharmacy. Department compensation plan procedures (hereafter referred to as Department Procedures) shall be developed in accordance with these Implementation Procedures. All Department Procedures must be reviewed and approved by the Vice Chancellor for Health Sciences (VCHS) and the applicable School Dean before implementation.
The Regents’ Plan and these Implementation Procedures will be used in each Department to foster academic balance among the joint responsibilities of teaching, research, patient care, and other public service responsibilities. Individual levels of compensation will be established so as to maintain this academic balance and to permit the recruitment and retention of the individuals necessary for each School to fulfill its missions at a level of excellence.
In addition to these Implementation Procedures, Plan participants are also subject to the requirements of other University policies including: 1) the University’s Conflict of Interest Code, adopted pursuant to the requirements of the Political Reform Act of 1974, which requires designated University employees to disqualify themselves from participating in University decisions in which they have a personal financial interest and 2) the Policy on Requirements to Submit Proposals and to Receive Awards for Grants and Contracts Through the University. A faculty member’s compensated outside activities may create an obligation for the faculty member to disclose a financial interest before making or participating in certain University decisions. Department Procedures must reference the University’s Conflict of Interest Code, adopted pursuant to the requirements of the Political Reform Act of 1974 (see web site http://coi.ucsd.edu). Faculty can obtain information on the disclosure and disqualification requirements of the Political Reform Act of 1974, including the Academic Decision Regulation, from the campus Conflict of Interest Office.
II. REVIEW AND APPROVAL RESPONSIBILITY
These Implementation Procedures are developed to be consistent with the policy framework of The Regents’ Plan. Affected Plan participants shall be afforded the opportunity to review and comment on any proposed revisions to the Implementation Procedures. This will include consultation with the joint School of Medicine and School of Pharmacy Compensation Plan Advisory Committee (called the Outside Professional Activities Review and Advisory Committee or OPARA Committee), as well as the Faculty Council. School Deans, the Vice Chancellor for Health Sciences (VCHS), the Chancellor, and the President shall approve all revisions. VCHS shall administer local implementation. All Department Compensation Procedures shall be reviewed and approved by the applicable Dean and VCHS prior to implementation.
The President may approve individual exceptions to provisions of The Regents’ Plan and to these Implementation Procedures to meet special teaching, research, public service, or clinical service requirements. Such exception requests shall be proposed by the appropriate Chairperson and approved by the applicable Deans, the VCHS and the Chancellor prior to the President's review. The OPARA Committee shall be provided with the opportunity to review and comment on any such proposed exceptions prior to the Chancellor forwarding the exception request to the President.
III. MEMBERSHIP IN THE COMPENSATION PLAN
Medical and Pharmacy School faculty shall be members of this Plan if they hold University funded appointments at greater than 50 percent time in School of Medicine and School of Pharmacy departments in any of the following professorial series: Professor, Professor In-Residence, Professor of Clinical _______ (e.g., Medicine), Adjunct Professor, Acting Professor, Clinical Professor, Visiting Professor, Dean, and other titles approved by the President.
Faculty members who are otherwise eligible for this Plan, as defined above, but who have appointments of 50 percent or less of full-time, may participate in this Plan upon the recommendation of the Department Chair and approval by the applicable Dean(s) and VCHS. Department Procedures should specify when membership in the Plan is required for faculty whose University-funded appointment is 50 percent or less of full-time.
If the faculty position is funded by two or more School of Medicine and School of Pharmacy departments, the faculty member shall be subject to the Department Compensation Plan Procedures in which the preponderance of her/his academic activities occur. Exceptions to this policy must be recommended by the relevant Department Chair(s) and must be approved by the applicable Dean(s) and the VCHS.
By statutory requirement and associated Regental policy, membership in the Plan is a term and condition of employment. Department Chairs are responsible for ensuring that all new and continuing eligible Plan members receive a copy of The Regents’ Plan; these Implementation Procedures; and any related Department Compensation Plan Procedures.
No single member professional corporations, or any other form of professional corporation, partnership, or other entity(s) for the provision of professional health care shall be permitted for faculty under the Plan without the express written approval of the President.
COMPENSATION-RELATED IMPLEMENTATION PROCEDURES
This section of the Implementation Procedures addresses the following compensation related matters:
Section IV.A. Components of Compensation
Section IV.A.1. Base Salary And APUs
Section IV.A.2. Optional Additional Compensation
Section IV.A.2.a. Negotiated Additional Compensation (Y)
Section IV.A.2.b. Incentive/Bonus Compensation (Z)
Section IV.A.3. Other Miscellaneous Income Which May Be Retained By Plan Members
Section IV.A.3.a. Prizes, Royalties, Honoraria, Stipends, Income From Unrelated Activity
Section IV.A.3.b. Income From Occasional Outside Professional Activities
Good Standing Criteria
Limitation On Days Of Outside Activity
Limitation On Amount Of Income That Can Be Directly Retained
Limitation On Use of University Resources For Outside Activity
Requests For Exceptions To Occasional Outside Activity Limitations
Annual Outside Activity Report
Section IV.B. Annual Negotiation Process and Department Procedures
Section IV.C. Procedures Applicable To Termination of Employment Circumstances
Section IV.D. Assessments Applicable To Professional Fees And Outside Income Not Directly Retained
IV. A. Compensation Components: Faculty members participating in this Plan shall receive base salary as described in Section IV.A.1. below; be eligible for optional additional compensation as described in paragraph IV.A.2. below; and be permitted to retain the other miscellaneous income as described in paragraph IV.A.3. below. No State funds shall be used for any component of compensation beyond the University’s Fiscal Year Salary Scale applicable to the Plan member’s rank and step (i.e., beyond Scale 0, which is the X component only). Compensation above the Fiscal Year Salary Scale 0 (X only) level shall be funded from Compensation Plan funds and other appropriate non-State funds, and in compliance with any associated fund source restrictions.
IV.A.1. Base Salary And APUs: Base salary for an individual Plan member refers to that portion of salary associated with that faculty member’s academic rank, step and Academic Program Unit (APU). Every APU will be annually assigned to a Health Sciences Compensation Plan Salary Scale (i.e., any of the scales between Scale 0 through 9). APUs may be assigned to different Salary Scales, in accordance with guidelines issued by the President and only with the approval of the applicable Dean(s) and the VCHS. Each Salary Scale delineates a specific amount for each rank and step. Scale 0 equals one times the University’s Fiscal Year Salary Scale (X only). Scale 9 equals 2.25 times X, and the Scales below 9 are at lesser multiples of X only. APUs shall be proposed, and the basis for their creation explained, by the Chairperson, and approved by the applicable Dean(s) and VCHS. An APU must be a group of faculty with similar clinical, teaching and/or research responsibilities. The base salary is considered covered compensation under the University of California Retirement Plan (UCRP), up to the amount permissible under law, and in accordance with UCRP provisions and regulations. Except under unusual circumstances, and only with the approval of the VCHS, mid-year adjustments in APU salary scales are not permitted. Base Salary for those faculty in APUs above Scale 0 includes X Prime (X’), the amount above X and up to and including Scale 3, and for those in APU above Scale 3, it also includes the amount beyond Scale 3, which is referred to as Y Prime (Y’). Again, no State funds may be used for either X’ or Y’ salary
IV.A.2. Optional Additional Compensation: Additional negotiated compensation (Y) and/or incentive bonus compensation (Z) may be paid in accordance with the following requirements and approved Department Procedures.
IV.A.2.a. Negotiated Additional Compensation (Y): Additional compensation beyond base salary may be negotiated annually with the Division Head or Chair, as specified by the Department of each Plan member. The Department Chair will propose negotiated additional compensation, and it will be subject to approval by the VCHS. This additional negotiated compensation is called “Y.” Y will be paid to faculty through the University payroll system; will be subject to Federal and State withholding, and will be reported on a W2 form as wages. Mid-year renegotiation of Y is permitted only under unusual circumstances and with the approval of the VCHS. This component of pay is beyond the base salary and is not currently covered compensation under the University of California Retirement Plan (UCRP).
IV.A.2.b. Incentive/Bonus Compensation (Z): Incentive Bonus Compensation may be earned in addition to Base and Negotiated Additional Compensation. Z is not covered compensation under the University of California Retirement Plan (UCRP). Z compensation will be paid to faculty through the University’s payroll system; will be subject to Federal and State withholding, and will be reported on a W-2 form as wages. Z compensation may be paid on a monthly, quarterly, semiannual, or annual basis, as specified in department compensation plan procedures, and may be based on clinical, consulting or other miscellaneous earnings. The Department Compensation Plan Procedures must be approved by the Dean(s), as well as the VCHS, and shall describe how Z compensation will be calculated and when it will be paid.
IV.A.3. Other Miscellaneous Income That May Be Retained By Plan Members: All income derived from patient care activity is due the Plan. Further, except for the income described below, other professional income related to the qualifications associated with the Plan member’s Health Sciences appointment is also due the Plan. This includes income earned while on paid leaves of absence, vacations, holidays, weekends, etc. Professional income, as used here, includes both cash and non-cash compensation (e.g., stock and stock options). Income due the Plan must be deposited into the revenue account of the appropriate School’s compensation plan fund. The following categories of income may be directly retained by the faculty member, subject to limitation indicated.
IV.A.3.a. Prizes, Royalties, Honoraria, Stipends and Income From Unrelated Activity: The following categories of income may be retained directly by Plan members.
Prizes: Defined as gifts in recognition of personal achievements and not for services rendered;
Royalties: Defined as shares of proceeds for contributions as authors or inventors, as allowed under the University's copyright and patent policies;
Honoraria: Defined as payments by agencies outside the University for occasional lectures and similar public appearances beyond normal academic responsibilities to the University of California and which are not in return for other services, whether given directly or indirectly;
University honoraria: Defined as payment for occasional lectures or similar services performed on a University of California campus as permitted by Academic Personnel Policy;
Administrative stipends: Defined as payments by the University for responsibilities related to University administration beyond normal academic responsibilities; and
Unrelated Income: Defined as income from a profession or activity unrelated to the training and experience that is the individual's qualification (e.g., M.D. or Ph.D. degree) for University appointment, as determined by the Department Chairperson in consultation with the Dean.
IV.A.3.b. Income From Occasional Outside Professional Activities: Some income which results from occasional service (other than patient care) to governmental agencies; work as a consultant to non-profit or for-profit entities; activity as an expert or professional witness; and participation in continuing education programs administered by the University may be retained, so long as the Plan member complies with the following provisions. Also, a Plan participant who has satisfied the good standing criteria established by his/her department, and who is in compliance with various limitations discussed in the following, is allowed to engage in outside professional activities (other than patient care) without prior approval from his/her Department Chair or, so long as his or her University obligation are satisfactorily met.
Good Standing: Good standing criteria shall be established in writing by each department and included in the Department’s Compensation Plan Procedures. Good standing criteria are subject to review by the OPARA Committee per Section V., and they must be approved by the applicable Dean and the VCHS. Good standing criteria might include, for example, requirements for clinical coverage, teaching obligations, participation in departmental and University activities, and revenue generation. Plan participants must satisfy the good standing criteria in order to be allowed to earn and/or retain income from professional activities. Faculty who are not in good standing must obtain advance approval from the Department Chair to engage in any unassigned professional activities, and income from all such activities shall accrue to the Plan, not the Plan participant. Exceptions may be approved in writing in accordance with the Section on Exceptions below. Any faculty member who is not in good standing shall be notified in writing by the Department Chair of the reasons for that determination. Faculty who believe the good standing criteria have been applied unfairly may appeal to the OPARA Committee in accordance with the procedures described in Section V.
Limitation Regarding Number Of Days: The number of days devoted to occasional outside professional activity can not exceed 48 days per fiscal year. This limit on the number of days devoted to compensated outside professional activities applies regardless if they are conducted during the normal work week, on weekends, evenings, vacations, paid leaves, etc. For members of the UCSD School of Medicine Health Sciences Compensation Plan, activities that are not counted toward the 48-day limitation include: reviewing grants and manuscripts; serving on Study Sections; being an oral examiner for national specialty boards; and editing an academic journal. If it is necessary to exceed the 48-day limit in order to complete a specific outside professional activity, the entirety of such activity will require approval under Request For Exceptions below. It may be permitted if approved in advance by the VCHS if the amount of time beyond 48 days is reasonable as determined by the VCHS. A day of outside professional activity is defined based on common sense and customary practices of each department. The Department Chairs and faculty should exercise sound professional judgement when determining what constitutes a day of outside activity. Faculty should be prepared to provide, upon request, an explanation of the definition of a “day” used in preparing the required annual report as described below.
Limitation On The Amount Of Income That Can Be Directly Retained: The aggregate annual income from occasional outside professional activity that a Plan member may directly retain cannot exceed the Regentally approval threshold, which is the greater of $20,000 or 20% of the Health Sciences Salary Scale for an individual’s rank, step, and APU (i.e., X, X’ and, if applicable, Y’). The total amount of income from occasional outside professional income that a Plan member may receive via his or her University paycheck is however not limited, although compensation a Plan member receives via his or her University paycheck is subject to normal academic personnel and budgeting processes. Also, outside activity income that passes through University accounts is assessed per Section IV.D. Directly retained income is not assessed. The value of non-cash compensation (i.e., stock, stock options, etc.) that a Plan member receives for occasional outside professional activity, on the day of receipt, must be counted toward limitations of retainable income discussed here. Each faculty member is responsible for maintaining a running total of his or her earnings from the outside professional activities. If a Plan participant wishes to engage in an activity that might reasonably be expected to cause his or her total annual earnings from outside professional activities to exceed the approval threshold, then the Plan participant must request approval to engage in the activity in accordance with the Exception Section below.
Limitation on Use of University Resources for Outside Activity: The use of University staff, laboratories, facilities or other resources in connection with outside professional activity is subject to limitation under the Faculty Code of Conduct. Academic Personnel Policy 015, Section II, Part II, C (see web site http://www.ucop.edu/acadadv/acadpers/apm/apm-015.pdf) lists the unauthorized use of University resources or facilities for personal, commercial, political and/or religious purposes as a type of unacceptable conduct. In general, when faculty retain income for professional consulting or expert witness activity, particularly when the activities are conducted for third party for-profit entities or private individuals, the cost associated with the consulting or witness activities shall be borne by the third party or the faculty member, not by the University. In addition, the University’s liability coverage does not extend to certain faculty consulting and expert witness activities. For example, University malpractice/professional liability coverage does not generally extend to expert witness activities when the faculty member retains the related income (See UC Business and Financial Bulletin, BUS-9, Professional Medical & Hospital Liability Self Insurance Program at http://www.ucop.edu/ucophome/policies/bfb/bus9.html for more information). Questions about the appropriate use of University resources and coverage under University liability programs should be discussed with the faculty member’s department or unit head, who may consult with the Dean and VCHS. The Dean or VCHS will, if necessary, refer the question to other appropriate University officers.
Requests For Exceptions To Occasional Outside Activity Limitations: Plan participants must request and receive approval in advance for exceptions: 1) to exceed the 48-day limit on compensated outside professional earnings; 2) to engage in compensated outside professional activities if the Plan participant is not in good standing; and/or 3) to exceed the annual outside professional earnings threshold on directly retained earnings. Authority to approve exceptions varies depending on the type of exception. Engaging in outside activity beyond the 48-day limit or when a faculty member is not in good standing is subject to approval in writing by the VCHS. However, only the Chancellor has authority to approve any exception request which involves a Plan participant directly retaining earnings that exceed the 20%/$20,000 limitation. All exception requests must be submitted in writing to the Department Chair and must include the relevant information about the engagement, including: the nature of services to be provided; the person or entity who will receive and pay for the services (e.g., government entity, for-profit pharmaceutical company, etc); and the anticipated period of service and/or days to be devoted to the activity. In addition, if an exception involves exceeding the annual outside professional earnings threshold, the request must state the total expected income from the activity and the amount by which the participant’s total annual earnings from outside activities are expected to exceed the limit. Plan participants should notify the Chair immediately if any of the information they provided in the approved request changes or becomes inaccurate. Department Chairs will forward all exception requests to the Dean(s) and VCHS. The Dean will recommend to the Chancellor whether to approve any request which involves a Plan participant retaining earnings that exceed 20%/$20,000 threshold. If the Chancellor approves such requests, the approval will be in writing with a copy to the President, and such approvals bring with them the authorization for the Plan participant to directly retain the entire amount approved by the Chancellor.
Annual Outside Activity Report: Each Plan member must provide to his or her Department Chair an annual report describing the previous year’s outside professional activities from which the Plan participant retained income and an attestation to adherence with these Implementation Procedures and Department Compensation Plan Procedures. The following activities and/or income do not need to be included on the report: royalties, prizes, honoraria, University honoraria, administrative stipends, and income from a profession or activity unrelated to the training and experience that is the individual’s qualification for University appointment, as determined by the Department Chairperson in consultation with the Dean and VCHS. This annual report should include a general description of the entity to whom the service was provided (e.g., individual person, law firm, research company, or other); a brief description of the type of service performed; a description of the faculty member’s relationship to the entity (e.g., consultant, board member); and the number of days devoted to the activity. The report shall also indicate the month in which the service was provided. The Department Chair may request, and the faculty member shall be obliged to provide, information regarding the specific person or entity to whom the services were provided and the dollar amount associated with each service.
IV.B. Annual Negotiation Process and Department Procedures: Plan participants shall annually negotiate their salary with their Division Head or Chairperson in accordance with Department Procedures. The negotiation and approval process used in each unit shall be specified in the Department Procedures, which are subject to approval by the Dean(s) and VCHS. Additional compensation will be paid in accordance with the applicable University, campus and Department Procedures during sabbatical leave, vacation leave, sick leave, or other leave with salary. Each department shall develop Department Procedures that detail the Base Salary scale; the manner in which Additional Compensation is negotiated; and the methodology for calculating Incentive/Bonus Compensation (when applicable) and the frequency of payments; department requirements on occasional outside professional activities, including good standing criteria; the policies regarding paid and unpaid leaves (including paid leave for disability) and sabbaticals. These Department Procedures shall be approved by the Dean(s), as well as the VCHS, and may be altered only on July 1st, of each fiscal year. Each department must ensure that Plan participants have an opportunity to review and comment on proposed Department Procedures, and any significant modification of such Procedures. Revisions must be reviewed and approved by the Dean. Department Procedures may be more, but not less, restrictive than The Regents’ Plan and must be consistent with these Implementation Procedures. By July 1 of each fiscal year, each faculty member of the Plan shall receive, in writing from his/her Department Chair or Division Head, a statement of proposed compensations for the forthcoming period July 1 June 30. Base salary, additional compensation, and the methodology for calculating incentive compensation will be detailed.
IV. C. Procedures Applicable To Termination of Employment Circumstances: In the event of termination of employment, any outstanding account receivables will be treated in accordance with the compensation arrangement of the individual faculty member, but all receivables will be the property of the University. Receivables for those with Optional Incentive/Bonus Compensation will be handled in accordance with Department Procedures. All compensation, including any compensation calculated based on any outstanding account receivables, must be paid through the University of California payroll system.
IV.D. Assessments Applicable To Professional Fees And Outside Professional Income Not Retained: A School assessment on gross professional fee collections (the so called Dean’s tax), used to pay overhead and operational expenses, will be collected monthly. The rate used to calculate the School’s assessment will be recommended by the Dean and approved by the Chancellor. Department Procedures may levy assessments beyond the School assessments for the purpose of funding department operating expenses (the so called Department tax). Department faculty shall be provided an opportunity to review and comment on proposed changes to department assessments.
V. OUTSIDE PROFESSIONAL ACTIVITIES REVIEW AND ADVISORY COMMITTEE
An Outside Professional Activities Review and Advisory Committee (OPARA) will assist the VCHS in resolving issues on outside professional activity. The Faculty Council will nominate faculty to fill four positions on the School’s OPARA Committee and conduct elections to select those who will serve. Eligible voters shall include all Plan members of the School of Medicine and School of Pharmacy. No fewer than one of these elected faculty members shall have a Ph.D. degree. The VCHS will appoint four additional members, and no fewer than one of such appointees will have a Ph.D. degree. If none of the elected Committee members is from the School of Pharmacy, the VCHS may choose to appoint five committee members, with one of those members being from the School of Pharmacy. Finally, the VCHS will appoint an additional member to serve as Chair of the OPARA Committee. Both the elected or appointed committee members are limited to four consecutive one year terms, and initial terms will be staggered to ensure committee continuity. The committee’s functions include: advising the VCHS on these Implementation Procedures and department good standing criteria; the processes for developing Departmental Implementing Procedures, including methods for obtaining faculty input and for determining consistency with School Implementing Procedures; and mechanisms for hearing faculty grievances with regard to the implementation of administration of these Implementation Procedures. The committee shall meet at least annually with representatives of at least four Medical School departments to review Departmental Procedures for compliance with outside activity guidelines, and every department of the School should be reviewed at least once each four years.
VI. GRIEVANCE PROCEDURES
Faculty who have a complaint about issues related to provision of this Plan or its implementation in their unit should first try to have the issues resolved at the unit level. If the complaint cannot be resolved through discussions, the faculty member’s complaint and the Department Chair’s response should be memorialized in writing. If the faculty member is dissatisfied with the department’s decision, he or she should file formal complaint with the Chair of the OPARA Committee (Chair-OPARA). Chair-OPARA will undertake fact-finding and will then present the case for consideration to the OPARA Committee. Both the complainant and the complainant’s chair (or designee) will have the right to be heard by the committee. The committee will issue a formal recommendation for consideration by the applicable Dean(s), and then the VCHS for final decision. If the faculty member is dissatisfied with the VCHS’s decision, she or he can pursue administrative remedies through applicable University academic personnel processes.
To ensure that the formal complaint process is fair and impartial, committee members shall excuse themselves from deliberation on any single complaint if the committee member has already participated in an administrative review of the action being considered in the grievance process or if there is a conflict of interest.
DISCIPLINARY ACTION RELATED TO IMPLEMENTATION PROCEDURES
The University reserves the right to take corrective action and disciplinary measures against any Plan member who violates, neglects or manipulates Compensation Plan requirements, subject to normal academic personnel policies and rules. Department Chairs(s) must notify the Chair-OPARA if they believe a Plan participant has violated, neglected, or manipulated Compensation Plan requirements. Any Plan member being subjected to corrective actions will be so informed in writing by an appropriate University official at least thirty days in advance of the implementation of the action or measure. Situations where Plan members will be considered out of compliance include, but are not limited to, failure to turn over income due to the Plan as required by campus Implementing Procedures and failure to accurately disclose and describe the nature and scope of outside professional activity as required by the campus’ Implementing Procedures. The OPARA Committee will review disputes about corrective action related to the Implementation Procedures and make recommendations to the applicable Dean and the VCHS. Corrective action refers to termination of certain privileges available to Plan members, including the opportunity to earn and receive compensation above the fiscal year salary scale through the Plan, because of noncompliance. For example, corrective action may include incentive or bonus compensation (Z) termination until such time as a Plan member complies with the Plan provisions, or adjustment of negotiated compensation (Y), both with consideration of the Plan member’s prior performance and compliance with these Implementation Procedures and Department Compensation Plan Procedures. Compensation established in accordance with the specialized Health Sciences Salary Scales (or base salary) shall not be reduced as a corrective action unless the Plan member is placed, by Presidential exception, on the fiscal year salary scale. Whenever a reduction in compensation is a result of corrective action related to outside activities, the faculty member will be so notified in writing. Corrective action will not preclude sanctions or disciplinary measures in accordance with the Faculty Code of Conduct or Academic Senate Bylaws (see http://academicaffairs.ucsd.edu/offices/apo/). Violations by Plan members of either the time limit or approval limits on outside professional activities represent an unauthorized use of University resources or retention of funds belonging to the University. Such violations are subject to discipline in accordance with the Faculty Code of Conduct. Academic Senate members subject to corrective action under these Procedures have available to them a grievance process through the Privilege and Tenure Committee as described in the San Diego Division of the Academic Senate’s Bylaw 230. (http://www-enate.ucsd.edu/manual/SDBYLAWS.RV2.HTML#BYLAW230). Other faculty may file a grievance under Academic Personnel Policy 140 (http://www.ucop.edu/acadadv/acadpers/apm/s1-140.html)
VIII.A. Base Salary-Related Benefits: Base SalaryRelated Benefits are associated with an individual's salary from one of the Health Sciences Salary Scales (APU Scales 0 through 9), paid through the University of California payroll system. These benefits include participation in the UCRP, health care insurance, disability insurance, regular term life insurance, and other benefits as may be approved by The Regents. Base Salary benefits will be available to faculty members who are members of this Plan on the same basis as to all other members of the University’s faculty. No State funds shall be used any portion of benefit expenses applicable to compensation above Fiscal Year salary (Scale 0). Any required contribution to the Health Sciences retirement reserve fund on the portion of Base Salary above Scale 3 cannot be charged to State funds, and will be charged to the appropriate department/division Medical School fund account.
VIII.B. Optional Benefit Programs: Optional Benefits on Additional Compensation, paid through the University payroll system have been authorized. These include disability and life insurance programs, as approved by the Office of Employee Benefits/Human Resources, Office of the President, and the Health Sciences Severance Pay Plan. A department may seek approval from the Dean and the Chancellor to participate in such programs.
VIII.C. Leaves: Plan members who are eligible for sabbatical leave or other leaves with salary, including parental leave, may be granted such leave at a compensation rate above the Health Sciences Scales Base Salary rate. Department Procedures must specify the salary rate(s) that will be used for calculating compensation during paid leaves. The possible rates that may be used are: 1) Health Sciences Scale Base Salary and/or 2) total negotiated salary (Base plus additional negotiated compensation). Each department’s Implementation Procedures shall include provisions for Plan members who are eligible for sabbatical leave or other leaves with salary, including parental leave, to ensure that such benefits are provided uniformly within departments and/or divisions. No department may offer faculty benefits beyond those approved by The Regents for faculty members in the University.
IX. CAMPUS ACCOUNTING METHODS AND INDIVIDUAL ACCOUNTABILITY
IX.A. Management and Reporting of Income and Expenses: All professional fee income, except for the excluded categories listed under IV above, will be managed, accounted for and reported as revenue of the University, and must be deposited into the revenue account of the appropriate Departmental Compensation Plan fund (funds numbers 60XXX). All income paid to faculty will be subject to Federal and State withholding and reported on a W2 form as wages. For consulting and other payments not authorized for direct retention, but which are made directly to the faculty member and are owed to the Plan, the check should be endorsed payable to The UC Regents and deposited in the same revenue accounts. A receipt for each such deposit should be provided to the faculty member, along with any other requested documentation the faculty member may need in conjunction with the filing of his/her personal income tax submission. All financial transactions shall be approved, documented and otherwise processed or executed in accordance with University policies, procedures and delegations of authority. In accordance with the Plan, all professional fee billing and collection activities shall be conducted by a University billing group or by an external vendor which has been approved by the UCSD Medical Group and the Dean’s Office. All billing and collection services for external vendors shall be detailed in a written agreement. Agreements with external vendors shall follow guidelines developed by the Office of the Controller, Office of the President. Regardless of the billing agent, all professional fees shall be deposited directly into an authorized University bank account. Contracts with approved external billing agents shall utilize the standard UCSD billing agreement form with appropriate approval by the Medical Group, Dean’s Office and the Materiel Management Department. The accounting standards specific in the University of California Accounting Manual must be used in reporting income and expenses in all Plan matters.
IX.B. Fund Accounts and Sources: Compensation Plan fund accounts shall be structured so that each department has at least two distinct Funds: a current-year operations fund and a prior-year fund to which accumulated surpluses will be transferred.
IX.C. All income from professional services, University and affiliated institutional, professional or management services performed by Plan participants and other funds as required by the Chancellor shall be appropriately recorded in such accounts.
IX.D. Contingency in Event of Inadequacy of Medical School Fund Accounts: Although the Plan allows for the transfer of funds from one fund account to another, the customary practice at UCSD will be to preserve the financial autonomy of each department by maintaining separate departmental fund accounts.
IX.E. Budgeting: Each department shall develop and submit to the Dean each year an annual budget projecting income and expenses for departmental Plan funds as a part of its annual faculty salary budget submission. Except where accumulated surpluses are being used to support an extensive growth phase, it is expected that revenue will always be adequate to support anticipated expenses. Departments should clearly indicate the funding mechanism for all benefits provided under the provisions of the Plan. Funding clinical practice operation expenses shall have the highest priority, followed by compensation and benefit plans for participants. Each department may have an assessment rate for each which is approved by the applicable Dean and applied against gross professional fee collections; capitation payments; clinical service agreement income; and expert witness fee and consultant income (beyond that which faculty can retain under provisions of paragraph IX.D.) and will be used to pay clinical practice operations expenses. Each department is expected to maintain a reserve for contingencies in an amount acceptable to the Dean. These reserves will be used for such academic purposes as funding necessary renovation projects, recruitment expenses, or unfunded research expenses, and as a security for emergencies. In the event a department has accumulated a surplus beyond that required as a reserve, it is expected that these funds will be used to enhance the department's academic program or to develop new programs as recommended by the Chair and approved by the Dean. Fund balances will be monitored monthly by the Dean’s Office.
X. IMPLEMENTATION AND TRANSITION ARRANGEMENTS
These campus procedures comply with the Plan approved by The Regents in July of 1999, and supersede any previous implementation. In order for UCSD to meet Plan requirements of these Implementation Procedures, each department shall submit to the Dean(s) and VCHS annual data on Departmental Clinical Compensation Plan operations and fiscal projections of costs and of sources of proposed funding for departmental fund accounts.