Academic Policy  1435.70 

Faculty Salary Funding Incentive Plan

Faculty of the University of Arkansas have the opportunity to participate in a Faculty Salary Funding Incentive Plan (FSFI Plan) which allows payment incentives to faculty who secure funding for their salary from extramural sources to support research, scholarly, or training activity.

Purpose

The purpose of the FSFI Plan is to enhance the research and scholarship of faculty by increasing the level of extramural funding that enhances the prestige of the institution and provides full federally negotiated indirect costs. To help encourage research that includes full indirect costs, the University will provide an annual incentive payment to faculty who are effective in securing extramural funding for their salary. Associated benefits will include 1) retention and employment of faculty who can compete effectively for extramural funding, and 2) stimulation of scholarly activity associated with becoming grant competitive.

Provisions

To participate in the FSFI Plan, a faculty member will include all or a part of their base UA salary and fringe benefits in an externally-funded grant or contract budget. At the end of each fiscal year, June 30, the salary support for each faculty member will be evaluated to determine eligibility for an incentive payment. If eligible, this incentive payment will be made to the faculty member in accordance with the policy criteria. Such payment will be made in a lump sum in such a manner as to assure adherence to all prevailing laws and policies. The payment will be subject to applicable withholding.

Criteria

  • The faculty member must hold a full-time tenure-track, tenured, or non-tenure track faculty rank/title as defined in Academic Policy Series 1435.50.  The faculty member’s position must be state-funded, all or in part.  Faculty members who hold 100% administrative appointments are eligible to participate.  Faculty with administrative appointments with the title of Dean, Vice Chancellor, or Chancellor are not eligible. 
  • The extramural funded salary must be for at least 0.1 Full-time Equivalent in the fiscal year for 12-month appointments. For 9-month appointments, the extramural funded salary must be for at least one month during the academic year to be considered for this program. The expectation is that the investigator would first want to use grant funds to pay summer salary. For 9-month appointees, this incentive plan would only apply to extramural funded salary during the academic year.
  • This program applies only to extramural funded salary paid for research and scholarly efforts. In-kind cost share and other internal matching funds do not apply. Any extramural funded salary that is associated with a reduction in teaching responsibilities is excluded from the incentive payment calculation.
  • The incentive payment will be calculated as 50% of the salary paid by grants, up to a maximum of 25% of the faculty member’s annual salary for 12-month appointments or academic year salary for 9-month appointments. Calculation of any incentive payment shall exclude the value of any fringe benefits. Partially state-funded faculty positions are eligible up to a maximum of 25% of the position’s state appropriation.
  • Any incentive payment made shall not modify the faculty member’s base salary.
  • Total compensation, including the incentive payment is subject to Academic Policy Series 1435.60 and state law pertaining to line-item maximum salary levels and related approval processes.
  • The salary support must be derived from either (a) federally funded research or training grants or contracts or (b) grants from industry or foundations.  In both cases, they must  pay at the full indirect cost rate as described in the University’s Rate Agreement with the U.S. Department of Health and Human Services (also called overhead or facilities and administration costs). External funds from gifts, in-state commodity organizations, and state agencies will not apply. Grants and contracts must include authorization to use funds for faculty salaries.
  • A request by a faculty member to seek an incentive payment under the FSFI Plan must be submitted on the Request form (Academic Policy 1435.70A) early in the fiscal year, but no later than December 1, in which the grant or contract will pay salary. This request must be submitted each year for which an incentive is anticipated. Approval by the department/program chair or head and appropriate dean will be contingent upon meeting the criteria and purpose of the FSFI Plan and upon the faculty member maintaining a high level of productivity. Final approval for participation in  the FSFI Plan will be by the provost. Faculty whose primary appointment is in the University of Arkansas System Division of Agriculture (UADA) should refer to the UADA faculty incentive policy. Deans will forward requests for participation to the vice chancellor for research and innovation for review. Requests will then be forwarded to the provost for final approval.
  • The faculty member must confirm in June of each year that salary was paid by completing the Confirmation form (Academic Policy 1435.70B) and submitting the form to the vice chancellor for research and innovation.
  • The faculty member must exhibit satisfactory performance in all assigned duties as determined by their chair (or head) and dean. Included is the responsibility of providing good fiscal and administrative management of all extramural funds for which the faculty member is a principal investigator and completion of necessary reports in a timely and effective manner.
  • Participation in the Program is voluntary and is not mandated for either the faculty member or the University. Participation is not an entitlement but may be made available to eligible faculty members when both the University and the faculty member determine that it is in their mutual best interests to do so. Furthermore, the University reserves the right to suspend or terminate this Program or the participation of any faculty member at any time.
  • Faculty who wish to take part in this FSFI Plan must seek written approval in advance of participation, as described above. In addition, availability of any payments under the FSFI Plan is subject to the availability of state appropriations, and to any applicable State or Federal laws, regulations, or policies.
  • Modifications to any aspect of this FSFI Plan may be implemented at any time, as determined by the chancellor or provost. Such modification may occur through amendment of this academic policy or through written notice to the deans of affected academic units.

07/01/23

Reformatted for Web October 2, 2014
2/10/09