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Policies and Procedures
- Section II - 1.21(A) UMB POLICY ON COMPENSATION FOR 10-MONTH FACULTY
II - 1.21 (A) - UMB POLICY ON COMPENSATION FOR 10-MONTH FACULTY
(Approved by the President, August 2008)
Compensation: The payments of salary made to a 10-month faculty member, based on annual salary.
Earnings: The payments due a faculty member on a 10-month appointment based on the number of weeks and days worked during the 10-month faculty contract period.
Faculty obligation: The sum a 10-month faculty member owes a School if the faculty member’s Compensation exceeds Earnings as of the faculty member’s Separation Date.
Separation date: The date of a 10-month faculty member’s separation from service due to voluntary or involuntary termination of employment for causes including (but not limited to) retirement, death, discharge, and resignation. The term “separation from service” is defined in Section 409A of the Internal Revenue Code.
School obligation: The sum a School owes a 10-month faculty member if the faculty member’s Earnings exceed Compensation as of the faculty member’s Separation Date.
1. UMB faculty on 10-month appointments receive compensation in equal biweekly payments over a 12-month period. The 12-month period over which a 10-month faculty member is paid begins July 1 and ends June 30 unless (a) the faculty member does not go on payroll as of July 1 or (b) the faculty member’s Separation Date is earlier than June 30.
2. A 10-month faculty member’s earnings in a semester are one half of the faculty member’s annual salary. A 10-month faculty member’s weekly earnings are one half the annual salary divided by the number of weeks in the semester. The number of weeks in a semester is determined for each school based on the number of weeks in its academic calendar. Annually, the Vice President for Academic Affairs will establish and communicate to the Schools and Financial Services the number of weeks in each semester of the academic year, for each school at UMB. The number of weeks can vary from school to school, and from semester to semester. (Examples: (a) A fall semester in the School of Law has 13 weeks. A Law faculty member’s weekly earnings for that semester are annual salary divided by 2, divided by 13. (b) A spring semester in the School of Nursing has a 14-week semester. A Nursing faculty member’s weekly earnings for that semester are annual salary divided by 2, divided by 14.)
3. A 10-month faculty member’s daily earnings are the faculty member’s weekly earnings divided by 5.
4. A 10-month faculty member’s compensation is paid biweekly in equal installments. Each installment, biweekly compensation, is annual compensation divided by the actual number of pay periods in the fiscal year in which the compensation is paid. In fiscal years that do not include a February 29 date, the number of pay periods is 26.071429. In other fiscal years, the number of pay periods is 26.142857.
5. If a 10-month faculty member goes on payroll too late to be paid in the first pay period of the fiscal year, but is expected to work the full academic year, the biweekly compensation will be adjusted (increased) to take account of the actual number of pay periods in the fiscal year over which the faculty member will be paid.
6. At most points in a fiscal year, a 10-month faculty member’s compensation and earnings are not the same. If a 10-month faculty member receives compensation prior to the beginning of the 10-month academic year, when faculty effort begins and earnings accrue, a part of the faculty member’s compensation for 10 months effort is being paid before it is earned. Compensation will exceed earnings until approximately the midpoint of the academic year. If a 10-month faculty member receives compensation after the end of the 10-month academic term, a part of the faculty member’s compensation for 10 months effort is being paid after it is earned. Earnings will exceed compensation until final biweekly compensation for the fiscal year is received. Earnings and compensation are equal at the end of a fiscal year if a 10-month faculty member works the entire academic year and does not have a separation date earlier than June 30.
7. If a 10-month faculty member works less than the entire academic year, appropriate adjustment of compensation or earnings is required so that compensation equals earnings through the faculty member’s separation date.
(a) If, at a 10-month faculty member’s separation date, the faculty member has been paid compensation in excess of earnings through the separation date, there is a faculty obligation. The School will calculate it by determining the difference between compensation and earnings through the separation date. The School will either deduct the faculty obligation from any final payment of compensation (which for this purpose includes any obligated payments of accrued leave) or require repayment of the faculty obligation by the faculty member within 30 days after the separation date. A Dean may waive the requirement to recoup the faculty obligation due to extraordinary circumstances. Waivers shall be made in written form with a copy placed in the faculty member’s permanent School file and a copy sent to Financial Services for the payroll file.
(b) If, at a 10-month faculty member’s separation date,the faculty member has been paid, or is due to be paid, compensation less than earnings through the separationdate, there is a School obligation. The School must calculate the School obligation and pay it to the faculty member within 30 days of the separation date. A faculty member cannot waive receipt of the School obligation.
(c) The following examples, from a year that is not a leap year, illustrate the calculations:
FACTS: A 10-month faculty member at a salary of $80,000 will be paid over the 12-month period July 1 to June 30. The biweekly compensation of the faculty member will be $3068.49, or $80,000/26.071429. The weekly earnings of the faculty member in a semester are $3076.92, or $40,000/13. The daily earnings of the faculty member in a semester are $615.38, or $3076.92/5.
Case A: The faculty member goes on payroll at the beginning of the first pay period in the fiscal year, and resigns with a separation date that coincides with the last day of the fourth pay period. The faculty member was paid for four pay periods, but did no work during the first three pay periods because the academic term did not commence until the beginning of the fourth pay period. The faculty member’s compensation for 4 pay periods is $12,273.96 (4 times $3068.49). For the 2 weeks worked, the faculty member’s earnings are $6153.84 (2 times $3076.92). There is a faculty obligation of $6120.12, the difference between compensation and earnings. It will be recouped from final biweekly compensation and any value of leave payable upon separation. If those sources are not sufficient, the faculty member will be liable for the remainder of the faculty obligation unless the faculty member’s Dean waives the requirement due to extraordinary circumstances.
Case B: The faculty member’s separation date is the third work day of the 11th week of the second semester. The faculty member works 23 weeks and three days in the fiscal year. At the separation date, the faculty member has been paid for 18 pay periods, with compensation of $55,232.82 (18 times $3068.49). The faculty member has worked 23 weeks and three days, accruing earnings of $72,615.31 (23 times $3076.92, plus 3 times $615.38). The School obligation is the difference between earnings and compensation, $17,382.49. The School obligation must be paid to the faculty member within 30 days after the faculty member’s separation date. The faculty member cannot waive payment of the School obligation.