Institutional Base Salary

Date Approved:8-13-2015
Last Revision:8-13-2015
Last Reviewed:8-13-2015
Approved By:President
Oversight Unit:HUMAN RESOURCES
This policy has a related procedure. Click to view the procedure below.
Purpose

Purpose: Northern Michigan University ensures Institutional Base Salary will be treated consistently throughout the institution to avoid disallowable salary payments. This policy supports regulations defined by the Federal Office of Management and Budget (OMB). Please note that this policy and accompanying procedures are intended to document our practice of how an individual’s base salary is determined – this is not a change to how we determine/document base salary.  

Policy

Policy statement: Institutional Base Salary (IBS) is the annual/hourly compensation paid for an employee’s position, whether that employee’s effort is spent on teaching, research, administration, service, or other duties outlined in the position description. The IBS is reflected in each individual employee’s contract, governed by the relevant collective bargaining agreement for represented employees and the Non-Represented Employee Handbook for non-represented employees.

Corresponding IBS Procedures outlines detailed procedures and information relating to this policy. Human Resources has the authority to edit these procedures.


Institutional Base Salary Procedure

Procedure

Institutional Base Salary Procedure

Definitions

Incidental work: Work in excess of normal for the individual for which supplemental compensation may be paid. [Source: OMB Circular A-21, J.10.a]  

Institutional Base Salary: The annual compensation paid by an organization for an employee’s appointment, whether that individual’s time is spent on teaching, research/scholarly activity, administration, service, or other duties outlined in the position description. Base salary excludes any income that an individual is permitted to earn outside of his/her duties for overloads, additional assignments, overtime, or shift differential. These are governed by collective bargaining units for represented employees and the non-represented employee handbook for non-represented employees.

Institutional Base Salary         

Authority to determine full workload is delegated to deans for academic positions and directors for administrative/staff positions.

Institutional Base Salary (IBS) is the employee’s current annual salary displayed in Banner Human Resources System form NBAJFTE for the position designated as primary.  In cases where information is not tracked on NBAJFTE (student and temporary employees) the hourly rate would be displayed on the form NBAJOBS.

The initial IBS is derived from the contract signed by the employee at the time of employment or is established by the relevant collective bargaining agreement. Increases to IBS are approved in accordance with the relevant collective bargaining agreement for represented employees and the non-represented employee handbook for non-represented employees. Under no circumstance should IBS of full-time employees be increased as a result of receiving additional funding from internal or external resources such as a fee generation project, a grant or a contract for services; however, a part-time employee’s appointment percentage may be increased up to full-time as a result of receiving additional funding as long as the rate of pay remains constant for all effort. Institutional Base Salary includes the following types of individual compensation provided for by the terms of the employment contract.

1.    Full time faculty and staff paid with regular pay earnings code, determined by appropriate job classification. Department heads are designated to review and recommend for approval the equivalent teaching load activities of the faculty with final approval granted by the Dean.

 Administrative Supplements: When a faculty member is appointed as department head, he/she receives an administrative supplement which increases his/her IBS. The department head’s administrative duties become part of the Full Workload. Similarly, other types of administrative supplements are included in IBS and the duties become part of the Full Workload.

2.    Contingent faculty

4.    Part time employees

5.   Graduate assistants

6.   Adjunct faculty

7.  Temporary and casual employees

8.  Student employees  

Institutional Base Salary does not include Incidental Work and other forms of compensation:

1.   Overload assignments

2.   Additional assignments

3    Interim assignments

4.   Collectively bargained longevity

5.   Collectively bargained bonuses

6.   Cell phone and other allowances

Compensation is governed by collective bargaining agreements for represented employees and the non-represented employee handbook for non-represented employees.

Roles and Responsibilities      

Financial Directors/Principal Investigators/Program Directors: Financial Directors/PIs are responsible for understanding the components and total amount of IBS (and associated 100% effort).  For externally funded projects, the Financial Manager and/or Principal Investigator are responsible for outlining IBS appropriately on all proposals and budgets. 

Deans, Department Heads and Directors: Deans, Department Heads and Directors are delegated responsibility to review and approve activities that determine a Full Workload for full time faculty, including the components and total amount of the IBS (and associated 100% effort) within his/her department, and assist Financial Mangers/PIs with outlining IBS appropriately on proposals and budgets for external funding. 

Oversite: Research Office and the Controller Office are responsible for verifying that proposals and budgets for external funding include components and total amount of IBS (and associated 100% effort) have been appropriately outlined and have been verified by the appropriate Department Head and Deans/ Department Director.

Human Resources/Payroll: Human Resources/Payroll is responsible for maintaining the correct amount of Institutional Base Salary in Banner Human Resource System NBAJOBS/NBAJFTE, and for providing written documentation to employees for changes to IBS if not addressed through the relevant collective bargaining agreement or non-represented employee handbook.  Human Resources/Payroll is responsible for processing compensation using the correct earning and account codes.