Discussions with Associate Dean should begin in the academic year prior to the award period. Once an agreement is reached and documented, the particulars should be forwarded to the budget office.
In addition to working with the Associate Dean and the budget office for subvention of the award, the faculty member must also complete the College’s standard Leave form, which is available here (Word document).
Award is received through Office of Contracts and Grants (OCG)
These awards are handled like most other contracts and grants such that the entire payroll goes through the university payroll system. This is the least complicated method.
- Faculty member works with OCG to accept award into the university.
- If award pays for salary but no benefits, ensure that OCG is aware and confirms that information for the file (to ensure that benefits continue to be charged to the university’s general fund and not the award).
The budget office does a “funding distribution” to charge a portion of the salary to the award speed type and the remaining salary to the normal academic year salary speed type. All salary is paid through the university payroll system. Retirement benefits are unaffected.
Award paid directly to the faculty member
When an award requires that the salary be paid directly to the faculty member, A&S will reduce the faculty member’s academic year by the amount of the award. The reduction in CU salary results in the faculty member losing the associated 10% retirement benefit. The process below compensates for that lost retirement benefit by paying it out as salary. The faculty member then has responsibility for depositing the additional salary into a retirement plan.
1. Ensure actual award documentation forwarded to the A&S budget office. In consultation with Associate Dean, identify the time frame of the award, portion of the award considered salary, and the payout cycle of the award.
2. If award is paid in a foreign currency, identify an appropriate currency conversion date.
3. Budget office prepares worksheet to calculate the adjusted CU salary relative to the award (see attached example).
4. Budget office meets with faculty member to discuss worksheet and how the adjusted salary is calculated. Discuss the additional funds paid as salary to compensate for lost retirement benefits as well as the faculty member’s responsibility to deposit those dollars into a 403(b) tax deferred retirement plan.