University of California, San Francisco
School of Pharmacy
Implementation Procedures
for the
Health Sciences Compensation Plan



I.  Preamble

The Health Sciences Compensation Plan (Regents' Plan) was approved by The Regents of the University of California in July 1999 for implementation at all University of California health sciences schools. In accordance with the Regents' Plan, the President issued Guidelines on Occasional Outside Professional Activities by Health Sciences Compensation Plan Participants. These UCSF School of Pharmacy Implementation Procedures for the Health Sciences Compensation Plan (Procedures) provide supplementary regulations for implementation of the Plan at the San Francisco campus (UCSF) School of Pharmacy.

In adopting these Procedures, the faculty and administration of the School of Pharmacy at UCSF affirm the philosophy outlined in the Regents' Plan. The Regents' Plan and these 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 the School to fulfill its missions at a level of excellence.

In addition to these Procedures, Plan participants are also subject to the requirements of other University policies including:

Information on the disclosure and disqualification requirements of the Political Reform Act of 1974 can be obtained from the UCSF Conflict of Interest Coordinator.

II.   Review and Approval Responsibility

The regulations included in the Regents' Plan are intended to provide a policy framework with which these Procedures are developed. Affected Plan participants and the School of Pharmacy Faculty Council shall be afforded the opportunity to review and comment on any proposed revisions to these Procedures. Any proposed revisions must be approved by the Dean of the School of Pharmacy, the Chancellor, and the President. Local implementation shall be administered by the Dean.

The President may approve individual exceptions to the provisions of the Plan to meet special teaching, research, or clinical service requirements. All such exception requests shall be proposed by the appropriate Department Chair and approved by the Dean and the Chancellor prior to the President's review. The School of Pharmacy Faculty Council shall be provided the opportunity to review and comment on any proposed exceptions to these Implementation Procedures that the Chancellor intends to submit to the President for approval.

III.  Membership in the Health Sciences Compensation Plan


A.  Membership Requirements

School of Pharmacy faculty members shall be members of this Plan if they hold a University-funded appointment at greater than 50 percent of full time in a School of Pharmacy department in any of the following title series:
  1. Professor
  2. Professor In Residence
  3. Professor of Clinical ____________(e.g., Pharmacy)
  4. Adjunct Professor
  5. Acting Professor
  6. Health Sciences Clinical Professor
  7. Visiting Professor
  8. Dean
  9. Any other title series approved for membership in this Plan by the President.
Membership in the Plan is a term and condition of employment. All new and continuing eligible Plan members shall receive a copy of the Regents' Plan document, these School Procedures and any related departmental guidelines. All members are subject to the rules described in the Regents' Plan and these Procedures. Each faculty member participating in the Plan shall sign the following statement regarding retention of income:

"I have read and accept the provisions of the University of California Health Sciences Compensation Plan and the UCSF School of Pharmacy Implementation Procedures and in accordance with the terms of my appointment, I understand that I may not individually incorporate nor retain any income from my professional services except as noted in these Procedures (see in particular Section IV.B.)."

B. Exceptions to Membership Requirements

Faculty members who are otherwise eligible for this Plan as defined above, but who have appointments of 50% or less of full time may participate in this Plan upon the recommendation of the Department Chair and approved by the Dean, Chancellor, and President.

IV.  Compensation

A. Total Compensation

Faculty members participating in this Plan shall receive base salary and shall be eligible for additional compensation, as described below.

No State funds shall be used for the portion of base salary that exceeds the Fiscal Year Salary Scales for the Plan member's rank and step or for optional additional compensation as described in Section 2, below. This portion of compensation shall be funded using Compensation Plan funds and other non-State funds in compliance with any related fund source restrictions.

1. Base Salary

Base salary for an individual is the approved rate on Scale 2 of the Health Sciences Compensation Plan Salary Scales, associated with that faculty member's academic rank and step. Scale 2 will be used by all of the academic program units in the School of Pharmacy. The base salary is covered under the University of California Retirement Plan (UCRP) up to the amount permissible under law and in accordance with UCRP provisions and regulations.

Scale 2 of the Health Sciences Compensation Plan Salary Scales will remain as the scale for base salary for all faculty members in the School of Pharmacy until the Dean, Chancellor and President approve a change.

2. Optional Additional Compensation

The amount of additional compensation shall be based upon the recommendation of the Department Chair and approved by the Dean. Additional compensation may be paid, in accordance with fund source restrictions, as follows:

  1. Negotiated additional compensation ("Y")

    Plan members may receive a negotiated amount of additional compensation. This component of pay is beyond the base salary and is not covered compensation for the University of California Retirement Plan, but may be eligible for optional disability and life insurance programs. Additional "Y" compensation shall be negotiated by the individual and his/her Department Chair and approved by the Dean on an annual basis. The negotiated additional compensation is paid monthly. Factors considered when determining negotiated additional compensation include, but are not limited to, academic performance, quality of work, and productivity in the areas of teaching, scholarly activity, clinical activity, research and service.

  2. Incentive/bonus compensation ("Z")

    Plan members may earn incentive/bonus compensation beyond base and negotiated additional compensation. This component is not covered compensation for the University of California Retirement Plan. Incentive/bonus compensation will be paid to faculty through the University payroll system, will be subject to Federal and State withholding, and will be reported on a W-2 form as wages. Incentive/bonus compensation will be determined and paid, if approved, each month. Incentive/bonus compensation is determined and approved by the Department Chairs with the Dean's concurrence. A major factor considered when determining incentive/bonus compensation is revenue generation from consulting, professional witness activities and other similar types of professional activity that generates revenue due to the Compensation Plan. Another factor considered when determining incentive/bonus income is the amount of funds, if any, that the Department Chair determines should be set aside for an academic enrichment fund to support faculty research activities and/or employee development.
B. Other Miscellaneous Income Which May be Retained by Plan Members

Plan members shall not retain any income from professional services (i.e., activities related to the training and experience which is the individual's qualification for University appointment) except from the categories of income accruing from occasional service described below. Professional income includes both cash and non-cash compensation, such as stock and stock options received for professional service.

  1. Income from 21 days of service (other than patient care) per fiscal year to governmental agencies, to non-profit health- or education-related organizations, to continuing health education programs administered by the University, or to University Extension.
  2. Prizes, defined as gifts in recognition of personal achievements and not for services rendered.
  3. Royalties, defined as shares of proceeds for contributions as authors or inventors, as allowed under the University's copyright and patent policies.
  4. 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.
  5. Administrative stipends, defined as payments by the University for responsibilities related to University administration beyond normal academic responsibilities.
  6. Income from a profession or activity unrelated to the training and experience which is the individual's qualification for University appointment as determined by the Department Chair in consultation with the Dean.
C. Limitations on Use of University Resources in Connection with Outside Professional Activities

The use of University staff, laboratories, facilities, or other University resources in connection with outside professional activities is subject to limitations. The Faculty Code of Conduct, Part II, C. lists the unauthorized use of University resources or facilities on a significant scale for personal, commercial, political, or religious purposes as a type of unacceptable conduct (see Academic Personnel Policy 015, Section II). In general, when faculty retain income from professional consulting or expert witness activities, particularly when the activities are conducted for third party for-profit entities or private individuals, the cost associated with the consulting or witness activities should 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. Questions about the appropriate use of University resources and coverage under University liability programs should be discussed with the faculty member's department head, who may consult with the Dean. The Dean will, if necessary, refer the questions to other appropriate University officers.

D.  Reporting, Monitoring and Enforcement
Each plan participant shall be required to submit to his/her Department Chair an annual report describing the previous year's outside professional activities from which the Plan participant retained income and an attestation of adherence to these procedures. The annual report will incorporate reporting requirements described in APM 025-10 - Guidelines for Reporting Outside Professional Activities. It is the responsibility of the Department Chair to file and retain these reports for five years.

The primary means of monitoring compliance will be review by Department Chairs of information provided by the faculty member in annual reports on outside professional activities. If a Department Chair has any concerns about whether a Plan member is meeting the established standards, the matter should be referred to the Dean's Office. The responsibility for oversight of the outside professional activities of Department Chairs resides with the Dean.

The School of Pharmacy Faculty Council which includes faculty representation will assist the Dean in resolving issues on outside professional activities. The committee's charge is described in detail in Section VI of these Procedures.

The University reserves the right to take corrective action and disciplinary measures against any Plan member who fails to comply with the Plan and these Procedures. Situations where Plan members will be considered out of compliance include, but are not limited to:
If the Department Chair or the Dean has reason to believe that a Plan member has not complied with these procedures, the Dean may take appropriate corrective action. Corrective action refers to the discontinuation of certain privileges available only to Plan members, in particular the opportunity to earn and receive compensation above the fiscal year salary scale through the Plan, because of noncompliance. For example, corrective actions may include:

Reductions in compensation are not always the result of corrective action and may also occur for other reasons such as insufficiency of current year income and contingency reserves (see Procedures Section VII.D.). Whenever reductions in compensation are the result of corrective action, faculty shall be so notified in writing.

In addition, corrective action will not preclude sanctions or disciplinary measures in accordance with the Faculty Code of Conduct and Academic Senate Bylaws. Violations by Plan members of the time limits on outside professional activities represent an unauthorized use of University resources and/or retention of funds belonging to the University. Such violations are subject to discipline in accordance with the Faculty Code of Conduct.

An Academic Senate member who is subject to corrective action has available to him or her a grievance process through the Privilege and Tenure Committee as described in Academic Senate Bylaw 335. Other faculty may grieve through the provisions of Academic Personnel Policy 140.

V.  Benefits

A. Base Salary-Related Benefits

Base salary-related benefits are associated with an individual's salary from one of the Health Sciences Salary Scales. Scale 2 is the salary scale used in the School of Pharmacy. 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-related 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 faculty.

B. Optional Benefits on Additional Compensation

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. The School of Pharmacy purchases long term disability insurance to cover negotiated additional compensation.

C. Paid Leave

Compensation during approved sabbatical leave and vacation leave shall be calculated at the total negotiated salary rate. Plan members may request paid leave for disability. Subject to proof of disability, compensation during paid leave for disability is provided at the total negotiated salary rate for the first 90 days of disability and at the base salary rate for the following 90 days of disability. The Department Chair with concurrence from the Dean may approve leave with pay for various other reasons. The salary rate may be either the base salary rate or the total negotiated salary rate depending on the nature of the leave.

VI.  Grievance Procedures for Plan Members

The School of Pharmacy Faculty Council will serve the role of the advisory committee to the Dean in 1) resolving issues on outside professional activities which arise from the implementation of these Procedures, 2) advising the Dean on School of Pharmacy implementing procedures, and 3) advising the Dean on faculty grievances with regard to the implementation and administration of these procedures.

Faculty who wish to file a formal complaint about issues related to outside professional activities should write a letter to the Associate Dean - Academic Affairs who will undertake fact-finding and will then present the case for consideration by the Faculty Council. Both the complainant and the complainant's Department Chair will have the right to be heard by the Council. The Council will issue a formal recommendation on resolution for consideration by the Dean.

To ensure that the formal complaint process is fair and impartial, the Associate Dean - Academic Affairs, and/or other committee members, shall excuse themselves from deliberation of any single complaint if the committee member has already participated in an administrative review of the action being considered in the grievance process.

VII.  Accounting and Budgeting Methods


A. Management and Reporting of Professional Services Income and Expenses

All professional services income generated by Plan members shall be managed by, accounted for and reported as revenue of the University; the only exception to this requirement shall be income, which the Plan participant is allowed to retain in accordance with Section IV.B. All income owed the University must be deposited into the revenue account of the School's compensation plan fund number 60141 or a departmental compensation plan fund if established subsequent to approval of these Procedures. For payments made directly to the individual faculty member and owed to the Plan, the check should be endorsed payable to the University and deposited in the same fund. Documentation of the deposit will be provided to the faculty member.

All compensation paid by the University to Plan members will be subject to Federal and State withholding and reported on a W-2 form as wages. All financial transactions shall be approved, documented, and otherwise processed or executed in accordance with University, campus and School of Pharmacy policies, procedures and delegations of authority.

All of the income and expenses associated with the Plan will be accounted for in accordance with the University of California Accounting Manual Policies and Practices.

B. Fund Accounts and Sources

Compensation Plan fund account(s) have been established in the School of Pharmacy. All fund accounts shall be separate University accounts and shall receive Plan income from the following sources:

  1. Income from professional services due the University.

  2. Amounts paid by University hospitals or affiliated institutions for professional and managerial services rendered to the hospitals by participants in the Plan, excluding stipends in IV.B.6.

  3. Such other funds as are required by the Chancellor or President to be included in fund accounts.

Certain other sources of University income may be available to support faculty compensation and benefits but are not recorded in Compensation Plan fund accounts, such as:
  1. Funds made available for salaries from University-administered grants and contracts.

  2. Funds made available from unrestricted, non-State fund accounts within the school.

  3. Gifts and other funds available for such purposes, as allocated by the Dean or Chancellor.
C. Assessment of Professional Services Income
Rate(s) annually recommended by the Dean in consultation with the School of Pharmacy Faculty Council and approved by the Chancellor for the school shall be applied against income from professional services. The income categories specified in Section IV.B. are not subject to assessment.

D. Contingency in Event of Inadequacy of Health Sciences Fund Accounts

The School of Pharmacy will establish a reserve fund to provide the funds necessary to pay Plan expenses, including the agreed upon compensation to each plan participant, in the event that the current year income of the Plan is insufficient to do so. In the event that there are insufficient funds in the reserve fund to cover the costs of the Plan, the Dean and the Chancellor may seek support from another non-State fund account(s) within the School of Pharmacy. If such support is not forthcoming, then the campus will reduce the participants' additional compensation in a uniform manner in accordance with any fund source restrictions across the School or department as determined by the Dean and Chancellor.

E. Budgeting

All of the funds and transactions associated with this Plan will be accounted for in accordance with the applicable sections of the University accounting manuals.

The Dean of the School of Pharmacy shall develop an annual budget projecting income and expenses for the School of Pharmacy compensation plan funds. Expenditures shall be budgeted for and funded in the following order of priority:

  1. Clinical practice operating expenses, defined as costs incurred by the University for billing and collection of fees for clinical services (at this time, the School does not have these expenses); for faculty use of University-owned and/or -leased practice facilities (at this time, the School does not have these expenses); and for related professional operating activities.

  2. To the extent that funds remain after expenditures for clinical practice costs indicated in 1., compensation may be paid to eligible participants in the Plan. Base salary and related benefits, including any required contribution on behalf of University of California Retirement Plan covered compensation, shall be funded before additional compensation.

  3. To the extent that funds remain after the foregoing expenditures, benefits approved in accordance with Sections V.B. and V.C. may be paid.

  4. To the extent that funds remain after all the foregoing expenditures, funds shall be contributed to the reserve(s) for contingencies in an amount recommended by the Dean and approved by the Chancellor.

  5. When a School of Pharmacy compensation plan fund account has accumulated a surplus beyond that required for expenditures and reserves as provided in all the above categories, the surplus shall be used as follows:
    1. At least one-half for academic purposes in the department of origin (including but not limited to salaries for support personnel) as recommended by the Department Chair and approved by the Dean;
    2. The remainder may be used for other purposes in the school or campus as recommended by the Department Chair and the Dean and approved by the Chancellor.

VIII.  Implementation and Transition Arrangements

These procedures are developed in accordance with the Regents' Plan approved by The Regents in July 1999 and supersede any previous implementation. These procedures will be effective March 1, 2001 after approval by the President.