Change to Research-Funded 12-Month Faculty Conversion Process
Following a review of Virginia Retirement System (VRS) requirements regarding creditable compensation, the University is updating how research-funded 12-month faculty conversions are administered.
The research-funded conversion process was originally established to allow eligible summer research compensation to be incorporated into a faculty member's annual contractual salary for retirement purposes. Under the revised retirement treatment, however, research-funded conversion compensation is not included in the salary used to calculate retirement contributions. This applies to the University's retirement programs, including the Optional Retirement Plan (ORP); employer contributions are based on eligible base salary rather than the additional research-funded conversion amount.
As a result, faculty do not receive the retirement contribution benefit from the additional conversion salary that the process was originally intended to provide. Accordingly, the research-funded 12-month faculty conversion process is being discontinued.
What This Means for Faculty
This change does not affect a faculty member's ability to receive allowable summer salary from sponsored projects.
Faculty on academic-year appointments may continue to receive summer salary supported by sponsored projects, subject to sponsor requirements, available funding, the faculty member's Institutional Base Salary (IBS), and applicable University summer salary requirements.
Going forward, sponsored-project summer salary will be requested and processed through the ºÚÁϲ»´òìÈ Research Foundation's regular summer salary process using the ePAS in the ºÚÁϲ»´òìÈ Research Portal, rather than through a research-funded conversion to a 12-month appointment.
Faculty with Current Research-Funded Conversions
Faculty with an approved current research-funded conversion do not need to take any action. Approved faculty compensation will continue to be paid as scheduled. However, consistent with the revised retirement treatment, the additional research-funded conversion compensation will not increase the salary used to calculate retirement contributions.
The Research Foundation will adjust the sponsored-project charges associated with current conversions to reflect the appropriate treatment of summer salary and applicable fringe. As a result, some funds previously budgeted for fringe may be returned to the sponsored project.
For projects that ended during the summer period, these adjustments may result in a remaining project balance at closeout. The return of funds to a project as a result of this change does not extend the award's period of performance or otherwise authorize additional expenditures. The Research Foundation will not process expenditures, transfers, or other reallocations for the purpose of spending down residual balances resulting from these adjustments.
These adjustments will be made by the Research Foundation and University and do not require faculty action. Any resulting project balances remain subject to the award's period of performance, sponsor requirements, and other applicable terms and conditions.
Faculty with questions about the impact of these adjustments on an individual sponsored project, including whether a budget adjustment is appropriate within an active award, should contact their Research Foundation Grants & Contracts Administrator. Questions regarding sponsored-project summer salary may also be directed to the faculty member's Research Foundation Grants & Contracts Administrator.
Looking Ahead
The ºÚÁϲ»´òìÈ Research Foundation will no longer process new research-funded 12-month faculty conversions. Faculty planning summer research activities supported by grants or contracts should use the standard sponsored-project summer salary process.
Proposals Currently in Development
To minimize disruption to proposals already in the final stages of preparation, proposals with sponsor deadlines within five business days of the effective date of this change may proceed using budgets that have already been finalized under the current research-funded conversion process. Faculty and departments do not need to reopen or revise an otherwise finalized proposal solely as a result of this implementation change.
If such a proposal is subsequently selected for funding, the Research Foundation will review the proposed budget prior to award establishment and make, or coordinate with the sponsor on, any adjustments necessary to reflect the University's current summer salary and fringe treatment. Any adjustment will be made in accordance with sponsor requirements and applicable prior-approval requirements.
For proposals with sponsor deadlines beyond the five-business-day transition window, budgets should be prepared using the standard sponsored-project summer salary process and applicable fringe rates.
Requesting Future Summer Salary
Faculty seeking summer salary support from sponsored projects should initiate an ePAS through the ºÚÁϲ»´òìÈ Research Portal. To ensure timely processing, summer salary requests must be submitted during the annual enrollment period, which opens April 1 and closes May 5 of each Academic Year.
Summer salary is calculated using the faculty member's IBS and academic-year appointment:
- For a nine-month appointment, one month of full-time summer salary equals 1/9 of IBS.
Faculty may ordinarily receive up to 2.5 months of summer salary from one or more sponsored projects during the designated summer period. Requests exceeding 2.5 months, up to the applicable maximum, require advance approval by Chair/supervisor and must be supported by sufficient available effort and the terms and conditions of the sponsored project(s).
Additional guidance on summer salary calculations, requirements, and the ePAS submission process will be provided by the ºÚÁϲ»´òìÈ Research Foundation.
The ºÚÁϲ»´òìÈ Research Foundation will also hold an open forum to review these changes, explain the summer salary process going forward, and answer faculty questions. Additional information regarding the date and time of the forum will be provided separately.
Questions regarding sponsored-project summer salary may be directed to your Research Foundation Grants & Contracts Administrator.
FAQ - Fringe Adjustment for Current Awards
On my current award, I received research-funded conversion compensation during the previous summer. I understand the fringe treatment will change. What fringe rate will apply to that summer compensation?
The Research Foundation will adjust the fringe charged to the sponsored project to reflect the applicable fringe treatment for summer salary. The revised fringe rate will be approximately 7-9%, representing applicable statutory fringe costs, rather than the fringe rate previously applied through the research-funded conversion process.
The Research Foundation will make this adjustment directly. Faculty do not need to take any action. Any resulting reduction in fringe expense will be returned to the sponsored project, subject to the award's period of performance and applicable sponsor terms and conditions.