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Business and Finance

Discretionary Allocations and Salary Supplements for Distinguished Professors, Named University Professors, Named Professors, and University Faculty Scholars (II.C.3)

Volume II: Business and Finance
Chapter C: Payroll
Issuing Office: Office of the Provost
Responsible Officer: Provost
Responsible Office: Office of the Provost
Originally Issued: February 2, 2004
Most Recently Revised: November 18, 2011

TABLE OF CONTENTS

STATEMENT OF POLICY

Faculty named as distinguished professors, named University professors, named professors, and University faculty scholars should receive an allocation of discretionary funds to actively support their efforts in discovery, learning, and engagement. From the discretionary fund allocations, vice presidents, vice provosts, and deans may choose to provide salary supplements to the designated faculty.

REASON FOR POLICY

This policy establishes guidelines for allocating discretionary funds and providing Salary Supplements for Distinguished Professors, Named University Professors, Named Professors, and University Faculty Scholars.

This policy will apply to all new appointments of Distinguished Professors, Named Professors, and University Faculty Scholars. Appointments existing at the original issue of this policy will be included at the discretion of the vice president, vice provost, or dean of the respective unit and as outlined below. Faculty members designated as Named Professors at the original issue date of this policy were reclassified as Named University Professors and were considered as existing appointments for purposes of administration of this policy.

WHO SHOULD KNOW THIS POLICY

  • President
  • Provost
  • Vice Provosts
  • Chancellors
  • Vice Chancellors
  • Vice Presidents
  • Deans
  • Directors/Department Heads/Chairs
  • Faculty
  • Business Services Staff

RELATED DOCUMENTS

Appointments of Distinguished Professors, Named University Professors, Named Professors, and University Faculty Scholars (University Policy VI.C.1)

Approved Proposal to Establish a University Faculty Scholars Recognition Program

Guidelines for Naming Opportunities and Endowed Funds for the West Lafayette Campus (Policy WL-8)

CONTACTS

Subject Contact Telephone E-mail
West Lafayette      
President's Office Greg Kapp (765) 494-9708 gkapp@purdue.edu
Provost's Office Rebecca Franklin (765) 494-6835 rfranklin@purdue.edu
Calumet      
Chancellor's Office Lori Durham (219) 989-2203 durham@calumet.purdue.edu
Fort Wayne      
Chancellor's Office Sally Uchtman (260) 481-6103 uchtman@ipfw.edu
North Central      
Chancellor's Office Debbie Nielsen (219) 785-5332 dnielsen@pnc.edu

DEFINITIONS

Discretionary Allocations

Funds provided to designated faculty to support their discovery, learning, and engagement efforts. The faculty member may use the funds for any allowable University expenditure.

Distinguished Professor A special recognition bestowed on a select few professors of outstanding accomplishment who have achieved national and international prominence. Conferring the title of distinguished professor requires a rigorous academic review and appointment by the Board of Trustees.
Named Professor A title that recognizes a professorship supported by external funding as outlined in the University's Guidelines for Naming Opportunities and Endowed Funds for the West Lafayette Campus (WL-8) or an equivalent funding plan. A named professorship is not an academic designation, although holders would normally be individuals of high accomplishment. Faculty of the rank of assistant, associate, or full professor can hold a named professorship.
Named University Professor The transitional title for faculty who received named professor appointments under the prior University policy that bestowed this title as an academic recognition similar to distinguished professorships.
PRF Distinguished Professor Salary Allocation An annual salary payment provided by Purdue Research Foundation (PRF) to distinguished professors. The payment is made through the University and is in addition to the University recurring salary.
Salary Supplements

Funds provided on an annual basis to designated faculty from their discretionary allocations as a supplement to their base salary.

University Faculty Scholar The designation that recognizes outstanding faculty members at the West Lafayette campus who are on an accelerated path for academic distinction. Eligible faculty must hold the rank of tenured associate or full professor and have been in that rank for no more than five years. New hires appointed with tenure are also eligible

PROCEDURES

Discretionary Allocations — New Appointments
For all new appointments of Distinguished Professors, Named Professors, and University Faculty Scholars, discretionary funding should be established at the minimum levels listed below. Each vice president, vice provost, or dean will determine the maximum discretionary amounts by classification for his/her unit, as well as the limits for accumulating funding from year to year. Minimum funding levels are as follows:

  • Distinguished Professors — The initial minimum annual Discretionary Allocation should be $20,000 including the PRF Distinguished Professor Salary Allocation. The Discretionary Allocation will be continued each year subject to satisfactory performance reviews (see section on Faculty Review).
  • Named Professors — The initial minimum annual Discretionary Allocation should be $10,000. The allocation will be continued each year subject to satisfactory performance reviews (see section on Faculty Review).
  • University Faculty Scholars — An annual allocation of $10,000 for the five-year award period will be provided under the program for University Faculty Scholars.

Discretionary Allocations — Existing Appointments
Funding arrangements can be continued for Distinguished Professors and Named University Professors appointed prior to the original issue of this policy. At the option of the vice president, vice provost, or dean, the funding levels set within this policy can be used. The minimum funding level for Named University Professors will be the same as for Named Professors. The allocation for University Faculty Scholars remains at $10,000 per year.

Source of Funding for Discretionary Allocations
The source of funds for the Discretionary Allocation can be endowment distributions, gift funds, general funds, or other funds as is allowable and available. Sponsored program funding is not an allowable source of support. If endowment distributions are insufficient to support the Discretionary Allocation, other allowable funds can be used at the discretion of the vice president, vice provost, or dean.

Salary Supplements
As detailed in the Statement of Policy, Discretionary Allocations may be used for the payment of Salary Supplements to Distinguished Professors, Named University Professors, Named Professors, and University Faculty Scholars.

The level of the Salary Supplement for a faculty member will be determined by the vice president, vice provost, or dean; in the case of a vice president, vice provost, or dean, by the provost or the chancellor. The annual supplement must be within the following limits:

  • Distinguished Professors — Up to the equivalent of one-tenth of the base academic year salary or up to the equivalent of one-twelfth of the base fiscal year salary (base salary excludes the PRF Distinguished Professor Salary Allocation). The PRF Distinguished Professor Salary Allocation is considered part of the Salary Supplement and counts toward the maximum allowable payment.
  • Named University Professors and Named Professors — Up to the equivalent of one-tenth of the base academic year salary or up to the equivalent of one-twelfth of the base fiscal year salary.
  • University Faculty Scholar — Up to $5,000, not to exceed the equivalent of one-tenth of the base academic year salary or up to the equivalent of one-twelfth of the base fiscal year salary. This allows up to one half of the faculty scholar allocation to be used as a Salary Supplement.

Payroll Process
Salary Supplements will be paid in 10 equal installments for academic year faculty and 12 equal installments for fiscal year faculty. Payments will be made via the normal payroll process and included in the regularly scheduled paychecks. The payments will be classified as taxable compensation and subject to normal employment and income taxes. As Salary Supplements are not considered part of base compensation, TIAA contributions will not be made on these amounts. In addition, other benefits that are normally calculated on the base salary will not be earned on the Salary Supplement.

It should be clearly communicated to the recipients of these payments that they are nonrecurring, and thus, subject to annual review and performance. The faculty should also understand the basis for benefits and taxability of these payments.

Faculty Review
Each vice president, vice provost, and dean will establish a review process for Distinguished Professor, Named University Professor, and Named Professors to assess whether their performance and contributions to the mission and vision of the school or unit merits continuation of the Salary Supplement and/or the Discretionary Allocation. This process will allow for Salary Supplements and/or Discretionary Allocations to be increased or decreased when performance warrants such action. The review will be conducted on a recurring cycle to occur at least once every five years. This process of periodic review can be applied to those faculty holding these appointments at the original issue of this document. However, the existing Discretionary Allocations will not be affected. A similar review can be conducted for University Faculty Scholars at the discretion of the vice president, vice provost, or dean.

Approval Process
Each vice president, vice provost, and dean should submit for provost approval the school or unit's written plan for allocating discretionary funds, for awarding Salary Supplements, and for reviewing appointments under this policy. The chancellors will approve plans at their respective campuses. The plan should include the following:

  • The school or unit's established Discretionary Allocation for each type of professorship, including the required minimum and proposed maximum amounts;
  • The established levels of salary supplementation, including both minimums and maximums; and
  • A general description of the review process and the criteria for increases and decreases in the discretionary accounts and Salary Supplements.

Salary Supplements will be an annual determination effective with the beginning of each fiscal year. The supplements will be reviewed by the vice president, vice provost, or dean and submitted for approval by the provost with the submission of the unit's annual operating budget. The chancellors will approve supplements for the regional campuses. Salary Supplements will be considered outside of the budget process only in the case of a new appointment that begins other than at the start of the fiscal year or academic year.

SPECIAL SITUATIONS

Any deviation from this policy requires approval by the provost.

RESPONSIBILITIES

The roles listed below are responsible for the following tasks:

President:

  1. Approving the policy on Discretionary Allocations and salary supplementation
  2. Approving Salary Supplements as recommended by the provost for any direct reports to the provost or by the chancellors for any direct reports to the chancellors

Provosts and Chancellors:

  1. Approving school and unit's written plans for implementation of this policy
  2. Approving exceptions to this policy
  3. Recommending Salary Supplements for vice presidents, vice provosts, and deans

Administrative Officers reporting to the Provost:

  1. Determining the maximum discretionary amounts by classification for their school/unit
  2. Determining levels of Salary Supplements
  3. Establishing a review process for Distinguished, Named University, and Named Professors to assess performance and contribution
  4. Submitting a written plan detailing the above three items to the provost or chancellor
  5. Communicating the approved guidelines to the directors/department heads/chairs within their area

HISTORY

November 18, 2011: Policy number changed to II.C.3 (formerly IV.5.3).

October 15, 2007: Contacts section updated, defined terms capitalized throughout, and language about initial implementation removed.

February 2, 2004: This policy is the first to formalize guidelines for discretionary allocations and salary supplementation for distinguished professors, named University professors, named professors, and University faculty scholars.