Objective

This procedure establishes guidelines for faculty research incentive plans.

Scope

The purpose of the research incentive plan (RIP) is to enhance the quantity and quality of externally funded research by incentivizing faculty. The mechanism for doing so is to provide a salary supplement in the form of a yearly bonus for faculty who are effective in securing extramural funds while maintaining their other scholarly responsibilities. The RIP is particularly relevant as a recruitment tool and means of retaining highly productive faculty. Additionally, it is intended to stimulate scholarly activity associated with performing externally funded research.

Units are permitted to establish criteria for implementing their own customized plans. The overarching goals are to:

• Increase the quality and quantity of externally funded research,
• Increase funding for graduate research assistants, and
• Increase scholarly publications and activities.

Department Heads or Center Directors will develop plan documents and models used to calculate the incentive pay. Plan documents must be approved by the Dean, Vice Chancellor for Research and Sr. Vice Chancellor for Finance & Administration. Plan documents must be distributed to the faculty and consistently applied across faculty in the unit. Incentive models may include a combination of research incentive funds and/or salary recovery. Plans will include a defined upper limit and the incentive pay must not exceed 20% of the 9 month pay for 9 month employees or 20% of the 12 month pay for 12 month employees. All plans will include assessment metrics and will be reviewed periodically to assess the attainment of program goals and ensure that high quality teaching, MS/PhD student productivity, and service activity engagement are maintained.

Procedure

1. Payment Elections
   
   Annually, by July 1st, the faculty member must complete the attached Faculty Incentive Plan Payment Election Form. These elections apply to the full period of upcoming earnings (7/1 – 6/30), which will be paid out in the following fiscal year.
   
   The faculty member may elect that all, or a portion, of the incentive payment be transferred to a research support fund in lieu of a salary payment. The waived funds will be transferred to a research support fund to be used at the university’s discretion. The election is irrevocable, must be made in writing to the department head and delivered by the first day of the applicable fiscal year annually (i.e. July 1st). If a department head makes the election, his or her supervisor must approve the form. An election will remain in effect for the entire fiscal year. Prior to the commencement of each subsequent fiscal year, a new written election, irrevocable for the following fiscal year, must be submitted or the default method of payment will be a salary payment. In order to allow for necessary recordkeeping and accounting reconciliation and reporting, a faculty member shall not have any earned, or vested, interest in an incentive (neither salary supplement nor research support funds) until the month of payment (fall semester). Faculty members must be on payroll during the month of payment in order to be eligible for an incentive under the plan.
   
   Moreover, a faculty member shall never have any earned or vested interest in research support funds which remain subject to use by the University, and no part thereof shall be paid or converted to salary or other reimbursement to said faculty member.
   
2. Incentive Payment Calculation
   At the end of the fiscal year, each faculty member will be evaluated to determine if eligibility requirements have been met in accordance with plan documents. If so, and contingent upon availability of resources within the unit, an incentive payment will be provided in the fall semester, no later than 12/31. Payment will be made per the Faculty Incentive Plan Payment Election Form. If a form is not on file, the default method of payment will be a salary payment. Faculty must be on payroll during the month of the payment. The payment is subject to withholding for appropriate taxes and benefits.
   
   Penalties/Disciplinary Action for Non-Compliance Failure to comply may impact eligibility to participate in the plan.

Campus Responsible Official & Additional Contacts

Subject Matter	Office Name	Telephone Number (xxx) xxx-xxxx	Email/Weh Address
Policy Clarification and Interpretation	AVC,F& A	(865) 974-1000	avcfinadmin. utk.edu
Policy Training	AVC, F&A	(865) 974-1000	avcfinadmin. utk.edu