Original Memorandum (PDF) and form (PDF)
TO: Deans, Directors, Chairs and Principal Investigators
FROM: Dr. Susan Wyatt Sedwick, Associate Vice President for Research and Director, OSP
DATE: February 6, 2012
SUBJECT: Summer Salary Exceeding the NIH Salary Cap
Annually, Congress legislatively mandates a provision limiting (capping) the direct salary that an individual may receive under an NIH grant. For numerous years, they have restricted the amount of direct salary to Executive Level I of the Federal Executive Pay scale. However, effective with awards issued on or after December 23, 2011, direct salary is now restricted at Executive Level II of the Federal Executive Pay scale. The Federal Executive Pay scale is revised annually with an effective period of January 1 through December 31. For awards issued prior to December 23, 2011, the Executive Level I rate was established at $199,700/yr ($16,642/mo). For calendar 2012 awards issued on or after December 23, 2011, the Executive Level II rate $179,700 ($14,975/mo). [Note: During this transition year, it is conceivable that a faculty member with more than one NIH award could be subject to different capped amounts.]
NIH guidance is available at: http://grants.nih.gov/grants/guide/notice-files/NOT-OD-12-035.html
Due to these limitations imposed by the National Institutes of Health (NIH) on the ability to fully recapture salary on grant and cooperative agreement awards and extramural research and development contract awards, the University has created a pool to assist faculty who have 1) a base salary that exceeds the NIH Salary Cap; and 2) no other source of funds available to cover the portion over the cap. Academic year salary exceeding the NIH Salary Cap should be covered by the faculty salary line.
Faculty who meet the above criteria should request consideration of coverage for the portion of salary over the cap by 5:00 PM on Friday, March 16, 2012. Requests should be made on the following form and submitted to:
Jason Richter, Associate Director
Office of Sponsored Projects
oa.jrichter@austin.utexas.edu
The University support is intended to cover summer salary for faculty with no other available resources only during the period of time they are appointed to an NIH funded account. Should circumstances change that results in a reduction of an appointment to an NIH funded account subsequent to a request and approval for coverage, the Principal Investigator is responsible for making the corresponding reductions to the appointment related to the institutional coverage.
Should circumstances change that results in an increase of their appointment to an NIH funded account subsequent to a request and approval for coverage, the Principal Investigator is responsible for making an additional request for coverage. The additional request is not guaranteed and will be considered based on available institutional funds.
Should you have questions regarding the new process, please feel free to contact effort@austin.utexas.edu.