DETERMINING BASE AND/OR NON-BASE PAY FOR THE MSP STAFF PHYSICIAN
When determining base and/or non-base pay for the MSP Staff Physician please keep in mind that the base pay is the only salary component that is considered “covered” compensation for University of California Retirement System (UCRS) benefit purposes. To maintain appropriate alignment with Faculty Physicians, base pay should not exceed 70% of the combined base and non-base pay, up to the MSP Salary Grade maximum for the letter grade, i.e., B, C, or D (see chart below).
The only exception to the 70% figure for base pay, [as a percent of the total salary], would be if 70% of the total salary fell below the minimum for the MSP Salary Grade. The minimum of the MSP Salary Grade must be met.
MSP Salary Grades:
Titles Grades Minimum Maximum
Assoc Phys Diplomate D $139,400 $277,400
Assoc Physician C $111,500 $221,900
Assistant Physician B $89,200 $177.500
Example:
Associate Physician, MSP Grade C
Physician slotted at Staff Physician Grade 2
Total Compensation: $147,700 (maximum salary for SP/2)
70% of total salary is $103,390
Base pay minimum for an Associate Physician, MSP Salary Grade C is $111,500
Since the minimum for the MSP Salary Grade C is $111,500, this Staff Physician’s base pay will fall below the minimum. To meet the minimum, the base pay must exceed the 70% rule.
He would be implemented as follows:
Base Pay: $111,500
Non-Base Pay: $36,200
$147,700
Determination of Base Pay:
Base pay for School of Medicine Staff Physicians shall be assigned within the minimum and maximum of the MSP Salary Grade (B, C or D) pay ranges at the time of execution of the contract, consistent with “covered” compensation for Faculty physicians in the same department.
For example: The base salary for the MSP Staff Physician, with base pay only, hired as an Associate Physician, MSP Grade C, would be placed between the minimum of the MSP Grade C range of $111,500 up to the maximum of $221,900. However, when determining the base pay for the MSP Staff Physician the department should take into consideration what a Faculty physician’s “covered” compensation is for comparable work/responsibilities. It is critical that parity be maintained between the MSP Staff Physicians and the Faculty physicians in regard to “covered” compensation. For example: An Assoc Prof II at Scale 3 has “covered” compensation of $104,500. It would not be appropriate to hire the MSP Staff Physician, performing comparable duties, with “covered” compensation of $135,000.
Determination of Base and Non-Base Pay:
Non-base pay level determinations shall reflect relevant pay data by clinical specialty/subspecialty, in combination with such factors as base pay, internal departmental equity and departmental budgetary considerations. The Staff Physicians Slotting Structure or SPSS grades shall be used to represent a combination of the base and non-base pay components. The base pay portion should not exceed 70% of the combined base and non-base salary unless the 70% figure falls below the minimum of the assigned MSP Salary Grade (B, C. or D). The combination of base and non-base pay components shall not exceed the maximum of the Staff Physicians Slotting Structure assigned to the Department.
Examples:
Surgeon, Associate Physician, MSP Grade C
Physician slotted at Staff Physician Grade 7
Total Salary: $297,000
70% of total salary is $207,900
The base and non-base pay in his contract would be reflected as:
Base Pay: $207,900
Non-Base Pay: $89,100
$297,000
Maximum base and non-base pay would be: $297,000 (the maximum of the SPSS Grade 7)
Family Medicine, Associate Physician, MSP Grade C
Physician slotted at Staff Physician Grade 5
Total Compensation: $224,600
70% of total salary: $157,220
Base pay limit for an Associate Physician, MSP Salary Grade C, is $221,900
The base and non-base pay in his contract would be reflected as:
Base Pay: $157,220
Non-Base Pay: $67,380
$224,600
Maximum base and non-base pay would be: $224,600 (the maximum of the SPSS Grade 5)
Prior to providing the Staff Physician with base pay of $155,220 the department should review what faculty physicians are receiving for “covered compensation” to make sure parity is maintained for retirement calculations.
Rev. 113010