Ucla School of Dentistry Implementation Procedures

July 2015

UCLA SCHOOL OF DENTISTRY IMPLEMENTATION PROCEDURES

UNDER THE

UC HEALTH SCIENCES COMPENSATION PLAN

I. ADOPTION

This document sets forth the implementation procedures (the “Procedures”) for the UCLA School of Dentistry Compensation Plan (the “DSCP”) under the University of California Health Sciences Compensation Plan (“HSCP”) and the Conflict of Commitment and Outside Activities of Health Sciences Compensation Plan Participants (“APM 671”). These Procedures supersede any previous UCLA School of Dentistry (“School”) procedures. These Procedures have been approved by the University of California Office of the President (“UCOP”), and made effective as of July 1, 2015.

In addition to these Procedures, members are also subject to the requirements of other University policies, including but not limited to, any and all applicable conflict of interest policies, including (1) the University’s Conflict of Interest Code, adopted pursuant to the requirements of the Political Reform Act of 1974, which requires designated University employees to disqualify themselves from participating in University decisions in which they have a personal financial interest; and (2) the Policy on Requirements to Submit Proposals and to Receive Awards for Grants and Contracts through the University. A faculty member’s compensated outside activities may create an obligation for the faculty member to disclose a financial interest before making, or participating in, certain University decisions. Faculty can obtain information on the disclosure and disqualification requirements of the Political Reform Act of 1974, including the Academic Decision Regulation, from the office of Campus Counsel.

The DSCP shall operate as a self-supporting program and shall not incur any additional costs to State funds.

II. DSCP COMMITTEE

The School has an established a DSCP Committee, which is advisory to the Dean on all matters pertaining to the development, administration, and policies arising from the DSCP, including but not limited to, academic programmatic units (“APUs”) and optional negotiated additional compensation as defined below. The committee shall consists of nine members, three of whom shall be elected for a 3-year term by members of the DSCP, through a process conducted by the Faculty Executive Committee (“FEC”), and three of whom shall be appointed by the Dean. In addition, the Assistant Dean of Administration and External Relations, the Assistant Dean of Finance, and the Director of Academic Personnel shall serve as ex-officio members without voting rights in an advisory capacity to the committee.

The DSCP Committee will assist in the review of all compensation plan matters, including compliance with and resolution of issues on outside professional activities, conflict of interest, and conflict of commitment. The committee shall also review all Subgroup[i] agreements and shall review and evaluate Subgroup finances and APU/Scale placement.

III. MEMBERSHIP

A. Eligibility

1. Members of the faculty of the School of Dentistry shall be members of the DSCP if they hold a University Funded appointment at greater than 50% in any of the following series: Professor, Professor-in-Residence, Professor of Clinical X (e.g., Dentistry), Adjunct Professor, Acting Professor, Health Sciences Clinical Professor, Visiting Professor, Health Sciences Dental School Dean, or any other professorial series approved for membership in the DSCP by the President of the University of California (“President”) or President’s designee.

2. If eligible, membership in DSCP is a term and condition of employment. All new and continuing eligible DSCP members shall receive a copy of the HSCP and these approved Procedures, and shall sign the following statement: “I have received a copy of the University of California Health Sciences Compensation Plan, the approved School of Dentistry Implementation Procedures and APM 671. I understand that the provisions in each of these documents constitute terms and conditions of my employment.”

3. A member of the faculty of the School of Dentistry who falls within the criteria in Section III.A.1, except that his or her University appointment is funded at 50% or less may be approved by the Dean to become a member of DSCP. If membership of a part-time appointment is approved, said member shall be required to make a full-time professional commitment to the University to the exclusion of all other professional activities that conflict and/or compete with the individual’s activities under the DSCP.

4. The Dean may approve membership in the DSCP for otherwise eligible faculty members who have retired and are recalled. Such appointments may not exceed a maximum total of 43 percent of full time per month. Refer to APM-205, Recall for Academic Appointees, for terms and conditions for Plan Membership for recall appointees.

B. Period Of Membership In DSCP

Membership shall continue while DSCP continues to be in effect. Separation from eligible appointments will terminate membership in DSCP.

C. Partnerships And Incorporation

DSCP members may not form partnerships, corporations, or any other type of business entity whose professional purpose or activity conflicts with or violates the Procedures, the HSCP, and/or any other terms and conditions of employment.

IV. COMPENSATION

A. Total Compensation

DSCP members shall receive a base salary (“X” and “X’”); shall be eligible for optional additional compensation (“Y”, “Z”); and shall be permitted to retain other miscellaneous income as set forth below. No State funds shall be used for the portion of base salary that exceeds the Fiscal Year Salary Scales (Scale 0), or approved off-scale equivalent for a DSCP member’s rank and step, or for optional additional compensation as set forth in Section C below. Generally, off-scale salaries are not allowed. This portion of compensation shall only be funded using compensation plan funds and other non-State funds in compliance with any related fund source restrictions.

B. Base Salary

Base salary (X and X’) for a member is the approved rate on one of the Health Sciences Compensation Plan Salary Scales associated with that faculty member’s academic rank, step, and APU. The base salary is covered under the University of California Retirement Plan (“UCRP”) up to the amount permissible under law and in accordance with UCRP provisions and regulations. Salary scales are assigned to APUs and may be changed pursuant to guidelines issued by UCOP.

1. Assignment to APUs within the School is recommended by the DSCP Committee and approved by the Dean. An APU is defined as a group of faculty with similar clinical, teaching, and/or research responsibilities.

2. Each APU shall have a minimum of four (4) members. All DSCP members in an APU shall be on the same scale. Any exceptions to these requirements are subject to the approval of the Chancellor or Chancellor’s designee.

3. Subject to the recommendation of the DSCP Committee and approval by the Dean:

(a) An APU may advance each successive fiscal year to the next highest salary scale on the table of health sciences salary scales, provided that there is sound fiscal evidence to conclude that net revenues will continue to be realized at a level sufficient to sustain the increase;

(b) An APU may be reassigned to a lower scale after a one-year period in cases where there has been a decrease in net revenues to a level insufficient to fund the previously approved scale; and

(d) The committee shall report annually to the Dean the names of individuals who have changed APUs.

C. Additional Compensation

Supplemental to the base salary, DSCP members in Good Standing (as defined below) may receive additional compensation in accordance with fund source restrictions as follows:

1. Negotiated Additional Compensation (“Y”). The Dean may negotiate an amount of additional compensation to be funded from any allowable fund source. This “Y” component shall be paid monthly in addition to the base salary and shall not be considered compensation for UCRP calculations.

2. Incentive/Bonus Compensation (“Z”). DSCP members may receive incentive/bonus compensation. Z compensation shall only be funded from fees for professional services (i.e., patient care fees, consulting fees, expert witness fees) and shall be paid only after the base salary obligation has been met.

(a) Distribution And Payment Of Z Compensation.

(i) Z payments are calculated and distributed on a quarterly basis (December 1st, March 1st, June 1st, September 1st).

(ii) Subgroup Z payments shall be distributed on the same quarterly schedule as above although they retain the flexibility to alter the payment schedule.

3. Administrative Stipends. With the approval of the Dean, DSCP members may receive administrative stipends, defined as payments by the University for responsibilities related to University administration beyond normal responsibilities.

D. Assessment Of Dean’s Tax On Professional Services Income

All income deposited into the DSCP is subject to a Dean’s tax. The Dean determines the assessment rate and schedule on an annual basis.

V. OTHER INCOME

A. Off-Campus Clinical Practice And Revenue

DSCP members are required to conduct their patient-care activities within the University setting, or as part of an approved affiliation agreement or professional services agreement. The Dean is authorized after consultation with the DSCP Committee, to permit an individual to engage in off-campus practice for one year. Permission may be granted, for example, if there is limited patient flow at the FGDP. Such permission must be renewed annually. All faculty practicing off-campus shall operate under a standard Professional Services Agreement.

All clinical income, including income from off-campus professional services, shall be deposited into the DSCP in accordance with these Procedures. Faculty who are permitted to practice off-campus under a Professional Services Agreement must make deposits of their patient fees in the FGDP account. In no case shall DSCP members be allowed to retain income from patient care activities.

Upon separation from the University (e.g., retirement or termination of membership in the DSCP), the individual gives up all rights to any and all account receivables not collected by the date of separation.

B. Outside Professional Activities Income

1. Obligations To The University. Outside professional activities, both compensated and uncompensated, may be undertaken by DSCP members. However, such activities must not conflict with a DSCP member’s primary professional obligations to the University as defined by the DSCP member’s faculty appointment. Any external activity with the potential to reduce the time and attention a DSCP member can devote to University responsibilities, and thus negatively impact his/her performance of assigned duties, constitutes a “conflict of commitment.”

2. Time Limits. DSCP members may devote up to 48 days annually to compensated and uncompensated outside professional activities, consistent with the time limits established for outside professional activities in APM 671-8b.

3. Annual Earnings Approval Threshold. Depending on the category of outside professional activities, the maximum annual earnings threshold shall be $40,000 or 40% of the fiscal-year base salary scale (scale 0), whichever is greater, for an individual faculty member’s rank and step. See APM 671-8c.

4. Exception Requests. If a DSCP member wishes to engage in an activity that might reasonably be expected to cause his/her time and/or total annual earnings from outside professional activities to exceed the annual approval threshold, then the DSCP member must request prior written approval to engage in the activity.

To request approval, the DSCP member must provide his/her Division Chair, in writing, the relevant details about the proposed engagement or schedule of engagement including: the nature of the services to be provided; the person(s) or entity(ies) who will receive and/or pay for the services; the anticipated period of service and/or the days to be devoted to the activity; the total expected income from the activity; and the amount by which the DSCP member’s total annual earnings from outside professional activities are expected to exceed the threshold. The Division Chair shall forward to the Dean or his/her designee any request which requires review by the Dean and/or Chancellor.

If the DSCP member receives approval to engage in the activity that may cause his/her time allotment and/or annual earnings from outside professional activities to exceed the approval threshold, the DSCP member must request the Division Chair’s approval for any subsequent engagements. If such engagements are approved, they shall be undertaken with all related income accruing to the DSCP unless an exception is requested and approved in writing.

However, only the Chancellor or the Chancellor’s designee shall have the authority to approve any request by a DSCP member to retain earnings that exceed the maximum annual outside professional earnings approval threshold set by the Provost and Executive Vice President.

5. Outside professional activities are grouped into categories according to their potential to raise conflict of commitment issues:

Category I

Category I activities possess the greatest possibility of creating a conflict of commitment because they utilize the DSCP member’s professional expertise and they require significant professional commitment directed to a third party. Activities in this category include, but are not limited to:

· Teaching, research, or administration of a grant at an educational institution, trust, organization, government agency, foundation, or other entity outside the University;

· Employment outside of the University;

· Assuming a founding/co-founding role of a company;

· Assuming an executive/managerial role; and

· Any other activity that possesses a greater potential for a conflict of commitment.

Category I activities require prior approval by the Dean and require disclosure in annual reporting. Category I activities count toward the DSCP member’s annual 48-day time allotment and the earned income counts toward the earnings approval threshold. All income earned from Category I activities that exceeds the earnings threshold is owed the DSCP even if the 48-day allotment has not been met.

Prior approval by the Dean for Category I activities is also required for DSCP members who are on periods of leave either with or without pay.

DSCP members during periods of leave either with or without pay also remain subject to the annual 48-day time allotment and the annual earnings approval threshold.

Category II

Category II activities are typically shorter term activities that are outside the course and scope of University employment and have less potential for a conflict of commitment. Activities in this category include, but are not limited to:

· Additional University-compensated teaching, including teaching for UNEX courses and programs (see APM - 662, Additional Compensation: Additional Teaching), Continuing Dental Education programs administered by the University; and Self-Supporting UC degree programs;[ii]