PIP Membership Meeting March 19, 2003

1
PIP Membership MeetingMarch 19, 2003
2
Agenda

• Approval of 1/31/03 meeting minutes
• Brief review of PIP allocation formula issue
• Brief review of PIP fringe costs issue
• Discussion of PIP policy committee plan
• School negotiated
• Member negotiated
• Elections

3
PIP Allocation Formula Issueschool negotiated
contracts

• Current Administration of PIP
• 20 of extramural contract salary and fringe
  benefits are allocated to the PIP members
  account
• Problem
• Inconsistent with TT accounting practices and
  perceived as double-dipping (PIP member
  receives 100 of fringe benefits from TT and 20
  of contracted fringe as a salary augmentation)
• Inconsistent with the research incentive program.

4
PIP Fringe Costs Issueschool member negotiated
contracts

• Current Administration of PIP
• When a PIP member elects to take money from
  his/her PIP account as salary augmentation,
  federally mandated fringe costs are absorbed by
  TT rather than deducted from the augmentation.
• Problem
• Inconsistent with PIP bylaws and TT accounting
  practices.

5
PIP Policy Committee PlanIf approved, to be
implemented 8/1/03

• School negotiated contracts
• Change allocation formula from 20 of salary and
  benefits to 25 of salary
• Deduct fringe costs from PIP members salary
  augmentations
• Member negotiated contracts
• Increase the allocation of money into the PIP
  members account by 5 across all income
  intervals
• Deduct fringe costs from PIP members salary
  augmentations

6
School negotiated contract example70,000 salary
28 benefits, 25 FTE

• Current
• salary 70,000
• salarybenefits 89,600
• Salary x 1.28
• contract 22,400
• 89,600 x 0.25 FTE
• member funds 4,480
• 22,400 x 0.20
• salary augmentation 4,480 taxes

• Proposed
• salary 70,000
• contracted salary 17,500
• salary x 0.25
• member funds 4,375
• 17,500 x 0.25 FTE
• salary augmentation
• 4,375 fringe taxes
• 4,025 taxes

A difference of 296 annually after taxes
7
Member negotiated contract exampleContract for
services earning 6,000 per year

• Current
• contract amount 6,000
• member funds 5,100
• 6,000 x 0.85
• salary augmentation 5,100 taxes

• Proposed
• Contract amount 6,000
• Member funds 5,400
• 6,000 x 0.90
• Salary augmentation 5,400 fringe taxes
  4,968 taxes

A difference of 86 annually after taxes
8
Elections

• PIP president elect
• Member at large