Salary Savings Award

Salary Savings Award

The Salary Savings Award program recognizes individual faculty members who contribute to the University’s research initiatives by securing extramural funding and applying unsponsored research effort to sponsored projects. The IUB salary savings award process is managed and funded by the units responsible for disbursing faculty salaries (i.e., the unit providing the faculty member’s base salary). The program aims to incentivize the development of new grant support and assist in recruiting and retaining grant-active faculty.

This program returns to principal investigators (PIs) and qualifying senior personnel a portion of their academic year (AY) salary and benefits placed on external grants. While some federal agencies generally do not fund AY salary, others (such as NIH) impose no such limitations. The incentive is intended to encourage faculty to seek extramural funding to cover their AY research time.

Find the Salary Savings Award Form Here

A. Eligibility for Award

All full-time faculty on regular or special title series(e.g., tenure-track, non-tenure-track clinical, lecturer/teaching, or professor of practice) are eligible for the award, excluding visiting, acting, adjunct, and research appointments (e.g., research professor or research scientist). Faculty with research appointments are ineligible, as salary coverage using grants and contracts is typically an explicit expectation of employment focused solely on research.

This incentive applies exclusively to AY salary buy-out of research time covered by external funding. It therefore excludes any external funds the PI has directed toward summer salary or AY teaching time (i.e. course buyouts) covered by grant support. Additionally, the incentive excludes funding toward faculty salaries paid from non-general fund sources, such as endowments.

B. Determination of Award Amount

PIs may allocate between 5% and the full allocation of their research time to external funding. The percentage of allowable effort used in the equation will be determined by the Research/Teaching/Service workload allocation framework.  

Fifty percent of this amount will be returned to the PI as the incentive. Benefits are approximately 35%, so the calculation uses 1.35 to represent benefit coverage.

Award Amount Calculation:

(1.35 × Percent of AY salary covered by external funding × AY salary) × 0.5 = Incentive Amount

The maximum incentive amount is capped at $35,000.

C. Award Allocation

Salary savings will be used to pay an award as research discretionary funds to eligible researchers. Research discretionary funds earned through the Salary Savings Award are subject to the same conditions and restrictions as the Indirect Cost Recovery Sharing program.

If a faculty member has at least $10,000 in research discretionary funds in their account, they may request to take part or all of the Salary Savings Award as supplemental salary. The faculty member must submit a formal request with a narrative justification indicating why they do not need research discretionary funds and prefer to take the award as supplemental salary. These requests must be approved by the faculty member’s department chair and dean. The Award, if approved to be taken as a salary supplement, will be subject to standard state and federal tax withholding.

To be eligible for award payout, the calculated award must be at least $1,000 for the individual faculty member. In addition, the faculty member must still be employed at the University on the date of the distribution. The awards will be paid out in August after the end of the fiscal year as a payroll payment to the faculty member.

Awards may be adjusted or withheld on the basis of the following conditions:

  • An annual performance evaluation with poor performance concerns
  • Over expenditure of grants
  • Sabbatical
  • Determination of research or other misconduct
  • Determination of non-compliance or inappropriate use of funds