Skip to content

Guidelines for A/B Salary Agreements

Elements to Include in an A/B Salary Agreement

A/B Salary agreement requests require a Retention Salary Adjustment form and an A/B Salary Agreement.

1. Salary Components: A and B

  • Amount of base salary to be covered by state funds (A) and by non-state funds (B), and the expectation that any future increases are applied proportionately to each component

2. Retention-Specific Considerations

  • If this is a retention:
    • Approved new monthly base salary and effective date
    • Expectation that the recipient will remove themselves from current external consideration
    • Ineligibility for another retention increase for 3 years from the effective date
    • Whether the person is eligible for merit/unit adjustment at the next annual consideration
    • If funding for the B-component lapses, the faculty member retains the right to a 100% appointment and may fund the B-component and return to 100% FTE at any time

3. Initial Hire-Specific Considerations

  • If this is an initial hire:
    • Initial time period (if any) over which the B-component will be supplied by the unit
    • For tenure-track faculty, clarification of the tenure percent upon future promotion
    • If funding for the B-component lapses, the faculty member may go on reduced responsibility as described in Office of Research GIM-38

4. Policy and Work Expectation Statements

  • Statements that make explicit the above policy considerations:
    • Work expectations for teaching, scholarship, and service have not changed with the salary increase and will not change if the B-component is unfunded at a future date
    • Should the B component lapse, reducing paid FTE, teaching, service, and student supervision expectations are not changed
    • The tenure fraction is irrevocably reduced to the A value
    • The unit is under no obligation to fund the B-portion should external sources lapse
    • Any course or administrative buyout is as a fraction of the full A+B salary, and the buyout is applied to only the A component
    • Pay during paid medical leave, sabbatical, or approved partial leave without pay (LWOP) is generally in the same A/B proportion
    • Retirement contributions and university matching are based on the total A+B in a given pay period and are thus reduced when the B-component is not funded
    • Vested right to rehire upon retirement is limited to 40% of the A portion for 5 years; the maximum possible rehire amount is limited to 40% of recently funded salary (A+B, if B is funded)
    • Outside professional work limitations are unchanged (52 days/year) and are independent of whether or not the B-component of salary is funded
    • The limits on additional compensation in EO 59 apply to 25% of the full A+B salary