APL Title: University of Maine System Administrative Practice Letter on System Level Approvals for Stipends, Additional Compensation and Salary Increases
Organizational Area: Human Resources
Proposal Date: 01/17/24
Effective Date: 03/01/24
Review Cycle: 03/01/2027 (Typically 3-year cycle)
Revision and Review History: Implemented 2024

Section 1:  Purpose and Scope

The Administrative Practice Letter on System Level Approvals for Stipends, Additional Compensation and Salary Increases (referred to as the APL on System Level Pay Approvals) addresses the process for System Level Approvals for stipends, additional compensation, and salary increases at the University of Maine System. The APL on System Level Pay Approvals aims to provide the University of Maine System community with a well-developed and understandable framework for determining when it is necessary to obtain System Level Approval for these types of personnel actions. Campus level approvals should be obtained prior to submission for system level approval.

Section 2:  Definitions

Stipends: A stipend is a payment in addition to the base pay for an assignment which is not part of the employee’s ongoing appointment, but which is part of the normal workload, i.e. within the assigned percent of full time. A stipend is used to separate the portion of compensation paid to an employee for the effort and responsibility related to a special assignment. If the special assignment ends, the salary should revert to the salary for the ongoing appointment.

Temporary stipends: are used for an assignment which will last less than one full work year. For an employee with an academic year appointment, this means less than nine months. Temporary stipends are paid over the period of the assignment rather than being spread over twelve monthly installments. Temporary stipends are not included in the ‘SALBASE’, which is used for benefits calculations. Consequently, benefits which are based on salary, such as retirement, life insurance, and long-term disability, are not impacted by the stipend amount.

Regular stipends: are used for an assignment which will last one full work year or longer (for example, if the employee works the academic year, their work year is 9 months). The stipend is included in the calculation of ‘SALBASE’. Benefits based on salary, such as retirement, life insurance, and long-term disability, are based on the salary including the stipend.

Additional Compensation: When compensation is for additional effort, outside the work year or beyond the assigned percent full time, additional compensation (not in the form of a stipend) is appropriate (earnings code 210 for research and other non-teaching assignments or an appropriate earnings code for overload teaching). Additional compensation is not included in the ‘SALBASE’, which is used for benefits calculations. Consequently, benefits which are based on salary, such as retirement, life insurance, and long-term disability, are not impacted by the additional compensation amount.

Salary Increases: Any increase in salary that is a result of a reclassification or similar change to an employee’s duties.

Section 3:  APL Body

Requests for Chancellor approval will be submitted through the HR partners at the respective campus (or university services) and will be forwarded by the HR partner for consideration by the following on behalf of the Chancellor:

  1. Vice Chancellor for Academic and Student Affairs (for full and part-time faculty)
  2. Vice Chancellor for Research and Innovation (for positions conducting research and for those directly related to supporting such research)
  3. Vice Chancellor for Finance and Administration (All actions, including faculty and research)
  4. Vice Chancellor for Strategic Initiatives (All actions, including faculty and research)

This APL applies when:

  1. The salary increases for salaried employees (faculty or staff) are greater than 15% and more than $10,000 and are not negotiated as across-the-board, annual increases, longevity, or other contractually required increases in collective bargaining agreements.
    • The following information is required when submitting a request:
      • Effective date
      • Current salary
      • Salary requested
      • Justification for an increase in current employee salary
      • Funding source
  2. Any stipend or additional compensation is contemplated in excess of $1,100 per month, with the exception of payments to salaried employees who are teaching on a part-time basis or summer salary for faculty
    • The following information is required when submitting a request to the Office of the Chancellor :
      • Effective date
      • Amount requested per month
      • Duration of stipend/add comp
      • Justification
      • Funding source

Section 4:  Revisions and Change Approvals

This APL provides guidelines for System Level Approvals for stipends, additional compensation, and salary increases. Future modifications may be considered based on recommendations from the Office of Human Resources, the Office of the Vice Chancellor for Strategic Initiatives, and the Office of the Vice Chancellor for Finance and Administration. Future modifications will be administered and supported collectively by the Vice Chancellor for Strategic Initiatives (VCSI) and the Vice Chancellor for Finance and Administration (VCFA). The final authority for approving modifications sits with the UMS Vice Chancellors. Any changes to this APL should be distributed widely to the Office of Human Resources, and the Management Group.

The VCSI/VCFA will determine if changes to the APL are substantive or non-substantive. Substantive changes are required to follow the APL creation and revision process. Non-substantive APL changes do not require review beyond the VCSI/VCFA. Non-substantive changes are minor changes that do not affect the overall purpose and instructions outlined by the document. Non-substantive changes may take many forms, including, but not limited to: grammar or spelling corrections, inclusive language, technical revisions, updated names and contacts of pertinent offices or departments, or reorganized APL sections.

Section 5:  Contact Information

For questions regarding the APL on System Level Pay Approvals, please contact the Office of the Vice Chancellor for Strategic Initiatives (VCSI), or the Office of the Vice Chancellor for Finance and Administration (VCFA).