# Department Chairpersons

##### General Information

__Department Chair Stipend__

__Department Chair Stipend__

- Department chairs receive a stipend that has two components: a flat monthly amount, as described in Article 31.29 of the Collective Bargaining Agreement, and an additional percentage increase based on the department chair administrative fraction.
*Flat monthly amount:*Under the current agreement (May 15, 2007 – June 30, 2010), employees serving as department chair in class codes 2481 and 2482 shall receive a minimum stipend of $80, and for those chairpersons of departments of eighteen (18) or more full-time equivalent faculty, the minimum stipend shall be $120. These amounts are minimums and campuses may provide larger stipends.*Additional percentage increase*based on the department chair administrative fraction:- Pursuant to a Settlement Agreement effective March 2006, 12-month department chairs (2481) will receive an additional 4.5% of the salary attributed to department chair administrative duties;
- Effective July 1, 2002, Academic Year Department Chairs (2482) will receive an additional 7% of the salary attributed to department chair administrative duties.

- The stipend amount shall be deducted from the employee’s salary effective on the date that the chairperson’s assignment ends.

__Administrative Timebase Fraction__

- For employees in department chair classifications, the administrative timebase fraction associated with the chair assignment must be maintained in PIMS Item 718. For faculty in split positions (i.e., concurrent assignment in both instructional faculty and department chair classifications), PIMS Item 718 should match the timebase for the department chair position. PIMS Item 718 is entered as a fraction for individuals whose department chair administrative assignment is less than full time. PIMS Item 718 is entered as “FT” for those individuals whose department chair administrative assignment is full time.

__Calculating Stipend Amounts__

*12-Month Department Chairs*

To establish the initial pay for a 12 month chair with an administrative timebase fraction of 1.0, apply the following steps:

- Assuming the faculty member was originally in an academic year instructional faculty position, convert the AY salary to 12 month by adding 15%.
- Apply an additional 4.5% to the monthly salary.
- Add the flat monthly stipend.

* Example 1:* Instructional faculty AY salary (class code 2360) is $6000 per month. Administrative fraction is 1.0. Article 31.29 stipend is $120

12-month salary = $6000 x 1.15 = $6900

Stipend = ($6900 x 0.045) + $120 = $311 + $120 =$431

New salary = $6900 + 431 = $7331

For 12-month chairs with an administrative timebase of less than 1.0, to establish the initial salary, apply the following steps:

- Assuming the faculty member was originally in an academic year instructional faculty position, convert the AY salary to 12 month by adding 15%.
- Apply an additional 4.5% to the administrative time base fraction only.
- Add the flat monthly stipend.

* Example 2:* Instructional faculty AY salary (class code 2360) is $6000 per month. Article 31.29 stipend is $80. Administrative fraction (PIMS item 718) is 0.6.

12-month salary = $6000 x 1.15 = $6900

Stipend = ($6900 x 0.045 x 0.6) + $120 = $186 plus $80 =$266

New salary = $6900 + $266 = $7166

For 12-month chairs (less than 1.0 timebase) with a concurrent AY instructional faculty appointment, it is necessary to determine a base salary for the chair appointment that provides for the appropriate dollar amount of the Article 31.29 stipend after the time base is adjusted to less than full time. This means that the base salary for the chair appointment must include the 15% increment for conversion to 12 months, the 4.5% additional increment, and the flat stipend divided by the timebase of the chair appointment.

** Example 3**: Instructional faculty AY salary (class code 2360) is $6000 per month. Article 31.29 stipend is $80. Administrative fraction (PIMS item 718) is 0.6.

- New concurrent appointments will be in classes 2481 (at 0.6 timebase) and 2360 (at 0.4 timebase). New
**base**salary for the 12-month chair appointment will be: - $6900 (12-month equivalent) x 1.045 + ($80/0.6) = $7211 + $133 = $7344
*Actual*12-month chair salary will be:- $7344 x 0.6 = $4406
- This amount breaks down into 12-month salary of $4140 ($6900 x 0.6) with a total stipend of $266
- The new instructional faculty (class 2360)
*actual*salary will be ($6000 x 0.4) = $2400.

*AY Department Chairs:*

To establish the initial pay for an academic year chair (class code 2482) with an administrative timebase fraction of 1.0, apply the following steps:

- Add a 7% increment above the AY instructional faculty rate
- Add the flat monthly stipend.

* Example 4:* Instructional faculty AY salary (class code 2360) is $6000 per month. Chair administrative fraction is 1.0; Article 31.29 stipend is $120

- Stipend = $6000 x 0.07 + $120 = $420 + $120 = $540
- New monthly salary = $6000 + $540 = $6540

To establish the initial pay for an AY chair (class code 2482) with a timebase less than 1.0, apply the following steps:

- Apply a 7% increase to the chair administrative fraction
- Add the flat monthly stipend

* Example 5:* Instructional faculty AY salary (class code 2360) is $6000 per month. Article 31.29 stipend is $80. Administrative fraction (PIMS item 718) is 0.6.

- Stipend = ($6000 x 0.07 x 0.6) + $80 = $252 + 80 = $332
- New monthly salary = $6332

For AY chairs (less than 1.0 timebase) with a concurrent instructional faculty appointment, it is necessary to determine a base salary for the chair appointment that provides for the appropriate dollar amount of the Article 31.29 stipend *after *the time base is adjusted to less than full time. This means that the **base** salary for the chair appointment must include the 7% additional increment, and the flat stipend divided by the timebase of the chair appointment.

** Example 6**: Instructional faculty AY salary (class code 2360) is $6000 per month. Article 31.29 stipend is $80. Administrative fraction (PIMS item 718) is 0.6. Concurrent appointments of 0.6 in class 2482 and 0.4 in class 2360.

- New
**base**salary for the chair appointment in class 2482 will be ($6000 x 1.07) + $80/0.6 = $6420 + $133 = $6553 **Actual**AY- Actual salary for concurrent 0.4 appointment in class 2360 will be $6000 x 0.4 = $2400.
- Note that in this case the sum of the actual salaries for the two concurrent appointments is $3932 + $2400 = $6332, the same as the final salary in example 5.

__Paying Over the Salary Range Maximum__

Unless the department chairperson occupies the “Full Professor” rank, an employee’s salary (including stipend) cannot exceed the performance salary range maximum under normal circumstances. (Specific classification codes that can be paid over the salary range maximum are provided in Attachment B of technical letter HR/Salary 2007-25.) (add hyperlink here)

__Service Salary Increase (SSIs)__

It is not the intent of the contract to prevent an otherwise SSI eligible department chair from receiving an SSI.

- For individuals in full time department chair assignments (e.g., 1.0 timebase), FMI and stipend amounts should be subtracted from the total salary to determine the maximum SSI percentage available. After the SSI percentage is based on the “true” base salary, that percentage is applied to the original department chair salary to determine the new chair salary, regardless of the SSI maximum for the department chair class.
- For individuals appointed in a department chair position with a less than full time department chair timebase fraction, or if appointed in a separate concurrent department chair position that is less than full time, the percentage of SSI received in the instructional faculty assignment will be applied to the entire salary of the department chair assignment, inclusive of stipend, regardless of the SSI maximum for the department chair class.

- Rules for subtracting FMI awards from the instructional faculty salary in order to determine SSI eligibility still apply.
- If the department chair subsequently returns to a full time (e.g., 1.0 timebase) instructional faculty position, for any individual with an SSI counter greater than zero, the campus shall re-evaluate the resulting salary after the chair stipend has been removed to determine further SSI eligibility.
- For detailed information on SSI processing for department chairs, refer to: http://www.calstate.edu/HRAdm/pdf2007/TL-SA2007-25.pdf

__Department chair Salary “Windfall”__

Department chair stipends are included when calculating GSIs, SSIs or other salary related transactions during the period the employee serves as the chairperson. When this happens, a salary “windfall” is retained with the employee’s base salary. For example, if the employee is receiving $150 per month as a stipend, and a GSI of 2% is awarded, the incremental increase associated with the stipend ($3 per month) would be retained in the employee’s base salary when the employee transitions from the department chair position back to the instructional faculty position. This windfall can be fairly substantial if the individual has served as a department chair for a long period of time; see Example 7 below. Note that if the employee holds concurrent appointments as department chair and instructional faculty, no windfall will be attached to the instructional faculty position when the department chair appointment ends.

* Example 7:* A faculty member is appointed to an academic year chair position in August of 2004. Her faculty salary at the time is $6600 per month (full professor). The chair fraction is 0.6. The department determines her stipend to be $120 per month plus 7% of the $6600 per month base salary times 0.6, or $277, for a total chair stipend of $397. That brings her new monthly salary to $6997. The following GSIs occur:

- A GSI of 3.5%, effective 7/1/05.
- A GSI of 3.0%, effective 7/1/06
- A GSI of 1% effective close of business 6/30/07
- A GSI of 3.7%, effective 7/1/07
- A GSI of 2%, effective close of business 6/30/08
- A PPI of 3.25%, effective 7/1/09
- A GSI of 0.045%, effective September 2010

- These GSIs bring her salary to $8232 per month.
- In August 2011 she steps down from the chair position and returns to her instructional faculty position. To calculate her new salary, Payroll subtracts the $120 and then divides the remainder ($8112) by 1.042 (see the next section and
*Example 8*below for how this is derived.) - $8112/1.042 = $7785. This is the instructional faculty salary going forward.
- If all of the above salary increases were applied to the instructional faculty salary from 2004, that salary would have become $7760 by August of 2011. In other words, the faculty member has retained a “windfall” of $25 to her base monthly salary.

__Restoring a Department Chair to an Instructional Faculty Classification__

When a department chair appointment ends, the individual must normally be returned to his or her original instructional faculty classification.

- In the case of an employee who holds concurrent appointments in the department chair and instructional faculty classifications, no special calculations are necessary; the instructional faculty appointment is simply adjusted back to full time and the chair appointment is ended.
- If the employee has been appointed to a full-time department chair position, the following steps must be taken:
- Subtract the flat monthly stipend (e.g., $80, $120.)
- Divide the remainder by the percentage increment that was added. This yields the instructional faculty salary.
- For a chair appointed in classification 2482 (department chair, academic year), divide the remainder by 1.07.
- For a chair appointed in classification 2481 (department chair, 12 month), divide the remainder by 1.045 (to yield the 12 month salary without the chair increment), then by 1.15 (to return to the AY salary.)

- If the employee is appointed full time in the department chair position, but the department chair administrative fraction is less than full-time, the following steps must be taken:
- Subtract the flat monthly stipend.
- Determine the
*corrected*stipend percentage by multiplying the chair administrative fraction by the percentage increment applied to the chair fraction. - Divide the remainder after subtracting the flat monthly stipend by the corrected percentage.

** Example 8**: AY chair (classification 2482) with a chair fraction of 0.6. The increment applied to the chair fraction was 7%. Including the flat monthly stipend of $120, the total salary as chair was $6372.

After subtracting the $120 flat stipend, the remainder is $6252.

Corrected percentage factor is 0.6 times 0.07, or 0.042.

The instructional faculty salary is obtained by dividing the remainder by 1.042.

$6252/1.042 = $6000

** Example 9**: 12 month chair (classification 2481) with a chair fraction of 0.4. Flat monthly stipend is $80. Total monthly chair salary is $8509.

After subtracting the $80 flat stipend, the remainder is $8429.

Corrected percentage factor is 0.4 times 0.045, or 0.018.

The academic year instructional faculty salary is obtained by first dividing the remainder by 1.018 to produce the 12-month salary, then dividing by 1.15 to convert back to AY.

$8429/1.018 = $8280 (12 month salary without chair stipend)

$8280/1.15 = $7200 (AY salary)