Summer Pay and Course Buyout Policies

Summer Pay and Course Buyout Policies

It is imperative that faculty applying for research funding and/or reductions in teaching loads communicate in a clear and timely manner with both their chair and the SLA Office of Research in the dean’s office (i.e., Edith Millikan). In particular, it is very important that chairs are involved in making decisions about whether or not requests for reduction in teaching loads can be accommodated within a department or program. While every effort to support faculty research is encouraged, scenarios in which multiple faculty in a department are requesting reduced teaching loads at the same time need to be carefully considered and balanced with a department's teaching mission. Chairs have the authority to make decisions about whether or not - and when - a course buyout or other reductions in teaching loads can be accommodated.

Summer Pay

  • Summer pay per month is calculated as one-tenth of the annual salary for faculty on academic year appointments and as one-twelfth of the annual salary for faculty on 12-month appointments. For faculty with administrative supplements, the annual salary on which the percentage is calculated should include only their base salary and not their administrative supplement.
  • The appropriate percentage of salary should be added to cover fringe benefit costs. Fringe benefit rates are lower in summer months compared to the academic year. Fringe benefits also change from year to year. Current fringe benefit rates are available from the IU Office of Research Administration.
  • If the funder requires a different formula or calculation for summer compensation (salary or benefits), be sure to inform and seek approval from the School of Liberal Arts Office of Research before completing your proposal.
  • It is financially advantageous for both the school and individual researchers to make sure their summers are covered first, and then, if there is additional funding available for course buy-outs, to buy down their teaching for fall or spring semesters. The school prefers that faculty members not buy out of teaching courses during the fall and spring semesters, and then teach one or more courses in the summer for extra pay.

Course Buy-Out

  • Externally-funded research and grants from Indiana University (not campus or school-level grants)
    • Salary portion: salary budgeted for course buyouts during the academic year should be calculated at 12.5% of the researcher's academic year salary per course. Researchers on 12-month appointments can adjust for this by multiplying their 12-month salary by 0.833 to get a 10-month equivalent salary and then applying the 12.5% to that figure.
    • Fringe benefit portion: appropriate fringe benefit costs should also be calculated on the salary (determined in step a. above) and included in the budget.
  • Campus and school-level internal grants
    • Salary portion for the first course buyout: salary budgeted for course buy-outs during the academic year should be calculated at twice the rate that would be paid for a replacement (i.e., part-time) instructor with a PhD.
    • Fringe benefit portion for the first course buyout: only the employer's share of payroll taxes (FICA) needs to be added to the salary portion above.
    • Salary and fringe benefits for additional course buyouts: a researcher who wishes to buy down additional teaching within the same academic year (i.e., more than one course) from internal research funds must use the salary and fringe benefit calculations for externally-funded research for the second, third, etc. courses.
  • Salary savings from course buyouts
    • Salary and benefits paid to an associate faculty member teaching a bought-out course section may be less than the salary budgeted for this purpose in the grant. Any salary savings generated through course buy-outs will be retained by the dean's office. Departments can request recovery of salary savings from the dean's office to support student research assistant funding. The dean's office will match department contributions on a 1:1 basis up to the total dollar amount in salary savings generated by the department.
  • Procedural notes:
  1. Fringe benefit rates change annually. Current rates are available from the IU Office of Research Administration. Check with the School's Office of Research for the correct fringe benefit rates to use in your grant proposal budget.
  2. For faculty with administrative supplements, the annual salary on which the percentage is calculated should include only their base salary and not their administrative supplement.