1.  Schools (and units) should establish a policy for awarding cash bonuses to academic appointees for particularly meritorious achievements during the period for which raises are determined.


2.  The cash bonus policy of each school and its departments must be consistent with the salary policy of the School and with the salary policies of IUPUI and IU.


3.  The appropriate governing body of each school shall develop a school policy for the awarding of cash bonuses.  This policy may be written to apply uniformly to all departments, or it may allow each department to develop its own implementation policy.  Both the school policy and the departments’ policies should be approved in the same manner in which other policies are written and approved. 


4.  The school and department bonus policies must be in writing, be approved by the school dean and by the Dean of the Faculties, and be reviewed for possible revision at least once every five years.


5.  Bonuses will be based on excellence as defined by the school and department in their promotion and tenure documents.  Excellence in at least one of the areas of teaching, research/scholarship, service—or as permitted by individual Schools, a balance of excellence in all three—must be achieved by the academic appointee, in order to qualify for a bonus.  In addition, at least satisfactory performance in the other area(s) of responsibility must be achieved.  Bonuses shall not be awarded merely because of the availability of funds.


6.  Funds for bonuses should come primarily from overhead and salary savings, unfilled positions, and development funds.  Bonuses may not be given from funds that are intended for yearly raises.  In extraordinary cases, where funds are not available at the department level, the dean might make funds available. Cash bonuses are not renewable, nor may they be added to the awardee’s salary base, but an individual may be considered for cash bonuses in successive years.  


7.  Bonus awards, like salaries, must be a matter of public record. The fiscal officer initiating the award must keep records of these transactions and make them available upon request. The percentage of each awarding department and/or school’s budget allocated to such bonuses annually must also be a matter of public record, and available upon request.


8.  The determination of recipients in departments should be made at the department level except for department chairs, whose bonuses should be determined at the dean’s level either by the dean or an appropriate committee.  The department’s cash bonus policy should state whether the determination for awardees other than the chair is made by a department committee or by the department chair.  The school’s cash bonus policy should state whether the determination for chairs is made by the dean or by an appropriate committee at the school level, such as its budgetary affairs committee or promotion and tenure committee.


9.  The amount of the bonus may be up to 10% of the base salary for ten-month appointees or one month’s salary for twelve-month appointees and should be given in conjunction with annual raises.


10.  The bonus may be paid in monthly installments or as a single payment.  Cash bonuses cannot replace raises but are awarded in addition to raises, which should be awarded equitably and independent of any cash bonus award.



Passed by Faculty Affairs Committee: 2/03

Approved for First Reading by FC Executive Committee:  3/03

First Reading at Faculty Council: 4/03

Passed by Faculty Council: 5/03