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Chapter 460: UMKC Dental Faculty Practice Plan

460.070 Allocation of Net Plan Income and Incentive Income Definitions

Bd. Min. 2-11-83.

  1. For purposes of this section, the following definitions apply:
    1. Net plan income attributable to a participant shall be the difference between the plan income (Section 460.040) assigned to the University by the participant and the costs of operation of the plan (Section 460.050).
    2. Incentive income attributable to a participant shall be the net plan income attributable to a participant reduced by the portion of the participant's DFPP base salary measured by plan income (Section 460.060).
    3. Net plan income attributable to a practice group shall be the aggregate of the net plan income attributable to participants in that practice group.
    4. Incentive income attributable to a practice group shall be the net plan income of the practice group reduced by the portion of the base salary measured by plan income for the participants in that practice group.

  2. Individual Participant -- In addition to base salary (Section 480.060) a participant may receive incentive salary in an amount not to exceed seventy-five (75) percent of incentive income (45% of gross income) attributable to a participant. The percentage rate for incentive salary shall be determined prior to the commencement of the salary contract year by the Dean. The balance of incentive income shall be allocated in the following manner: sixty (60) percent thereof to the practice group account (9 percent of gross income) Section 460.070 D.2) and forty (40) percent thereof to the Dean's Office Accounts (6 percent of gross income) (Section 460.070 D.3).

  3. Group Participants
    1. All participants within a practice group may wish to practice as a group and pool their income for the purpose of generating the portion of their base salary contract measured by plan income or for allocating incentive income attributable to the participants or both. The percentage rate shall be determined in the same manner as specified in Section 460.040 A.1 above, and the balance of incentive income attributable to the practice group or section shall be allocated in the manner specified in Section 460.070 B above. Such arrangements and the allocation of such incentive salary among the participants in the practice group shall be determined prior to the commencement of the salary contract year and agreed to in writing by each participant and approved by the practice group administrator and the Dean.
    2. Annually on the date established by the Dean, the practice groups will submit proposals to practice as practice groups to pool their plan income under Section 460.040 C.1.

  4. Dental Faculty Practice Plan Account -- An account shall be established in which plan income shall be deposited and from which plan expenses shall be paid. Within this account the following subaccounts shall be established:
    1. Participant's Account -- An account shall be established for each participant which shall be credited with the participant's portion of the plan income as determined by the DFPP base salary contract and the incentive income distribution schedule. All expenditures or transfers from this account will conform with the participant's plan contract provisions relating to the participant's share of any incentive income.
    2. Practice Group Accounts -- A practice group account shall be maintained for each practice group. These accounts shall be credited with the appropriate portion of the plan income as determined by the plan.
      1. Expenditures from these accounts shall be in accordance with standard University policy.
      2. Voluntary contributions to the Dean's Office Account may be made annually from each practice group account. The Business Office shall supply the Dean and the DFPP Committee with a periodic statement of account for each practice group account. A periodic statement of account shall be furnished to each practice group head for his own practice group account.
    3. Dean's Office Account -- A Dean's Office Account shall be maintained. The account shall be credited with its percentage portion of the plan income as determined by the plan. Any expenditures or transfers from this account must conform to standard University budgeting policy.
      1. The Dean's Office Account is established to support research and development costs, capital improvements, new members of the faculty, renovation, programs in the basic sciences, School of Dentistry library and for such other purposes that are of general benefit to the School of Dentistry.
    4. Practice Group Faculty Salary Accounts -- There shall be a practice group faculty account for each practice group. The purpose of these accounts is to provide budgeted funds to attempt to guarantee in full the portion of the participant's base salary contract measured by plan income. Any participant in the plan who shall temporarily cease to have in his participant's account income adequate to support the portion of his base salary contract measured by plan income, unless otherwise provided for in the plan, shall be entitled to receive from the practice group account the deficient portion of the base salary contract measured by plan income for the remainder of his contract year. The administrator of the practice group administers the account but may expend the funds only as outlined above to assist in meeting a participant's base salary.

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