Research Administration Office
University of California

Memo Operating Requirement
No. 90-6 Supplement No. 3

March 16, 1994

Subject: Continuation of NIH Salary Cap

As indicated in the enclosed NIH Guide notice, the NIH salary cap has been extended for a fifth consecutive year, and the agency expects the cap to be continued in the future.

NIH has made one change in how it will administer the cap, and that is that the recommended levels of support in out-years on a competing grant award will reflect capped salary amounts (if the actual projected salary is above the cap). This change will have little or no practical effect unless the cap is lifted by Congress. Hopefully, in that unlikely event, NIH would institute automatic adjustments based on the new or competing proposal (and not force every institution to submit numerous supplemental requests). This is another reason why it might be prudent to show actual rather than capped salary amounts in new and renewal proposals.

Refer: Meredith O'Connor 510-987-9847

Subject Index: 07
Organization Index: F-375

David F. Mears
Director
Research Administration Office

Enclosure

cc: Nancy Capell