Course Buyout Policies

EBERLY COLLEGE OF ARTS AND SCIENCES
COURSE BUYOUT POLICY

Approved by the Office of the Dean: September 2019

Last modification: August, 2020

I. INTRODUCTION
In the Eberly College, external funding is routinely secured to perform research activities.
Externally funded projects can require faculty to expend effort above and beyond their
research assignment. Under this scenario, faculty may seek to modify their workload by
requesting a course release (and a corresponding adjustment in their teaching and research
workload percentages). In all cases, such arrangements are subject to approval
by the department chair or program director and the Office of the Dean at the time a
grant or fellowship proposal is submitted, and well in advance of the semester in which
the buyout is to occur. Documentation supporting the approval should be uploaded into
the KC system for external funding, or the ECAS proposal and award notification form
for internal grants or fellowships. An alternative to a course buyout is the opportunity to
maintain a full teaching load and participate in the Academic Activity Incentive Program.

II. REQUESTING A COURSE BUYOUT
In order to request either an internally or externally sponsored course buyout, the faculty
member must communicate with the department chair or program director regarding
how such a workload modification will impact the faculty’s assignment and that of the
other members of the department. Once a faculty member has received a course release
approval from the department chair or program director, the chair or director must communicate
the course buyout proposal to the associate dean for academic affairs for final
review and approval. Written approval should then be forwarded to the ECAS Research
Office. The faculty member should request funding from the external sponsor to support
the percentage of their released salary including fringe benefits, and indirect costs. The
rate for each external course buyout is 12.5% of the base salary, plus fringe, and any
indirect costs that apply to the source of funding, per course buyout. Information about
internally sponsored buyouts can be found in Section IV.

III. EXTERNALLY SPONSORED COURSE BUYOUT CALCULATION
Multiply the faculty member’s base salary by 12.5%. The product is then multiplied by
the current fringe benefit rate to arrive at the fringe benefit cost. The product of this
calculation is then multiplied by the indirect cost rate that was applied at the time of the
award to arrive at the indirect cost. As an example, consider a base salary of $75,000
with fringe benefit and overhead rates (correct as of July 2020) of 24% and 52% respectively.
The buyout amount would be $17,670, as shown below:
$75,000 x 0.125 x 1.24 x 1.52 = $17,670.2

IV. INTERNALLY SPONSORED COURSE BUYOUT CALCULATION
In cases where an internal award is made (e.g., the Humanities Center Fellowships), it is
possible to use those funds to buy out teaching. Multiply the faculty member’s base
salary by 12.5%. Fringe benefits or overhead rates are not required. For example, consider
a base salary of $75,000. The buyout amount would be $9,375, as shown below:
$75,000 x 0.125 = $9,375.

V. COURSE COVERAGE DURING FELLOWSHIPS
In the event a faculty member has been awarded an external fellowship, and it is determined
by the department chair or program director and the Office of the Dean that
the faculty member’s current course(s) must be offered while they are on fellowship, the
rate of the course buyout will be determined based on whether the sponsor guidelines
allow for a charge of the externally sponsored course buyout, as described above. If the
sponsor does not allow for this expense, the rate will follow the same guidelines that are
applied during sabbatical. During a half-year fellowship, the course replacement cost(s)
will become a department or program expense. During a full-year fellowship, the course
replacement cost(s) will be shared between the department or program and the Office
of the Dean.
In the event a faculty member has been awarded an internal fellowship, and it is determined
by the department chair or program director and the Office of the Dean that the
faculty member’s current course(s) must be offered while they are on fellowship, the rate
of the course buyout will be determined based on the terms of the internal fellowship
and in negotiation with the Office of the Dean.

VI. COMMUNICATION
Following communication by the faculty member to the department chair or program
director, the chair or director must send an email communication to the associate dean
for academic affairs describing the terms of the course buyout proposal. The terms must
include the number of course buyouts proposed, an explanation regarding whether the
course(s) will need to be offered in the faculty member’s absence, and whether the
course(s) will receive full, partial, or no external or internal support.