Many thanks to all of you who replied to my question on salary savings policy, especially to Michael Ludwick for reposting the discussion on the NCURA list.

Perhaps the most clearly worded statement I received (off list) was from the University of Washington guidelines.  I have reproduced it below.

*It should be noted that when a faculty FTE, or portion thereof, is vacant due to appointment to a grant budget, the FTE is not lost to the department as a permanently budgeted position. The salary equivalent goes to the accruals account each month that the position is vacant. The department has these funds at its disposal for equivalent part-time faculty appointments or conversion to temporary assistantships, to time-slip funds, or other budget categories. This benefit is provided to departments to encourage extramural funding.*  (University of Washington guidelines)

It seems to embody the concepts that most schools seem to follow and spells them out clearly so that there is no confusion about who benefits.
Again, thanks fir your responses.

Jim Matta
Office of Research and Sponsored Programs
Bloomsburg University