Fringe Benefit Rate | Controller's Office

Fringe Benefit Rate

Fringe Benefit Rate

The fringe benefit rate clusters fringe benefits paid by the university for its employees.  Employee groups are determined based on the fringe benefits offered to the employees within a particular group.  A percentage is determined for each group by taking the fringe benefits costs paid by the university and dividing that amount by the total salaries and wages of that group.  The impact of employee benefits choices is kept within the pool rather than the employing departments.  This will not impact employer contributions or provider premiums.  This rate is charged to all departments on campus regardless of fund type (general fund vs auxiliary fund). However, students and classifieds are not charged for sponsored programs.

What are the advantages of the fringe benefit rate?
  • Consistency and Transparency: Equivalent job codes pay same rates, regardless of the individual election
  • Shift of Risk: Central pool better positioned to manage shortfalls due to size, reducing department risk
  • Easier budgeting: More predictable on what the expense will be when we hire someone.  It will not be based on what the employee elects, the department is charged the same rate no matter what based on the employee classification
  • No Surprise on termination payout
  • Reduces time and effort on PETs
What does the fringe benefit rate cover?
  • Health Insurance
  • Dental Insurance
  • Life Insurance
  • Disability Insurance
  • Medicare
  • Optional Retirement Plan (401a)
  • Vacation and Sick Payout
  • Unemployment Compensation
  • Worker's Compensation
  • OASDI
  • PERA
  • FAMLI (effective FY24)
Rates for FY24 (Effective July 1, 2023)
Employee Group Federal Programs Rate
Regular Faculty >= 50% FTE Used on Federal Awards 36.60%
University Staff >= 50% FTE Used on Federal Awards 42.00%
Regular Faculty/University Staff < 50% FTE Used on Federal Awards 24.00%
Student Faculty/Workers (Hourly) Not used on Federal Awards  00.80%
Classified Staff Permanent Not used on Federal Awards  50.30%
Classified Staff Temporary Not used on Federal Awards  14.70%

 

Rates for FY23
Employee Group Federal Programs Rate
Regular Faculty >= 50% FTE Used on Federal Awards 33.90%
University Staff >= 50% FTE Used on Federal Awards 41.40%
Regular Faculty/University Staff < 50% FTE Used on Federal Awards 22.40%
Student Faculty/Workers (Hourly) Not used on Federal Awards  00.30%
Classified Staff Permanent Not used on Federal Awards  50.90%
Classified Staff Temporary Not used on Federal Awards  21.40%
Rates for FY22
Employee Group Federal Programs Rate
Regular Faculty >= 50% FTE Used on Federal Awards 30.70%
University Staff >= 50% FTE Used on Federal Awards 38.50%
Regular Faculty/University Staff < 50% FTE Used on Federal Awards 20.70%
Student Faculty/Workers (Hourly) Not used on Federal Awards  00.20%
Classified Staff Permanent Not used on Federal Awards  46.10%
Classified Staff Temporary Not used on Federal Awards  21.90%
Each Employee Group's Associated Benefits Eligibility

The following is a summary of each employee group makeup and associated benefits eligibility.

  • >= 50% FTE is 20 or greater standard hours in a work week (40 hours total)
  • < 50% FTE is less than 20 standard hours in a work week (40 hours total)

*Standard hours combine all positions within the university.

Regular Faculty >= 50% FTE
This group includes all full-time instructional and research faculty with the majority having nine-month academic-year appointments, which may include incremental appointments to serve as academic department chairs, summer teaching, and sponsored research appointments. They are not eligible for accrued vacation and sick leave payout (Termination Pay) upon termination/retirement. There are an insignificant amount of faculty that have twelve-month appointments which would be eligible for Termination Pay.

Regular Faculty < 50% FTE
This group includes all part-time instructional and research faculty with the majority having nine-month academic-year appointments, which may include incremental appointments to serve as academic department chairs, summer teaching, and sponsored research appointments. They are not eligible for Health Insurance, Dental Insurance, Life Insurance, Disability Insurance, Retirement Plans (ORP or PERA) or Termination Pay upon termination/retirement. There are an insignificant amount of faculty that have twelve-month appointments which would also not be eligible for Termination Pay.

University Staff >= 50% FTE
This group includes all full-time officer/exempt professional staff and is eligible for all benefits. Current PERA members with no break in CU service must continue PERA in lieu of ORP.

University Staff < 50% FTE
This group includes all officer/exempt professional staff with less than a 50% appointment. This group is not eligible for Health Insurance, Dental Insurance, Life Insurance, Disability Insurance, or Retirement Plans (ORP or PERA). Some members of this group who are not eligible for some benefits, such as group insurance, can be eligible for vacation and sick leave in some cases.

Student Faculty/Workers (Hourly)
This group includes graduate and undergraduate students on a salaried appointment as a Graduate or Undergraduate Assistant, Graduate Part-Time Instructor, Teaching Assistant, Research Assistant, Graduate Reader or Administrative Intern. This group also includes student hourly employees. Students on academic appointment receive tuition remission and these costs are excluded from the composite fringe benefit rate calculation. This group is only eligible for the Medicare benefit when paired with a Student Retirement election.

Classified Staff Permanent
This group includes all permanent classified staff and is eligible for all benefits with the exception of ORP and OASDI.

Classified Staff Temporary
This group includes all temporary classified staff with benefits limited to PERA, Medicare, Unemployment Compensation, and Workers’ Compensation.