Fringe Benefit Rates FY2005

for budgeting purposes
applicable to sponsored agreements for FY2005


For fiscal year 2005, please use the fringe benefit rates listed below when preparing fringe benefits for sponsored agreement budgeting purposes. This will not impact reimbursements from sponsored agreements, as fringe benefits will continue to be reimbursed at the actual dollar amount of expenditure, rather than the budgeted amount.

 Beginning July 2000, the State does not have to pay social security and Medicare for students who meet certain criteria.  Please click HERE  for those criteria.  For the purposes of fringe benefit budgeting, students that meet the criteria will be called FICA Exempt Students.  For students that do not meet the criteria, choose the employee category that applies to them.

FY2004 FRINGE BENEFIT RATES FOR BUDGETING PURPOSES

Employees Eligible for all Fringe Benefits  15.5% of direct salaries & wages
plus
A fixed monthly dollar amount for group insurance
Employees Not Eligible for Group Insurance 
& Retirement
8.25% of direct salaries and wages 
FICA Exempt Students Eligible for Group 
Insurance But Not Eligible for Retirement
.60% of direct salaries and wages 
plus
A fixed monthly dollar amount for group insurance 
FICA Exempt Students Not Eligible for Group
Insurance & Retirement
.60% of direct salaries and wages

FY2004 FIXED MONTHLY DOLLAR AMOUNT FOR GROUP (MEDICAL AND BASIC LIFE) INSURANCE

Classification of Employee Fixed Monthly Insurance Amount
Faculty & Staff - Full Time (100%)  $383
Faculty & Staff - Part Time (50% - 99.99%)
$177
Insurance Eligible Student  $164
Combined (all employees) [a] $329
[a] If you know the classification of the employee who will be working on the sponsored agreement, you may use the above figure that applies to them.  Otherwise, use the combined amount ($329).

Below are two tables, for informational purposes only. The first is a breakdown of the fringe benefit percentages. The second details what the State contributes monthly towards group (medical and basic life) insurance premiums for group insurance eligible employees.

Breakdown of the Fringe Benefit Percentages
Description TRS Eligible
Employees [b]
ORP Eligible
Employees [c]
Employees Not Eligible
for a Retirement Plan 
FICA Exempt
Students
Social Security on first $87,000
(employer portion) [d]
6.20% 6.20% 6.20% NONE
Medicare 1.45% 1.45% 1.45% NONE
Workman's Comp. Ins. [f] .50% .50% .50% .50%
Unemployment Comp. Ins. [g] .10% .10% .10% .10%
Retirement Plan 6.00% 8.50% [e] NONE NONE
Longevity Pay
(based on years of service)




Total 14.25% 16.75% 8.25% .60%
Fringe Benefit Rate for 
Budgeting Purposes
15.5% 15.5% 8.25% .60%

[b] Teacher Retirement System.
[c] Optional Retirement Program.
[d] $87,000 was effective 1/1/2003.  Social Security is subject to change as determined by federal law.
[e] If employee began partication in ORP after 9-1-95, the state contribution is only 6.00%.  Based on SB264, a Member may make a supplemental contribution from any source of funds in an amount not to exceed 2.5% for employees who began participating in the ORP after August 31, 1995.
[f] WCI Member assessments range from .35% to .50% based on previous claim experience.  To see the assessments for each Member, go to /offices/budgets/budget/budget.html.

[g] Members are to determine an appropriate rate depending upon circumstances within the specific institution/agency/health science center (.10% is an estimate only).

TCE exception:

If the employee has a civil service appointment and is in TRS (or ORP after 9-1-95), the rate is 14.95%.
If the employee has a civil service appointment and was enrolled in ORP before 9-1-95, the rate is 17.45%.

MONTHLY STATE CONTRIBUTIONS TO GROUP INSURANCE PREMIUMS


Full Time (100%)
Part Time (50% - 99.99%)
Employee Only $291.20 $145.60
Employee & Child(ren) $373.54 $211.47
Employee & Spouse $422.93 $186.77
Employee & Family $488.80 $244.40



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Last updated 7/14/03