University of Colorado Boulder
Total fringe benefit expenses in FY07 increased $12.4m, a 16.37% increase from FY06. In FY05, total fringe benefit expenses were 18.89% of total salary expenses, in FY06 19.99% and in FY07 21.67%. Total salary for FY07 increased almost $18.0m, a 4.63% increase from the previous fiscal year increase. An increase in employer contributions is the primary reason fringe benefit rates increased at a greater rate than salaries.
|Total fringe benefit expenses|
The amount of total costs provided by the employer contribution has been greater in the past fiscal years causing benefit expenses to grow at a higher rate than salaries. Chart 1 - Total fringe benefit expenses, shows total actual fringe benefit expenses from FY04 - FY07.
Chart 1 -- Total fringe benefit expenses ($ in millions)
Total salary expenses
Chart 2 -- Total salary expenses ($ in millions)
Fringe benefit expense categories
Below, Table 1 -- Actual $ changes in Fringe Benefit expenses from FY06 to FY07 identifies significant dollar changes for benefit categories by employment class. Many of the benefit categories are tied directly to salary and result in commensurate increases when salary increases.
Table 1 -- Actual $ changes (in millions) from FY06 to FY07
Health, Dental, and Life Insurance (HLD) - The overall HLD category increased from the previous fiscal year. Health and Dental Insurance are both elective driven; Life Insurance is automatic. For health insurance, the employer contribution amount and the overall premium total increased. Dental insurance premiums for Faculty and Professional employees remained the same while the premiums for Classified employees increased. Life insurance premiums went down for Faculty, Professional and Classified reducing the Life portion of HLD.
The Department of Personnel and Administration changed its "plan year" for group insurance from calendar year to coincide with fiscal year effective July 1, 2005.
Retirement (FICA, ORP & PERA) - The overall category increased moderately, with PERA increasing the greatest amount. FICA costs are salary driven up to a dollar limit of $97,500 per employee; this amount is an increase from the previous fiscal year. Other Retirement Plans (ORP) costs are salary driven with the total cost increasing 6.12%. This amount reflects increases in salary for Faculty and Professional employees and an increase in eligibility for Professional PT. PERA is salary driven, with the total PERA dollar increase of 8.61% above the FY06 amount. All of the Retirement categories increased because of additional contributions for temporary retiree employees and salary increases.
Starting in January 2006, SB04-257 required an increase in the employer contribution for PERA for Classified employees. The Amortization Equalization Disbursement (AED) was put in place to reduce PERA's unfunded liability, caused by previous State decisions to reduce the employer contribution, as well as the down turn in the economy. In FY06, the 10.15% statutory employer contribution, plus the AED of 0.5%, made the total PERA employer-paid contribution 10.65% of salary. In January 2007, the total employer contribution increased to 11.15%.
Annuitants, Term Leave, Medicare - This category total had modest increases with Annuitants showing the greatest increases. Annuitants includes health, life, and dental insurance for retired faculty and staff. It is elective driven and premium increases coupled with an increase in the number of retirees caused a significant increase of 23.89% or $877,929. Term Leave includes expenses associated with leave pay-outs for employees who separate from the University. The amounts can vary from year to year based on retirements and other separations. Term Leave increased 12% above the previous fiscal year by an amount of $242,745. Medicare is salary driven with no limits and was a 6.21% increase or $274,566.
Disability Insurance - Overall disability insurance costs decreased because of a significant decrease in the Classified employee expenses.
Unemployment Compensation Claims - This cost is driven by claims and decreased slightly from the previous fiscal year. There was increased eligibility and employee group recoding of Professional PT and Classified Temporary staff causing fluctuations between employment categories for this line item. This is a relatively small line item within the Fringe Benefit pool so any changes will cause a large change in percentage.
Workers' Compensation Insurance - This cost is the annual total for the premium paid by Risk Management for all Boulder campus employees. The total increase in the premium from the previous fiscal year was approximately $800,000.
Graduate Student Health Insurance - This is health insurance for graduate students on academic appointment and the cost is elective driven; 70% of the premium cost is covered by the campus. This expense item accounts for nearly all of the Student Faculty fringe benefit costs. In FY07, the premium increased by $125/semester from $750/semester to $875/semester. Overall, graduate student faculty insurance increased 21.44%, a total of $333,860.
Employer contribution comparison for health insurance
Table 2 - % Increase from previous fiscal years for health insurance and specifically identifies fiscal year comparison amounts by employee category and elective coverage.
Table 2 -- % Increase in employer contribution for health insurance
|Health Insurance||FY07 employer |
|Faculty & Prof Exempt||total||% pfy||total||% pfy|
|Employee + Spouse/SGDP||$468.56||24.00%||$377.87||12.46%|
|Employee + Child(ren)||$468.56||24.00%||$377.87||12.46%|
|Classified staff - CU plans|
|Employee + Spouse/SGDP||$447.25||25.27%||$357.02||10.04%|
|Employee + Child(ren)||$419.91||21.09%||$346.78||6.89%|
|Classified Staff - State Plans|
|Employee + Spouse/SGDP||$445.50||23.80%||$359.85||10.91%|
|Employee + Child(ren)||$418.16||20.57%||$346.81||6.89%|
Last revision 03/10/11
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