University of Colorado Boulder
Total fringe benefit expenses
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 FY07 to FY08 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 FY07 to FY08
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 decreased slightly for Faculty and Professional employees and remained the same for Classified employees; overall dental insurance costs decreased slightly. Life insurance premiums remained the same for Faculty and Professional employees and increased slightly for Classified employees, and overall life insurance expenditures increased slightly.
Retirement (FICA, ORP & PERA) -All retirement categories are salary driven and increased due to higher salary expense. The overall category went up 4.6%, with PERA increasing the greatest amount. FICA costs are salary driven up to a dollar limit of $102,000 per employee for FY08; this amount is an increase from the previous fiscal year. Costs for Other Retirement Plans (ORP), covering faculty and professional employees, went up 7.46%. PERA expenses increased 15.35% above the FY07 amount.
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 downturn 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%. In January 2008, the total employer contribution increased to 12.05% due to a 0.4% increase in AED and a new Supplemental AED (SAED) component increase of 0.5%.
Annuitants, Term Leave, Medicare - This category total had modest increase, mainly driven by higher Medicare expenses. Annuitants includes health, life, and dental insurance for retired faculty and staff. It is elective driven and saw a decrease of .1% or $42,068. Term Leave includes expenses associated with leave payouts for employees who separate from the University. The amounts can vary from year to year based on retirements and other separations. Term Leave increased 2.1% above the previous fiscal year by an amount of $46,005. Medicare is salary driven with no limits and was a 10.1% increase or $471,805.
Disability Insurance - Overall disability insurance costs stayed virtually the same.
Unemployment Compensation Claims - This cost is driven by claims and increased $70,182 from the previous fiscal year.
Workers' Compensation Insurance - This cost is the annual total for the premium paid by Risk Management for all Boulder campus employees. This premium decreased slightly from the previous fiscal year.
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 FY08, the premium decreased by $85/semester from $875/semester to $790/semester. Overall, graduate student faculty insurance decreased 9.6%, or $70,233, from the previous year.
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||FY08 employer |
|Faculty & Prof Exempt||total||% pfy||total||% pfy|
|Employee + Spouse/SGDP||$510.05||8.85%||$468.56||24.00%|
|Employee + Child(ren)||$510.05||8.85%||$468.56||24.00%|
|Classified staff - CU plans|
|Employee + Spouse/SGDP||$524.92||17.37%||$447.25||25.27%|
|Employee + Child(ren)||$480.34||14.39%||$419.91||21.09%|
|Classified Staff - State Plans|
|Employee + Spouse/SGDP||$522.10||17.19%||$445.50||23.80%|
|Employee + Child(ren)||$477.52||14.19%||$418.16||20.57%|
Last revision 03/10/11