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University of Colorado Boulder
Fringe Benefit Summary FY 2009-10

October 2010

Summary
Total fringe benefit expenses in FY10 increased $13.1m, a 12.4% increase from FY09. In FY08, total fringe benefit expenses were 22.11% of total salary expenses, in FY09 22.39% and in FY10 24.32%. Total salary for FY10 increased $16.4m, a 3.4% increase from the previous fiscal year. 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 FY10.

Chart 1 -- Total fringe benefit expenses ($ in millions)

fringe benefit rates

Total salary expenses
Total salary for FY10 was $488,174,354, a 3.4% or approximately $16.4m increase from the previous fiscal year. Chart 2 - Total salary expenses below compares actual salary expenses from FY04 FY10.
Chart 2 -- Total salary expenses ($ in millions)

salary expense

Fringe benefit expense categories

Below, Table 1 -- Actual $ changes in Fringe Benefit expenses from FY09 to FY10 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 FY09 to FY10
    Totals   Faculty FT  Prof FT    Prof PT   Student Fac Class Perm Class Temp Hourly
Health, Life and Dental Insurance$6.94$1.81 $3.08$0.01$0.0$2.04$0.0$0.0
Retirement (s)$3.44 $0.97$1.84$0.12$0.0$0.68($0.10)($0.07)
Annuitants, Medicare (s), Term Leave $1.37$0.42$0.75($0.34) $0.02$0.46($0.02)$0.08
Disability Insurance$.11$0.05 $0.07($0.01)$0.0$0.0$0.0$0.0
Student Insurance$0.52$0.0 $0.0$0.0$0.52$0.0$0.0$0.0
Unemployment Compensation Claims$0.35$0.02 $0.16$0.03$0.0$0.09$0.05$0.01
Workers' Compensation Insurance$0.34$0.15$0.10 $0.01$0.03$0.04$0.00$0.01
(s)Indicates salary dependant expenses.

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 grew (see table 2 below), as did the overall premium total, which increased between 4.95% and 14.83% (depending on plan and level of coverage). Dental insurance premiums remained the same for Faculty and Professional employees, and increased slightly for Classified employees; overall dental insurance costs increased very slightly. Life insurance premiums remained the same for Faculty and Professional employees and increased slightly for Classified employees, and overall life insurance expenditures decreased slightly.

Retirement (FICA, ORP & PERA) - All retirement categories are salary driven and increased due to higher salary expense. The overall category went up 6.1%, with PERA increasing the greatest amount. FICA costs are salary driven up to a dollar limit of $106,800 per employee for FY10; this amount is the same as it was the previous fiscal year. Costs for Other Retirement Plans (ORP), covering faculty and professional employees, went up 5.3%. PERA expenses increased 8.0% above the FY09 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%. In January 2009, the AED increased 0.4% and the SAED increased 0.5%, making the total employer contribution 12.95%. In January 2010 the AED increased 0.4% and the SAED increased 0.5%, making the total employer contribution 13.85%.

Annuitants, Term Leave, Medicare - This category total had a modest increase, spread among the three components. Annuitants includes health, life, and dental insurance for retired faculty and staff. It is elective driven and saw an increase of 17.0% or $782,842. 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 16.3% from the previous fiscal year by an amount of $300,526. Medicare is salary driven with no limits and was a 5.2% increase or $290,192.

Disability Insurance - Overall disability insurance costs increased 12.4%, representing a cost increase of $110,561.

Unemployment Compensation Claims - This cost is driven by claims and increased $347,564 (14.0%) 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 increased 9.3% 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 FY10, the premium increased by $192.50/semester from $860/semester to $1,052.50/semester. Overall, graduate student faculty insurance increased 24.3%, or $518,868, 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
from previous fiscal year (pfy)
Health Insurance    FY10 employer
contribution
FY09 employer
contribution
Faculty & Prof Exempt  total   % pfytotal% pfy
Employee Only   $382.69    3.97%    $368.08     18.54%  
Employee + Spouse/SGDP    $647.6111.37% $581.50 14.01%
Employee + Child(ren)$647.6111.37% $581.50 14.01%
Family$917.5710.12% $833.2617.17%
Classified staff - CU plans
Employee Only$379.383.07% $368.0818.64%
Employee + Spouse/SGDP$634.405.32% $602.3414.81%
Employee + Child(ren)$670.8224.12% $540.4612.58%
Family$925.8411.11%$833.26 17.22%
Classified Staff - State Plans
Employee Only$376.923.45%$364.36 18.52%
Employee + Spouse/SGDP$631.944.91% $602.3815.43%
Employee + Child(ren)$668.3625.40% $532.9811.67%
Family$923.3811.31%$829.54 17.16%

Last revision 08/16/13


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