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University of Colorado Boulder
Fringe Benefit Summary FY 2012-13
November 2013

Summary
Total fringe benefit expenses in FY13 increased $16.2m, a 12.5% increase from FY12. In FY11, total fringe benefit expenses were 24.6% of total salary expenses, in FY12 24.9% and in FY13 26.9%. Total salary for FY13 increased $21.1m, a 4.0% increase from the previous fiscal year. The overall fringe benefit increase can be attributed to multiple factors including the shift of 2.5% contribution for PERA from the employee back to the employer in July 2012, an increase in employer contributions for health, life, and dental (HLD),and a shift in coverage tier (from Employee only to Family coverage) all contribute to the fringe benefit rates increasing at a greater rate than salaries.

Total fringe benefit expenses
TFringe benefit expenses are driven by several factors including salary, level of employee coverage, and premium costs. Chart 1 - Total fringe benefit expenses, shows total actual fringe benefit expenses from FY04 FY13.

 

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

Total salary expenses
Total salary for FY13 was $542.8M a 4.03% or approximately $21m increase from the previous fiscal year. Chart 2 - Total salary expenses below compares actual salary expenses from FY04 FY13.



Chart 2 -- Total salary expenses ($ in millions)

Fringe benefit expense categories

Below, Table 1 -- Actual changes in Fringe Benefit expenses from FY12 to FY13 identifies significant dollar changes for benefit categories by employment class. Some benefit categories are tied directly to salary, which results in commensurate increases when salary increases.

 

Table 1 -- Actual $ changes (in millions) from FY12 to FY13
    Totals   Faculty FT  Prof FT/Class Perm    Prof PT/Class Temp  Student Fac Hourly
Health, Life and Dental Insurance $7.70$1.85 $5.01($0.01) $0.85$0.00
Retirement (s) $7.56 $1.11$6.10$0.35 $0.00$0.00
Annuitants, Medicare (s), Term Leave $1.06$0.18$0.86 $0.01 $0.00$0.01
Disability Insurance$0.04 $0.01 $0.03$0.00 $0.00$0.00
Student Insurance$0.85 $0.00 $0.00$0.00 $0.85$0.00
Unemployment Compensation Claims ($0.04)($0.02) $0.01($0.02) $0.00($0.01)
Workers' Compensation Insurance ($0.08) ($0.03)($0.07) $0.02 $0.00$0.00
(s)Indicates salary dependant expenses.

Health, Dental, and Life Insurance (HLD) - The overall HLD category increased from FY12 (see HLD Charts at http://www.colorado.edu/pba/budget/misctopics/HLD.html). Health and Dental Insurance are both elective driven; basic Life Insurance is automatic. ForHealth Insurance, the employer contribution amount grew (see table 3 below), as did the health premium total, which increased between .21% and 10.85% (depending on plan and level of coverage). Dental Insurance premiums remained the same for Faculty and Professional employees and Classified Staff 50% or greater and increased slightly for Classified employees less than 50% appointment in the State Dental Plan; overall dental insurance costs increased 1.2%. Life Insurance premiums increased only for the Faculty/OEP category and overall life insurance expenditures increased 12.7%.

Retirement (FICA, ORP & PERA) All retirement categories are salary driven, and FICA, ORP and PERA increased due to higher salary expense. The 2.5% shift in contribution from employer to employee in effect since July 2010 reverted back to the employer in Jan 2013, contributing to the 27% increase in PERA costs. FICAcosts are salary driven up to a dollar limit of $113,700 per employee for CY13; this amount increased from $110,100 the previous calendar year. Costs for Other Retirement Plans (ORP), covering faculty and professional employees, went up 5.0%. PERA expenses increased 27% from the FY12 amount.

Below, Table 2 --PERA Contributions 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 January 2008, a new Supplemental AED (SAED) component increase was added.

Table 2 -- PERA Contributions From CY2006 to CY2013

Annuitants, Term Leave, Medicare - This category increased 6.9%, 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 7.3% or $468,169. 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 10.1% from the previous fiscal year by an amount of $275,941. Medicare is salary driven with no limits and was a 5.0% increase or $315,013.

Disability Insurance - Overall disability insurance costs increased 3.7%, representing a cost increase of $41,356.

Unemployment Compensation Claims - This cost is driven by claims and decreased $33,150 (5.6%) from the previous fiscal year.

Workers' Compensation Insurance - This cost is the annual total for the premium paid by University Risk Management for all Boulder campus employees. This premium decreased $91,898 (2.5%) 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; the campus covers a fixed portion of the premium amount. This expense item accounts for nearly all of the Student Faculty fringe benefit costs. In FY13, the premium increased by $258/semester from $1,105/semester to $1,363/semester, and the campus covered $1,100/semester. Overall, graduate student faculty insurance increased 27.5%, or $848,689, from the previous year.

Employer contribution comparison for health insurance

Table 3 - % Increase from previous fiscal years for health insurance and specifically identifies fiscal year comparison amounts by employee category and elective coverage.

Table 3 -- % Increase in employer contribution for health insurance
from previous fiscal year (pfy)
Health Insurance
(Medical, Dental, Life)
FY13 employer
contribution
FY12 employer
contribution
Faculty & Prof Exempt  total   % pfy  total   % pfy
Employee Only $437.65 7.84%  $405.85   .85%  
Employee + Spouse/SGDP     $770.74 12.51% $685.07 0.96%
Employee + Child(ren) $770.74 12.51% $685.07 0.96%
Family$1,086.09 11.53%$973.79 0.98%
Classified staff - CU plans
Employee Only$437.65 8.97%$401.62 0.27%
Employee + Spouse/SGDP$780.73 16.21%$671.82 0.60%
Employee + Child(ren)$753.73 6.12%$710.24 0.60%
Family$1,086.09 10.79%$980.280.72%
Classified Staff - State Plans
Employee Only$435.39 9.08%$399.15 0.62%
Employee + Spouse/SGDP$778.47 16.30%$669.35 0.81%
Employee + Child(ren)$751.47 6.17%$707.77 0.80%
Family$1,083.83 10.84%$977.81 0.87%

Last revision 03/18/14


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