We are writing today with an update to the fringe benefits shared solution work we began with you earlier this fall. Campus constituents came together this past fall and formed small working groups to explore and make recommendations for a shared solution. The small working groups focused on specific benefits groupings based on source of funds and/or unique characteristics of each. Following receipt of those recommendations in November, we engaged in discussions with the lead working group and others to incorporate feedback into a draft proposal. We presented this proposal at a meeting Jan. 23 and received feedback from working group members and the Academic Affairs Budget Advisory Committee (AABAC). We incorporated this feedback into a final shared solution decision.
We committed to provide a final shared solution decision this month and are sharing that decision with you today. The Benefits Shared Solution document summarizes the recommendations that came from the working groups, as well as the responses that will guide our path forward.
We would like to reiterate a few points:
- We have committed to cover any accumulated year-end benefits deficits at the end of this fiscal year.
- Beginning in July 2020, benefits budgets and actual expenses will be localized in fund 10 and 12 speedtypes. These will no longer be held centrally as they were in the past.
- The Office of Faculty Affairs has provided an updated offer letter template, so that effective January 15, 2020, all new offer letters that include start-up and retention packages clearly state that all salary expenses will need to cover corresponding benefits expenses.
This is a change for our campus, and we want to help answer all questions during this transition. The office of Budget and Fiscal Planning (BFP) created an FAQ on the BFP website https://www.colorado.edu/bfp/benefits. We will be conducting outreach to units in the spring, including twice-weekly, full-day office hours in Regent and ARCE, and offering follow-up support throughout the year. Questions or requests can be sent to BFP at bfp@colorado.edu.
Update (May 11, 2020): based on feedback from campus budget officers, the Petition Fund Request Process for FY21 will take place in Sept/Oct 2020 (first round) and spring 2021 (second round). For more information on the Petition Fund, please see the Benefits Shared Solution document (link above).