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• Comprehensive benefits are offered to faculty, university staff (professional exempt), and state classified staff employees with 50% or greater appointments in eligible positions.
• Graduate student faculty, student employees, and retirees receive limited benefits.
• The overall benefit program is managed at the CU system level by Employee Services.
• Each campus decides how to pay for benefit costs.
• Employees may select or change benefits after hire, following "life events", or during annual open enrollment.
• The benefit plan year is July 1Ìýthrough June 30.

• The Â鶹ӰԺ campus has used a pooled benefit rate, charged on salary, since 2004. Prior to that, actual benefit expenses were charged directly to departments. Pooled rates spread risk, ensure coverage to all eligible employees who enroll, and minimize incentives to hire based on an employee's potential benefit needs.
• Rates are developed annually by a group from Budget & Fiscal PlanningÌýand the Campus Controller's Office. They are submitted for approval to the federal Department of Health and Human Services (DHHS) by the end of December. CU Â鶹ӰԺ only uses DHHS-approved fringe rates.
• Rates are a cost recovery mechanism:
  • Benefits expenses/salary expenses = fringe benefit rate
  • Each employee group has a different rate because different benefits are offered
• Benefits are a closed financial system (i.e. not aÌýrevenue source for the University). Prior year over- or under-recoveries must be built into next year's rate.

• Medical coverage
  • Health insurance - employer contribution is the same regardless of the provider/plan selected
  • Dental insurance - employer contribution is flat regardless of level of coverage
  • Vision coverage - employees pay the full amount
• Retirement benefits
  • Employer contributions to PERA
  • Other retirement plans (TIAA,ÌýVanguard, etc.)
  • FICA - Social security
• Annuitants insurance - HLD (Health, Life, Dental) for retirees
• Termination pay - separation payouts for accrued sick and vacation leave
• Life insurance - flat contribution for all eligible employees
• Disability insurance - short-term and long-term
• Unemployment compensation - based on actual claims
• Worker's compensation - based on actual claims, managed by University Risk Management
• Parental leave
• ECOPASS

For more detailed information on benefit coverage, visit the webpage.

For a financial summary of fringe rate components, visit the Campus Controller's Office webpage (scroll to the bottom of the page and click "FY22 Fringe Components").

Employees elect benefit plans and are then charged for the employee-paidÌýportion of benefits on their monthly pay advice. The employee-paid portion then goes to the Office of Employee Services (CU System).

Employer-paid benefits are recovered through the automatic charging of fringe benefits rates to campus departments. RatesÌýareÌýapplied automatically to salary expenses as part of the month-end close process. MoniesÌýflow through the all-campus benefit pools in fund 28 to the Office of Employee Services. Employee Services pays insurance providers with these contributions.

For a better understanding, view our visual representation of how fringe benefits flow in the CU system. (PDF)

The fringe benefit rate calculation uses the most recent fiscal year actual amounts to calculate future fiscal year benefit rates. These figures form the basis for projecting current year salary and benefits activity, which are used in turn to project the fringe benefit and salary expenses for the following year. Calculations of the estimated fringe benefit expenses determine the rate necessary to adequately fund projected fringe benefits expenses based on estimated changes to employer contributions.

For your convenience, we've created a chartÌýthat graphically displays the two year lag in actual expenses and the inclusion of calculated carryforwardsÌý(±Ê¶Ù¹ó). The campus is required by federal rules to include the prior year’s surplus or deficit (carry forward) in the following year’s rates.

Fringe benefit rates are submitted to the U.S. Department of Health and Human Services, Division of Cost Allocation, by the end of December annually.Ìý

In FY21, General Fund benefits budgets and expenses were localized. Prior to FY21, General Fund benefits budgets and expenses were held centrally in the General Fund benefits pool. On July 1, 2020, General Fund benefits budget was localized (moved out from the General Fund benefits pool and returned to local General Fund departments). The General Fund benefits pool has since been deactivated. Benefits expenses on the General Fund now charge locally to the same departmental speedtypes where salary expenses are incurred, as part of the month-end close process.

General Fund benefits localization was part of the Benefits Initiative, also known as the Benefits Shared Solution. For more information and resources, please visit BFP's Benefits Initiative webpage.

Salary and benefits budget amounts on General Fund speedtypes should align with current year fringe benefits rates. When transferringÌýGeneral Fund salary and benefits budget, salary and benefits budget must be transferred together in the same journal entry according to current year fringe benefits rates, so that salary and benefits budget amounts remain in alignment at the speedtype and account code levels.

When convertingÌýnon-salary budget to salary budget, the corresponding benefits budget must be convertedÌýas well.

Increases and decreases to General Fund continuing benefits budget amounts due to year-on-year changes in benefits fringe rates are executed by the Office of Budget & Fiscal Planning in July of each year. General Fund salary and benefits budgets should be reviewed and adjusted as needed prior to the FYE General Fund continuing BJE cutoff in mid-April, so that the necessary increases and decreases can be allocated.