How to Fund Employee Benefits
Step 1:
Determine if employee benefits need to be transferred to the Central Benefits Pool according to campus policy (PPM 380-6).
Employee benefits must be calculated and budgeted in BOTH the Current Year AND Permanent budgets when:
- A new FTE is created; or
- An FTE is increased; or
- An incremental salary increase has been awarded in 19900A, 19900Z, 19906A, or 19924A funds.
By campus agreement, funding of employee benefits is NOT required for transfers of funds between like salary accounts (e.g. from 610000 to 610000).
Step 2:
Determine the departmental index number that will be debited and the appropriate Central Benefits Pool index number that will be credited.
The sub-campus, fund, and program number where the salary action is budgeted must be consistent with the sub-campus, fund, and program number within the Central Benefits Pool.
Example: If you fund a new FTE in Health Sciences - General Fund - Research (sub-campus 2 – fund 19900A - program 440000), then you must fund benefits in the Central Benefits Pool index number with the corresponding sub-campus, fund, and program number. In this case, it would be RMGBD14 (sub-campus 2 – fund 19900A - program number 440001).
>> Go to List of Central Benefits Pool Indexes
Step 3:
Calculate the benefit assessment using the rate chart below or use the Online Employee Benefits Calculator.
>> Go to the Online Employee Benefits Calculator
UCSD Employee Benefit Rate as of January 1, 2002
Rate |
Faculty | Staff |
|---|---|---|
| Fixed | 6% | 10% |
| Variable - Percentage used for incremental salary increases | 11% | 12% |
| Total - Percentage used for new or increased FTE | 17% | 22% |
How to Calculate Benefit Assessments
Current Year Calculation | FTE x Full Monthly Rate* x Appropriate Benefit Rate (Total or Variable) x Number of Months the FTE will be active during the current fiscal year |
Permanent Calculation | FTE x Full Monthly Rate* x Appropriate Benefit Rate (Total or Variable) x 12 (months in one year) |
*Full Monthly Rate = Annual Salary/12
A new staff member hired full time at $36,000 annually with a starting date of February 1st (5 months of service left in the current fiscal year).
| Budget Adjustment Type | FTE | Full Monthly Rate* | Rate | Months | Benefits Due |
|---|---|---|---|---|---|
Current Year |
1.00 x | $3,000.00 x | .22 x | 5 = | $3,300.00 |
Permanent |
1.00 x | $3,000.00 x | .22 x | 12 = | $7,920.00 |
*Full Monthly Rate: $36,000.00/12 = $3,000.00
An incremental salary increase (e.g. reclassification) for an existing half-time staff member beginning October 1st (9 months of service left in the current fiscal year).
| Budget Adjustment Type | FTE | Full Monthly Rate Change* | Rate | Months | Benefits Due |
|---|---|---|---|---|---|
| Current Year | 0.50 x | $500.00 x | .12 x | 9 = | $270.00 |
| Permanent | 0.50 x | $500.00 x | .12 x | 12 = | $360.00 |
*Full Monthly Rate Change = New Salary less Old Salary
Step 4:
Prepare an Online Transfer of Funds (OLTF) reflecting the new FTE, FTE increase, or incremental salary increase and associated funding for the appropriate Central Employee Benefits Pool.
>> Go to PPM 380-6: Administration of Employee Benefits
