Benefit Pool Funding Participation

UCSC manages a program through which benefit costs for permanently budgeted staff (a.k.a. sub 1) may be covered from a central benefits pool.  The benefits pool operates for qualifying positions paid on specific core funds, those backed by sufficient permanent revenue sources.

At this time, the specific core funds in the benefits pool include:
19900  General state fund
19917  Information technology (ITTP assessment)
19924  SAPEP
19942  Non-resident tuition
20000  Student services fee
20095  Tuition
20360  Measure 7
66043  Information user (IU assessment)
66051  Business transformation (BTP assessment)
69750  Indirect cost recovery from federal contracts and grants
69900  Interest income

In order to establish a new qualifying permanent position or increase an existing permanent FTE, permanent budget must be contributed ("buy-in") by the unit to the benefit pool.   After buy-in any future benefit cost increases for that FTE are covered by the benefits pool.

The buy-in rate is calculated based on the relevant benefits assessments rates (CBR, RPNI, GAEL -- not VLA).  Although the VLA/vacation leave accrual benefits assessment rate is not included in the buy-in calculation, both the VLA expense and credit when used are covered by the benefits pool.  Beginning April 1st of each fiscal year, the next-year's benefits assessment rates will be used in the calculation.  Both a permanent buy-in is required, as well as a prorata current operating year buy-in if the FTE will be effective mid fiscal year.

From time to time it may be necessary for a unit to completely eliminate a permanent position.  In such cases the unit may be eligible for a permanent benefits rebate.  Upon the deletion of a permanently budgeted staff FTE position, the benefit contribution rebate will be the greater of 1) one-half of the sum of the currently applicable CBR, GAEL and RPNI rates or 2) the original benefit contribution provided by the unit.  In the latter situation, the burden of documenting/proving the original contribution lies with the unit.

EXAMPLE OF REBATE USING CURRENT RATES:  A unit wishes to eliminate a permenantly budgeted 1.00 FTE last filled at the salary of $75,000 effective 7/1/2020.  The benefits rebate would be calculated as follows using 2020-21 rates for CBR, GAEL and RPNI:

(51.5%+1.5%+0.77%)/2 = 26.885%

$75,000 x 26.885% = $20,164 benefits rebate

Rebates are only provided for the elimination of staff (sub 1) FTE.  Rebates are not provided for an FTE that is simply reduced and not eliminated.  Current fiscal year rebates will not be provided. 

In the case of significant unit(s) reorganization, resulting in multiple FTE changes, rebates will be evaluated on a case by case basis when evidence of FTE buy-in history is provided.  The Dean or Principal Officer, or their senior staff, should consult with the Budget Office in advance of such broad changes.

Questions regarding benefits pool participation and requests for rebate should be addressed to the campus Budget Office.


Historical Information:

Changes to Benefit Pool Participation Letter - Effective November 15, 2019

Formula for Employee Benefit Funding - Effective March 31, 2015 - November 14, 2019