The UCPath (UC Payroll, Academic Personnel, Timekeeping & Human Resources) system requires all campuses to distribute employer-paid benefits and other employment-related assessments using a benefits assessment method know as the composite rate method. UCSC implemented composite rates beginning in January, 2020 during UCPath adoption.

In UCPath there are four benefits assessments, each with it's own composite rate. A composite rate is an average of the projected costs across the projected gross earning of the relevant employee group for the relevant year.  Employee groups are defined by attributes such as benefit eligibility, Employee Class, exempt and non-exempt status, job code, etc. Campus units are charged these assessments as a percent (rate) of the gross earnings of each employee, not the actual benefit costs for each employee. 

Each of the four benefits assessments is described in detail below. It is imporant to note, that only two of the assessments may be charged to federal or federal flow through funds 2, 3, 6 and 7 or Fund Type 25, per the approval of the US Department of Health and Human Services (approval is currently pending).

 Federal /Non-Federal Allowable Rates at a Glance

	CBR	VLA	GAEL	RPNI
Federal Funds	X	X
Non-Federal Funds	X	X	X	X

 

Composite Benefit Rates (CBR)

Composite Benefit Rates (CBR) are fringe benefit rates that are based on a percentage of an employee's salary according to Employee Groups. The CBR rates do not vary by individual employee benefit selections. UCSC currently has six Employee Groups. 

The following paid benefits are combined and charged at a single rate rather than the multiple charges currently assessed: Benefits Administration, Dental, Disability, Employee Support Programs, FICA Tax, Life Insurance, Medical, Retiree Health Benefits, Matching Retirement Contribution, Senior Management Supplement, Unemployment Insurance, Vision, Workers' Compensation.

Frequently Asked Questions

Will the composite rates affect an employee's cost of/eligibility for benefits?

No. The employee's cost and eligibility for benefits will not be affected when UCSC transitions to the new CBR structure. This new structure only changes how fringe benefits are charged within the University.

What if a person is eligible for full benefits, but not appointed at 100% time?

The benefit cost for an employee is the applicable rate multiplied by gross salary. If the appointment percentage is lower, the salary is lower and, thus, the benefit cost will be lower, even if the employee receives full benefits. This is a considerably simpler calculation and also reduces benefit expenses for part-time employees as compared to the old method of calculating benefit costs.

What fringe benefit components are included in the composite rates?

Benefits Administration, Dental, Disability, Employee Support Programs, FICA Tax, Life Insurance, Medical, Retiree Health Benefits, Matching Retirement Contribution, Senior Management Supplement, Unemployment Insurance, Vision, and Workers' Compensation.

What salaries are included in the base that will be subject to CBR?

CBRs are applied to all components of pay except perquisites, allowances, incentive payments, and vacation leaves.

Does the "Students" CBR apply to both undergraduate and graduate students?

Yes, the "Students" CBR applies to both undergraduate and graduate students. Note that this applies to fringe benefits, not fee remission of GSHIP, which is charged separately.

Are graduate student tuition remission, GAEL, and paid leave included in CBR?

The process to charge graduate student tuition remission is unchanged, and will be the actual costs for each student employee. Likewise, the processes for GAEL, vacation leave assessment (VLA), and sabbaticals are unchanged. There will be separate GAEL and vacation leave assessment rates as well as a UCRP supplemental interest assessment (RPNI).

What factors determine which CBR group an employee falls under?

An employee will fall into a CBR group based on 1) Employee Class, 2) Eligibility Configuration (BELI equivalent), 3) Fair Labor Standards Act (FLSA), and 4) Job Code

Are these benefit rates based on appointment percentage as well as the employment/title category or will the rates hold steady at the given CBR percentages regardless of the appointment? For example, would an employee with a 50% appointment have the same benefit rate as a 100% appointment?

The rate is based on job code and benefit eligibility and is assessed against the gross salary. While the rate would not change for a 50% or a 100% appointment, the actual charge would be half for the 50% appointment.

If I hire a prospective Assistant Researcher who currently has his own medical insurance, will the composite rate be reduced based on this or will it remain the same?

CBR groups are assigned using Employee Class, Eligibility Configuration (BELI equivalent), FLSA status and Job Code. If someone waives their UCSC medical insurance, it will not affect the CBR group or rate that they are assigned.

If two employees are married, which CBR category would determine the benefit rates? Are they both calculated/charged according to the respective FAU as individual employees or would one be in the "Non-Full Benefits" rate?

The employees would each be assigned to the employee class that is appropriate for the terms of their employment. The marriage would have no impact on the CBR rate.

I have a PI that would like to hire a Professional Researcher (non-senate academic) at 60% time. He resides in, and will collaborate from, Canada and will opt out of health insurance. Should the PI be considered "Faculty and Other Academic" or "Non-Full Benefits"?

Opting out of health insurance would have no impact on the CBR rate. The rate will depend on the terms of employment.

In the example above, what will impact the "Non-Full Benefits"? Percentage of appointment? Title Codes? Please provide direction as to what defines the CBR group?

In UCPath, CBR groups are assigned using Employee Class, Eligibility Configuration (BELI equivalent), and Job Code. As positions are assigned an Employee Class, they are also assigned the appropriate CBR for that class. It is possible for the Eligibility Configuration to override this initial mapping and assign an individual into the "Non-Full Benefits" rate group if the Eligibility Configuration is set to do that. Ultimately, it would not depend on the Title Code of the position, but rather the terms of employment.

How will the new rate affect existing contracts and grants?

We understand that many researchers have multi-year awards and proposals which were approved with different fringe benefit rates than the CBRs. The campus developed a short-term mitigation plan to assist existing multi-year research contract & grants experiencing significant financial hardship created by the transition to CBRs. 

Who do I contact if I have additional questions about the CBR?

Can't find what you are looking for on the CBR website? Please email: ask-cbr-group@ucsc.edu

 

Vacation Leave Accrual (VLA)

Vacation accrual is a method by which units or grants are charged for vacation hours as they are earned.  This method often results in savings to the unit or grant because often employees use their vacation time later, likely at a higher salary rate.  With the adoption of UC Path, the methodology for charging units and grants changes.  There are three rates that apply based employee classification.  With each pay period the relevant rate (%) will be calculated on gross salary and charged to the unit or grant as a benefit expense, even after the employee is at their vacation maximum. 

VLA is a federally compliant assessment.

Another change with UC Path adoption is that terminal vacation will no longer be charged to units based on separated employees with permanent FTE on Core Funds.  Only VLA will be charged to units.

Frequently Asked Questions

If an employee  in our department reaches their maximum vacation accrual. Will we still be charged VLA?

Yes, VLA will continue even if an employee reaches the maximum accrued hours.

My department is paying VLA each month. If an employee chooses to take their vacation after they receive a salary increase will I be charged for the difference when they take their vaction?

No, VLA is the only financial obligation to the unit.   However, when the employees salary increase becomes effective the amount paid for VLA will increase, because it is charged to a unit based on % of gross salary.

 

General Automobile and Employee Liability (GAEL)

GAEL is a University of California assessment to cover various liability and related loss prevention programs that cover all employees. The rates are assessed on the salaries of all university employees based upon funding source. GAEL rates are reviewed and adjusted annually.

Federal funds and federal flow thru funds cannot be charged the GAEL assessment.

GAEL includes: General Liability, Employee Liability, Auto Liability, Property Liability, Cyber Liability, and Professional Medical Liability.

GAEL rates are reviewed and adjusted annually. A UCOP Premium letter funding letter, informing the rate calculation, is usuallyreceived in early May.

UCRP Supplemental Assessment Interest also known as RPNI

The UC Retirement Plan (UCRP) Supplemental Assessments cover debt service on advances made to UCRP from the UC short term investment pool and external financing in order to help pay down unfunded UCRP liability. The principal portion is embedded in the CBR rate. However, the interest portion (RPNI) cannot be charged to federal funds or federal flow thru funds, resulting in a separate RPNI rate.

RPNI rates are reviewed and adjusted annually. Rates are communicated to our campus in early June.

 

 

 

Can't find what you are looking for on the CBR website? Please email: ask-cbr-group@ucsc.edu