To: Business Managers
From: Dennis Press, University Controller
Date: May 28, 2013
The purpose of this email is to provide the annual, advance notice regarding rate changes effective July 1, 2013. The Composite Benefits and Severance Pay rates are calculated based on salaries paid from Non-State Funds and provide funding to pay expenses for unemployment compensation, workers compensation, short-term disability pay, health insurance premiums while on professional leave, and severance wages.
For fiscal year 2013-14, the Composite Benefits rate will increase to 0.45%, and the Severance Pay rate will increase to 1.00%. The rate changes are effective with the July 2013 payrolls. The Composite Benefits rate is applied to both EPA and SPA salaries, and the Severance Pay rate is applied to SPA salaries. The rates are summarized as follows:
Severance Pay
Expense Object Code: 1251
Salary Base: SPA Salaries paid from Non-State Funds [object codes 121x]
Rate Change: Increase from 0.75% to 1.00%
Effective Date: 07/01/2013
Composite Benefits Fund
Expense Object Code: 1892
Salary Base: EPA and SPA Salaries paid from Non-State Fund [object codes 11xx, 12xx, 13xx, 14xx]
Rate Change: Increase from 0.35% to 0.45%
Effective Date: 07/01/2013