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To:     University Business Managers

School/Division HR Officers and Secondary Contacts

From: Dennis Press, University Controller

Date: July 18, 2014

The purpose of this memo is to provide the annual notice regarding rate changes for certain benefits. 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 2014-15, the Composite Benefits rate will increase to 0.50%, and the Severance Pay rate will remain unchanged at 1.00%. The rate changes are effective with the September 2014 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:  Remains at 1.00%

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:  Increases from 0.45% to 0.50%

Effective Date:  09/01/2014

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