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To: Deans, Directors, and Department Chairs
From: Brian Bertlshofer, Director, Cost Analysis and Compliance, Office of Sponsored Research

Effective January 1, 2017, the Fiscal Year 2017 fringe benefits budgeting guidelines for sponsored agreements will be updated to reflect the calendar year changes to the following categories:

  • Social Security (OASDI) Calendar Year 2017 maximum taxable salary base
  • Compensation limits (maximum) subject to retirement (TSERS & ORP)
  • State Retirement contribution rate
  • Optional Retirement Program contribution rate
  • P & A Supplemental Medical Insurance

See Schedules I & II for details regarding the above mentioned updates.  The highlighted items in orange below have changed from the (08/01/2016) memorandum.

To calculate the specific benefits budget for each employee included in a proposal, refer to the attached schedules and apply the appropriate variable rates to the employee’s budgeted salary, and combine that amount with the employee’s fixed health insurance amount.

To use average rates to budget benefits across several employees included in a proposal, apply the average rate for each schedule category below to the applicable budgeted salaries and add fixed health insurance for each employee.

Schedule I lists basic fixed health insurance and fringe benefits rates applicable to permanent employees, post doctoral appointees and graduate students.  To budget basic fringe benefits for permanent employees, apply the NEW AVERAGE RATE of 23.093% plus the fixed health insurance component ($5,659.00).

To budget basic fringe benefits for post doctoral appointees and graduate students, apply an average rate of 8.990%   (includes Communications Technology fee to be paid from Sponsored Agreement payroll sources effective 01/01/2013) plus the related fixed health insurance component ($4,310.16 Post Doctoral appointee; $3,399.24 Graduate student).

Schedule II lists supplemental fixed health insurance and fringe benefits rates applicable to Physicians & Associates (P & A) Practice Plan members only.  To budget for supplemental benefits, apply the average rate of 5.079% plus the fixed supplemental health insurance component ($2,093.04).

Note that proposal budgets for P & A Practice Plan members should include the sum of the average rates and fixed health insurance amounts from Schedule I & Schedule II (28.172% [23.093% + 5.079%]) plus $7,752.04 ($5,659.00 + $2,093.04) for basic and supplemental health insurance. 

Schedules I and II are available on the web.

Rates are available on the OSR website

Please direct specific questions to your department’s designated sponsored projects specialist or to

Please contact Trent Riley ( at 919-843-4825 or Brian Bertlshofer ( at 919-843-4891  for general questions about these rates.

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