This announcement applies to the University of Illinois at Springfield only. Please distribute this information to those in your unit who work with fringe benefit rates.
Revised FY21 Employer Health, Life, and Dental (HLD) Fringe Benefit Rate takes effect immediately.
The calculation of the University of Illinois employer HLD fringe benefit rate is dependent on the employer share of health insurance premiums calculated by the State of Illinois Central Management Services (CMS). CMS has recently reviewed the original assumptions used for the employer health insurance premiums and has made certain revisions based on more current trends of medical claims and health plan enrollment information. Based on this review, CMS has recently revised the FY21 employer health insurance premiums.
The revised CMS employer health insurance premiums results in a decrease in the FY21 HLD fringe benefit rate; the original HLD employer fringe rate of 44.61% is now revised to 37.46%. The revised HLD fringe rate will be applied retroactively for FY21 pay events and will replace the original rates beginning with pay periods 2020 MN8 and 2020 BW16. Journal vouchers entries will be performed by University Accounting and Financial Reporting (UAFR) to adjust fringe previously assessed the original HLD fringe rate. In addition, entries will be performed periodically to adjust any fringe charges related to future labor redistributions.
The FY 21 Final Facilities & Administrative (F&A) Rates and Fringe Benefit Rates document provides detailed rate application guidelines for F&A and fringe benefits. The updated FY21 Fringe Benefit Rates do not impact the F&A rates that were previously published.
Current and historical Springfield rates documents are available from the “Rate Schedules (F&A, Fringe Benefits, Tuition)” page of the OBFS Government Costing Web site. The rate posting related to this specific communication is named under the “Springfield” section, http://www.obfs.uillinois.edu/government-costing/rate-schedules/springfield/.
