blog posts UIC: UIC FY 2021 Revised Employer Fringe Benefit Rates (Provisional) Oct 2, 2020 9:00 amPUBLISH START DATE: October 1, 2020 thru October 31, 2020HEADLINE: UIC FY 2021 Revised Employer Fringe Benefit Rates (Provisional) SUMMARY:This announcement applies only to the Chicago Campus. Revised FY21 Employer Fringe Benefit Rates take effect immediately.MESSAGE CONTENT:This announcement applies to the Chicago campus 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 revised the FY21 employer health insurance premium costs.The revised CMS employer health insurance premiums result in a decrease in the FY21 HLD fringe benefit rate. The prior issued HLD employer fringe rate of 27.83% has been lowered to 23.36%. The revised HLD fringe rate will be applied retroactively for FY21 payroll costs and will replace the initial rates beginning with pay periods 2020 MN8 and 2020 BW16. Journal voucher entries will be performed by University Accounting and Financial Reporting (UAFR) to adjust fringe that was previously assessed at the initial HLD fringe rate. In addition, entries will be performed periodically to adjust any fringe charges related to future labor redistributions. The FY 21 Provisional Facilities/Administrative, Tuition Remission, and Provisional Fringe Benefit Rates document provides detailed rate application guidelines for F&A, tuition, and fringe benefits. The revised FY21 Provisional Fringe Benefit Rates do not impact the F&A or Tuition Remission rates that were previously published. Following negotiation with our Federal cognizant agency, final Fringe Benefit Rates will be published.Current and historical Chicago 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 “Chicago” section, http://www.obfs.uillinois.edu/government-costing/rate-schedules/Chicago/.Academic and Non-Academic Fringe Benefits RatesPlease note that these rates are applicable to academic and non-academic employees eligible for SURS and insurance.Benefit TypesFY21 RatesRetirement/Disability (SURS)12.70%*Health, Life, & Dental (HLD) Insurance23.36%**Termination Vacation/Sick (TVS) Leave0.86%**FICA (Medicare)1.45%*Workers' Compensation0.01%**Total for most academic and non-academic appointments of 50% or more38.38%*** Actual rate for FY21 (FINAL)** Rate is subject to adjustment after federal audit (PROVISIONAL)ContactIf you have any questions about the rate calculations, please contact Maureen Johnson, Associate Director for University Government Costing at firstname.lastname@example.org or 312-996-4045.If you have any questions about re-budgeting, please contact the Office of Sponsored Programs at email@example.com or 312-996-3373.