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Employee Benefits

Updated: July 31, 2007, for 2007/2008 changes When preparing a sponsored project proposal budget, calculations for the sponsor's contribution to employee fringe benefits should be computed using the following information. UMCP does not have a "fringe benefit rate" and Grant/Contract accounts will be charged actual amounts. Any deficit occurring as a result of underestimating these benefits must be covered by transfers from other budget categories in the Grant/Contract. Retirement: (Rates effective FY08)   Employee's Retirement or Pension System 8.86% x annual base salary Teacher's Retirement or Pension System 11.60% x annual base salary TIAA-CREF 7.25% x annual base salary Social Security and Medicare Tax: Contributions are based on the calendar year salary. 7.65% of the first $97,500 (2007) including Medicare portion of tax, 1.45%. (Maximum contribution on first $97,500 is $7,459.00. Over $97,500 will contribute $,7459.00 plus 1.45% for the Medicare tax on every FICA taxable dollar over $97,500.)   Medicare Tax: 1.45% of base salary.   Unemployment Compensation: 0.2% of salary.   Health Benefits Estimates: There are currently many options available for health insurance benefits. Where possible, actual UMCP costs should be computed for each employee enrolled. The plan selected by each employee can be determined from the health insurance card issued to the employee or by contacting the Personnel Benefits Office (x55654). Where it is not possible to determine the actual costs, one should budget for the highest option.   Health Benefit Costs as of July 1, 20071     Monthly Annually3 Employee only $424 - $506 $5090 - $6071 Employee and one family member $745 - $893 $8942 - $10,716 Employee and two or more family members $1001 - $1205 $12,013 - $14,464 1Costs include health, dental and prescription plans (rounded to nearest whole dollar). 2These totals are also applicable to 9- or 9.5-month appointments. 3No Surcharge subsidy for FY'08.   Tuition Remission and Fees: Full-time Permanent Employees Undergraduate September 2007-May 2008: No more than 2 courses, not to exceed 8 credits per semester @ $273 per credit hour. Summer 2007: No more than 1 course per summer session, not to exceed 6 credits for all summer sessions @ $273 per credit hour. Graduate September 2007-May 2008: No more than 2 courses, not to exceed 8 credits per semester @ $427 per credit hour. Summer 2007: No more than 1 course per summer session, not to exceed 6 credits for all summer sessions @ $427 per credit hour. Part-time Permanent Employees - proportional to percentage of service (must be at least 50%) Research Graduate Assistants - up to 10 credits per semester, four (4) summer @ $427 per credit hour (max of 24 - $10,248) See Board of Regents Policy VII-4.10(A). As not every fringe benefit is available to every employee classification, reference the chart below to determine applicability for the different groups. The last column contains a formula for projecting a reasonable estimate. Type of Employee State Retirement/ PENSION TIAA Health Insurance Social Security Unemployment Estimate may be computed by using... Faculty 9, 9.5, or 12 mos. X - X X X 19% x (Salary) + Health Ins. + Tuition Faculty 9, 9.5, or 12 mos. - X X X X 15% x (Salary) + Health Ins. + Tuition Summer Salary 9, 9.5, or 12 mos. Faculty - - - X X 8% x Salary Permanent Non-Exempt > 50% X - X X X 17% x (Salary) + Health Ins. + Tuition Exempt > 50% (Option a) X - X X X 17% x (Salary) + Health Ins. + Tuition Exempt > 50% (Option b) - X X X X 15% x (Salary) + Health Ins. and Tuition Permanent Part-Time > 50% X - X X X 17% x (Salary) + Health Ins. + Tuition Permanent Part-Time < 50% - - - X X 8% x Salary Research Grad Assistants 9.5 or 12 mos. - - X - - 100%(Health Ins. + Tuition) Research Grad Assistants Summer Only - - - - - None Undergraduate including Summer if attending classes - - - - - None Undergraduate (Not attending summer classes) - - - X X 8% x Salary