Your Department, CSU, Chico

Project Director Advisories

6/28/2007 Project Benefit Costs

From: Karen Finley, Associate Executive Director/HR Director, CSU Chico Research Foundation

With the start of the new fiscal year we have received some new rates for those benefits mandated by law (such as workers’ compensation and unemployment insurance) and have reviewed the costs associated with the pooled benefits for the fully benefited employees and the required funding. For budgeting purposes, projects were prepared to contribute $615 per fully benefited employee beginning January 1, 2007. At that time when we reviewed the health of the pool, it was determined that we would be able to maintain the contribution at $600 instead of increasing it to $615 for at least the first half of the calendar year. Our most recent review indicates that we will now need to implement the budgeted $615 rate beginning July 1, 2007.

We have had success with our unemployment insurance program and will be able to reduce the actual rate from the current 2.03% calculation down to .05%. Sponsored Programs has indicated that for future budget projections you should use 1.5% to protect against possible future increases. This is down from the previously budgeted 3%

Workers’ compensation rates have also gone down again for the coming year and most projects will see decreases in that area. Percent changes vary from one classification to another, but you should be able to see changes in the amounts charged to your projects for this mandated benefit.

If you have questions about this message, you may contact the Research Foundation Administration at 898-6811.

Thank you!

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