FY2019-20 Composite Benefit Rates Overview

FY2019-20 Composite Benefit Rates approved rates review December 10th2019

A. NEW NEWUCOP agreement with the Federal Government 1. The agreement made between UCOP and the Federal Government drives a new standard CBR structure in UCPath across all Campuses. 2. Under the new CBR agreement, fringe benefits from one subgroup can no longer be allocated to another subgroup. 3. UCOP works with each campus to create yearly CBR proposals and submit the proposal to the Federal Government for approval. 2

B. Key changes under the new FY2019-20 CBR structure 1. Five CBR rate groups instead of three to account for fringe benefits expenses related to the Students and No benefit eligibility CBR groups. 2. DOS / Earn codes (included / excluded) have changed. 3. Stipends are assessed CBR. 4. Vacation leave taken (earn code VAC) and vacation leave accrued (earn code VLA) are not assessed CBR. 5. Post Doc Fellow (job code 3253) is assessed the Limited CBR rate. 3

C. Key drivers for calculating CBR rates for budgeting or new hires Pre UCPath Title codes groups BELI codes (2,3,4,5) Z comp DOS codes Post UCPath Employee Classes Eligibility codes (F- Full, M-Mid level, C-Core,N-None,P- Post Doc) Earn code excluded from CBR FLSA status (Do not influence CBR rates in the FY20 CBR structure) Job Codes (Do not influence CBR rates in the FY20 CBR structure) 4

D. Changes in the CBR logic tree Pre UCPath and in UCPath Pre UCPath and in UCPath Pre UCPath Post UCPath Available on the CBR website! 5

E. CBR rates for FY20 For FY2019-20, CBR rates were developed based on forecasted salaries and associated fringe benefits in each CBR groups. CBR Group 01 02 03 04 05 06 07 08 09 10 14 Description CBR Rate Group Academic Academic Academic Staff Staff Students Limited Benefit Limited Benefit No Benefit Eligibility Post Doc Fellow Limited Benefit Assessment Rate FY19 Assessment Rate FY20 38% 38% 38% 46% 46% 0% 17% 17% 0% 0% 17% Fclty Nt HSCP-Full Ben Acad Yr Faculty HSCP - Full Benefits Other Academics-Full Benefits Staff Exempt - Full Benefits Staff Non-Exempt-Full Benefits Students - Graduate/Undergrad Post Docs Faculty/Staff-Partial BenElig Faculty/Staff - No Ben Elig Campus Rate #1 Fclt Nt HSCP-Full Ben Sumr Sal 36.5% 36.5% 36.5% 45.5% 45.5% 2.4% 17.4% 17.4% 5.6% 17.4% 17.4% 6

F. Conclusion 1. The UCOP CBR agreement with the Federal Government under UCPath drives a standardized CBR structure across all UC campuses. 2. The new FY2019-20 CBR agreement has five different CBR rates: Academic, Staff, Limited, No Benefits Eligibility and Students. 3. The base for the CBR calculation has also changed: Salary (exclusions/inclusions) have changed, a particular one being Vacation leave taken now excluded (VAC earn code). Benefits (exclusions/inclusions) have changed as well with UCRP supplemental assessment interest no longer captured under CBR and assessed separately as an example. 8

APPENDIX APPENDIX 10

Appendix Historical rates CBR Groups FY13 24.4% 38.0% 15.9% 19.7% 1.8% 0.0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 Faculty Staff Other Academic Post Docs Graduate Students Undergraduate & Work Study Students Academic Staff Limited Students (Grad & Undergrad) No Benefit Eligibility 33.9% 34.0% 41.5% 42.1% 17.3% 17.5% 0.0% 36% 44% 20% 0% 39% 46% 17% 0% 40% 48% 16% 0% 38% 36.5% 46% 45.5% 17% 17.4% 0% 0.0% 2.4% 5.6% Note: CBR rates were rounded to zero decimal starting in FY16 which created additional swings in the CBR pool. The proposal for FY20 is to round to one decimal only. 11

Appendix - FY2019-20 Fringe Benefit Rate Projection 12

Appendix - Earning Codes Excluded from Salary and Wage Cost Base 13

Appendix Employee Class Empl Class Description Staff: Contract Staff: Career Academic: Recall Staff: Limited Student: Casual/Restricted Staff: Per Diem Staff: Partial Year Career Staff: Floater Academic: Faculty Academic: Non-Faculty Academic: Academic Student Staff: Contingent Workers Academic: Contingent Workers Staff: Rehired Retiree Academic: Conversion Academic: Emeriti Academic: Deans/Faculty Admin Academic: Post Docs Benefits Eligible Full, Mid, Core Full, Mid, Core Core Mid, Core None None Full, Mid, Core Full, Mid, Core Full, Mid, Core Full, Mid, Core None None None Core TBD None Full, Mid, Core Post Doc 1 2 3 4 5 6 7 8 9 10 11 13 14 15 20 21 22 23 14

Appendix Eligibility Table Benefits Package Initial Requirements Member of a UC-sponsored defined benefit retirement plan AND An appointment that is 50% or more for 12 or more months OR 1,000 Eligible hours worked in a rolling 12-month period, including previous UC employment NOT a member of a UC-sponsored defined benefit retirement plan AND Minimum 50% appointment for 12 months or more OR An appointment that is 100% for 3 or more months (but less than 12 months) Continuing Requirements Minimum 17.5 hours/week or 43.75% average paid time (APT) over rolling 12 month period Full Minimum 17.5 hours/week or 43.75% average paid time (APT) over rolling 12 month period Mid-Level Minimum 17.5 hours/week or 43.75% average paid time (APT) over rolling 12 month period Core Minimum 43.75% appointment for any duration Employee is ineligible for Health and Welfare Benefits because of excluded appointment type or does not meet the BELI 1 4 requirement: Appointed less than 43.75% and/or average paid time (APT) is less than 17.5 hours/week or 43.75%/month "Casual restricted" or student reserved position "Per diem" appointment "By Agreement" appointment without pay related to time on pay status "Without salary" appointment EMPL_CLASS = 23 None N/A Post-Doctoral Benefits 15

Appendix CBR rate group CBR rate group Academic Limited Description Faculty and Other Academics eligible for full benefits. Includes all employees that are not eligible for full benefits such as employees working less than 50% time that are not in the Student categories. Post Docs are included in this category. No Benefit Eligibility Employees not eligible for benefits that do not have Job Codes in the Students categories. Staff Exempt and Non-Exempt Employees in the Staff category eligible for full benefits. Student Employees with Job Codes in Student categories. Note: CBR rate groups are based on a roll up of employee class groups. 16

Appendix Post Docs Postdoctoral Scholar Postdoctoral Scholar Employee (Job Code 3252) Employee (Job Code 3252) An appointment is made in the title Postdoctoral Scholar Employee when (1) the agency funding the salary requires or permits the appointee to be an employee of the University, or (2) whenever General Funds, Opportunity Funds or other University discretionary funds are used to support the position. Postdoctoral Scholar Postdoctoral Scholar Fellow (Job Code 3253) Fellow (Job Code 3253) An appointment is made in the title Postdoctoral Scholar Fellow when the Postdoctoral Scholar has been awarded a fellowship or traineeship for postdoctoral study by an extramural agency and the fellowship or traineeship is paid through a University account. Postdoctoral Scholar Postdoctoral Scholar Paid Direct (Job Code 3254) Paid Direct (Job Code 3254) An appointment is made in the title Postdoctoral Scholar Paid Direct when the Postdoctoral Scholar has been awarded a fellowship or traineeship for postdoctoral study by an extramural agency and the agency pays the fellowship or traineeship directly to the Postdoctoral Scholar, rather than through the University. Such appointments shall have a without-salary status. For additional details go to the VSPA website at: https://vspa.berkeley.edu/postdocs 17

Appendix - Next steps for FY2019-20 and FY2020-21 For FY2019 For FY2019- -20 1. Update UCPath with the new CBR rates Date TBD. 2. True up FY2019-20 CBR assessment in the ledger based on the new CBR rates Date TBD. 3. True up FY2019-20 academic funding based on the new CBR rates (faculty funding and TAS) Date TBD. 4. Update Calplan with the new CBR rates and logic Date TBD. 5. Update Cal Answers including PI Portfolio with the new CBR rates and bring in CBR related fields such as CBR rate, Benefit Eligibility code, Employee class in Cal Answers to allow department to easily query CBR type of reports Date TBD. For For FY2020 FY2020- -21 21 Our goal is to secure FY2020-21 CBR rate approval prior to year end FY2019-20 and use the FY2020-21 CBR rates submitted to the Federal Government as FY2020-21 budgeted rate in Calplan. 20 18

Appendix Sample UCPath ledger detail Account - Desc Account Code 51200 100.00% REG Reference Payroll DOS Code REG Actuals Amount Source Desc Calculation Comments 51200 - Staff Salaries & Wages 16,716.04 UCPath Payroll a Base Pay - vacation accrued is recorded on the balance sheet 51200 - Staff Salaries & Wages 51200 - Staff Salaries & Wages 51200 5.00% SKL 51200 5.00% VAC SKL VAC 768.55 768.55 UCPath Payroll UCPath Payroll b c Sick leave taken Vacation taken is excluded from CBR calculation 51200 - Staff Salaries & Wages 51200 -10.00% REG REG (1,537.10) UCPath Payroll d=-(b+c) Offset for sick leave and vacation taken 53070 - Benefit Assess-Staff Regular 53070 Payroll Assessment 7,335.84 UCPath Payroll e CBR assessment expense 52011 - Vacation Assessment 52012 - Vacation Gross Reduction/Usage 52011 Payroll Assessment 52012 Payroll Assessment 1,435.27 (768.55) UCPath Payroll UCPath Payroll f g=-c 53709 - UCRP Supplmntl Assess-Interest 57310 - General & Empl Liability Insurance 53709 Payroll Assessment 57310 Payroll Assessment 108.66 247.18 UCPath Payroll UCPath Payroll h i Salary Base for CBR 15,947.49 a+b+d=a-c CBR Assessment 7,335.84 e CBR calculated rate 46.00% e/(a+b+d) 19

Appendix Changes in the CBR logic tree Post UCPath FY2019-20 Post UCPath in Earn Codes Excluded from CBR No CBR Assessment Summer salary Earn Codes for CBR group 01 and 03 Limited Employee Class - Staff Staff Eligibility Code F - Full Employee Class - Academic Academic Employee Class - Academic, Staff or Post Doc Eligibility Code C - Core, M - Mid Level Limited Employee Class - Academic, Staff or Post Doc Eligibility Code N - No No Benefits Eligibility Employee Class - Student Student 20