Composite Benefit Rates Overview
With the introduction of UCPath, UCSF will post employee benefit costs using Composite Benefit Rates (CBRs) instead of actual individual benefit costs for each employee.
CBRs apply the average cost of benefits for an employee group
The rates applied in CBRs are an average of all eligible benefits applicable to a benefit group. Employees are assigned to a benefit group based on job code and benefits eligibility. The composite benefit rate equals the total cost of benefit for the group divided by the total salaries of the group.
CBRs will simplify financial planning and analysis
| Current Environment (PPS) | Under UCPath | |
|---|---|---|
| Recording of Benefits | Actual costs of each employee, recorded by individual benefit | A single benefit entry for each employee covering most benefits, based on the composite rate. Several benefit items will remain separate charges. |
| Department Cost | Departmental costs vary due to the personal circumstances of employees | Variation in actual costs by employee is shared across the campus |
| Planning | Planning is more complex and less accurate | Simplifies and improves planning processes, since benefit costs can be projected easily |
CBRs will result in cost shifts across units and funds
Because CBRs apply average benefit costs rather than actual individual employee costs, CBRs will result in higher benefit costs for some departments and funds and lower benefit costs for other departments and funds. For some units, allocations will be adjusted to address the cost increase or reduction. Following are some of the reasons costs shifts will occur.
| Current Environment (PPS) | Under UCPath | |
|---|---|---|
| Salary Levels | Higher pay typically means a lower individual benefits rates, while lower pay typically means a higher individual benefits rates. | Regardless of salary level, employees with the same job code and benefit eligibility will be assigned the same average benefit rate. |
| Funding sources and benefit eligibility for different types of pay | Z payments have little or no benefit costs, while Y payments are not covered by UCRP. If X and Y are funded from different sources, these sources currently have different effective benefits rates. |
While Z payments will not be charged for any benefits at all, X and Y salary components will be charged the approved rate. |
| Employee Benefit Selections | Some employees have more dependents and might have higher benefit costs charged to the department. | Higher benefit costs related to family circumstances will be shared across all departments. |
CBRs will be applied to all salary types except:
- By agreement, clinical or physician pay (Z component)
- Housing, auto and uniform allowances
- Incentive performance awards
- Hiring and relocation pay
- Termination and severance pay
Most benefits will be included in CBRs, but several benefits will continue to be assessed separately
| Benefits assessed under CBRs | Benefits assessed separately  |
|---|---|
|
Retirement:
Payroll Taxes and Assessments:
Health & Welfare:
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