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
  • Honoraria
  • Damage 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:

  • UCRP Employer Contribution

Payroll Taxes and Assessments:

  • OASDI (Social Security)
  • Medicare
  • Workers Compensation
  • Unemployment Insurance
  • UCDI Insurance
  • PSBP Disability
  • PSBP Workers Compensation

Health & Welfare:

  • Health Insurance Contribution
  • Retiree Health (OPEB)
  • Dental Insurance
  • Vision Insurance
  • Benefits Administration
  • Employee Support Program
  • Core Medical Insurance
  • Life Insurance
  • Senior Management Supplement
  • PSBP Broker Fee
  • PSBP Life Insurance
  • Core Life Insurance
  • Vacation Leave Assessment (VLA)
  • Faculty Childbearing and Childrearing Assessment
  • UCRP STIP Loan Repayment Component
  • General, Auto, and Employment Liability (GAEL)
  • Graduate Student Tuition and Fee Remissions
  • All benefits processed outside of payroll