FY 2019 20 Composite Benefit Rates approved rates

FY 2019 -20 Composite Benefit Rates approved rates review December 10 th 2019

A. NEW UCOP 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 FY 2019 -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 4

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

E. CBR rates for FY 20 For FY 2019 -20, CBR rates were developed based on forecasted salaries and associated fringe benefits in each CBR groups. 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 FY 2019 -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 10

Appendix – Historical rates Note: CBR rates were rounded to zero decimal starting in FY 16 which created additional swings in the CBR pool. The proposal for FY 20 is to round to one decimal only. 11

Appendix - FY 2019 -20 Fringe Benefit Rate Projection 12

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

Appendix – Employee Class 14

Appendix – Eligibility Table 15

Appendix – CBR rate group Note: CBR rate groups are based on a roll up of employee class groups. 16

Appendix – Post Docs • Postdoctoral Scholar – 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 – 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 – 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 FY 2019 -20 and FY 2020 -21 For FY 2019 -20 1. 2. 3. 4. 5. Update UCPath with the new CBR rates – Date TBD. True up FY 2019 -20 CBR assessment in the ledger based on the new CBR rates – Date TBD. True up FY 2019 -20 academic funding based on the new CBR rates (faculty funding and TAS) – Date TBD. Update Calplan with the new CBR rates and logic – Date TBD. 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 FY 2020 -21 Our goal is to secure FY 2020 -21 CBR rate approval prior to year end FY 2019 -20 and use the FY 2020 -21 CBR rates submitted to the Federal Government as FY 2020 -21 budgeted rate in Calplan. 18

Appendix – Sample UCPath ledger detail 19

Appendix – Changes in the CBR logic tree – Post UCPath in FY 2019 -20 20