Fringe Benefit Rates

Boston University has recently concluded Fringe Benefit Rate negotiations with the Department of Health and Human Services for the fiscal year 2015 beginning July 1, 2014. The rate agreement is dated February 28, 2014. The following rates should be reflected on all future grant and contract proposals where there is activity for the dates specified below:

July 1, 2014 -Until Amended

Federal and Federal Pass-Through Awards* Non-Federal Awards
Professional 27.6% 29.2%
Support Staff 24.9% 26.5%
Graduate Students 9.5% 9.5%

July 1, 2013 -June 30, 2014

Federal and Federal Pass-Through Awards* Non-Federal Awards
Professional 28.0% 29.8%
Support Staff 23.7% 25.5%
Graduate Students 9.2% 9.2%

*Awards from non-federal sponsors, where the prime award is from a federal agency, are subject to the rate applicable to federal awards.

In accordance with federal regulations governing the calculation of fringe benefit rates, Boston University has removed the costs associated with tuition remission for family members of employees from the federal fringe benefit costs pool. Although the federal government has disallowed tuition remission for family members as a component of the fringe benefit rate, Boston University’s fringe benefit policy for faculty and staff, including family members, remains unchanged.

In order to continue this benefit for our employees and their family members, it is necessary to establish separate fringe benefit rates for federal awards (including awards with federal pass-through funding) and non-federal awards. The non-federal fringe benefit rates include the costs of tuition remission for family members of employees.

The Graduate Student Health Plan rate will be applied to the amounts paid to graduate students (GL accounts 500410, 500420) supported by continuing awards and new sponsored program awards, as well as those supported by endowment, gifts, or discretionary accounts.

The above rates are effective immediately on new proposals for the period indicated.
Questions regarding the use of these rates on proposal budgets should be referred to the Office of Sponsored Programs on the Charles River Campus at (617) 353-4365 and the Medical Campus at (617) 638-4600.