New Fringe Benefit Rates (March 4, 2013)

in OSP News
March 6th, 2013

IDCMemo(4Mar13)

Boston University Senior Vice President, CFO & Treasurer 

881 Commonwealth Avenue, 4th Floor
Boston, Massachusetts 02215
T 617-353-2290  F 617-353-5492

Memorandum

To: Vice Presidents, Deans, Directors, Department Chairmen, Principal Investigators, and Project Directors
From: Martin J. Howard, Senior Vice President, CFO and Treasurer
Date: March 4, 2013
Subject: New Fringe Benefit Rates on Grants and Contracts
New Graduate Student Health Plan Rate for FY 2014
 

Boston University has recently concluded fringe benefit rate negotiations with the Department of Health & Human Services for the fiscal year 2014 beginning July 1, 2013.  The rate agreement is dated February 22, 2013.  The following rates should be reflected on all future grant and contract proposals where there is activity for the dates specified below:

July 1, 2012 – June 30, 2013
Federal and  

Federal Pass-

Through Awards*

Non- 

Federal

Awards

Professional 25.9% 27.8%
Support Staff 22.2% 24.2%
Consultants 8.0% 8.0%
Graduate Students 9.0% 9.0%
July 1, 2013 – Until Amended
Federal and 

Federal Pass-

Through Awards*

Non- 

Federal

Awards

Professional 28.0% 29.8%
Support Staff 23.7% 25.5%
Consultants N/A N/A**
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. 

**Effective July 1, 2013, there is no longer a consultant rate as all independent contractors should be paid through Accounts Payable and not the Payroll Office. Please refer to the new Independent Contractor Guidelines located here, effective December 2012.

The fringe benefit rates will be applied on a salary and wage basis. As you will note, FY2013 rates have increased 2.1% for professional staff and 1.5% for support staff over last year. The primary driver of these increases is more than an 11% increase in health related insurance costs the University pays for Boston University employees resulting in this additional fiscal burden on department budgets.

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. For more information on the OSP website please consult the OSP Information Sheet, or the online copy of the Indirect Cost/Fringe Benefit Rate Agreement.