Departments are charged a benefit rate and a leave rate for their employees. These rates are evaluated and adjusted each year based on benefit premiums and market fluctuations.
The benefit rate, comprised of a per-person component and a pay-based component, helps fund the university's portion of benefits related benefit-eligible employees (e.g., subsidize insurance premiums, match retirement contributions, etc.). The benefit rate is levied on all benefit-eligible employees.
A separate leave rate (effective Jan. 1, 2024), levied only on leave-eligible employees, funds the qualified leave plans (short-term disability, parental leave and caregiver leave), as well as unused leave paid at separation (campus units only). This rate is separate from the benefit rate because not all benefit-eligible employees are eligible to participate in the leave program.
Benefit and Leave Rates
| Benefit and Leave Rates per Fiscal Year | ||||||||
|---|---|---|---|---|---|---|---|---|
| Universities and UM System central office | Hospital | |||||||
| Benefits rate per-person component (annual) | Benefits rate pay-based component | Leave rate (Jan. 2024)* | FICA | Benefits rate per-person component (annual) | Benefits rate pay-based | |||