June 25, 2024
Dear Principal Investigators and Research Administrators:
While we wait for final approval of the new TUC benefit rates from our cognizant agency, US Department of Health and Human Services (DHHS) Division of Cost Allocation, we wanted to share with you the proposed rates that will affect all TUC funds and sponsored projects effective July 1, 2024. This will help you estimate and budget expenses for the coming fiscal year (24/25).
The new benefit rates are based on TUC’s actual benefit expenses and a standard calculation scheme imposed by DHHS. TUC has no direct influence on the results. Below will be charged to all sponsored programs for personnel costs incurred on or after July 1, 2024:
Rate 1: 6.8% (until to 6/30/24: 5.2%)
For employees receiving no benefits: student assistants and temporary appointment, including faculty additional pay
Rate 2: 17.4% (until to 6/30/24: 11.3%)
For hourly, casual, and salaried employees with retirement benefits only (2+ years of service)
Rate 3: 25.8% (until to 6/30/24: 19.6%)
For employees with health benefits but not yet eligible for retirement (less than 2 years of service)
Rate 4: 38.2% (until to 6/30/24: 36.7%)
For employees with health benefits and eligible for retirement (2+ years of service)
Any TUC payroll, including faculty additional pay, fully approved and processed by June 30 payroll deadline will have FY 23/24 benefit rates. Any TUC payroll fully approved after June 30 will have FY 24/25 benefit rates.
Please contact your Post-Award liaison should you have any questions.
Thank you,
Grace Slavik, Associate Executive Director, Financial Services