Financial Policies Training:
General Funds
Fringe Benefits
(2.1.25)
Effective: July 1, 2009
These PowerPoint slides are intended for training purposes. In
the event of any discrepancy or interpretation difference
between the policy and the slides, the policy dictates.
Background Information
The Board of Trustees Resolution approved
November 18, 2008 and the Structural Deficit Policy
(2.1.17) which became effective on that date state
that one of the corrective measures for addressing
the institutional deficit is the establishment of a
fringe benefits policy.
The General Funds Fringe Benefits Policy (2.1.25)
fulfills a component of that requirement.
Policy 2.1.25
Addresses UC general funds fringe benefits
Fringe benefits, depending on employee group and
choice, may include, for example:
Health and dental care insurance
Retirement contributions
Life and disability insurance
Tuition remission
Sick and vacation time off and payout
The fringe benefit fund is listed as a structural
overdraft as defined by university policy
Policy 2.1.25 States
Organizational units in the general
fund are responsible for funding
fringe benefits associated with
the changing of budgeted salaries
of employees in their respective
areas.
Standards for Fringe Benefit Funding
Apply to all benefits-eligible employee groups
Standards include:
For any increase to a salary budget (one-time or permanent)
outside of planned institutional annual increases, the org
unit must provide the associated increase of funding for
fringe benefits
Fringe benefits budgets must only be used for funding
benefits expenses
No other purpose is permitted
Use for (one-time or permanent) budget reductions is prohibited
Any decrease to a salary budget (one-time or permanent) will
not produce benefit dollars the org unit can transfer or use
for any other purpose
Budget Transfers
Funding transfers among salary general
ledger accounts:
When transferring funds between the same
salary general ledger account
Fringe benefits follow at the same rate regardless of
the cost center
When transferring funds among salary general
ledger accounts with different fringe rates
Fringe benefits will be credited regardless of the cost center
(If lower  higher rate) the unit must fund the difference
(If higher  lower rate) the cost differential is not released
back to the unit
Resources
General Funds Fringe Benefits Policy (2.1.25):
www.uc.edu/af/documents/policies/fringe.pdf
Structural Deficit Policy (2.1.17):
www.uc.edu/af/documents/policies/strdeficit.pdf
Fringe Benefit Rates and Rate Components
www.uc.edu/af/GCC/
Policy questions e-mail:
policyquestions@uc.edu