UTSA Benefits:
Financial & Budgetary Implications
Employer Paid Benefits
UTSA Employer paid-contributions to fringe
benefits coverage include:



Workers’ Compensation Insurance
Unemployment Insurance
Group Insurance Premiums (for the employee’s health coverage, basic
term life, AD&D and a portion of the dependent health premium)

Old Age & Survivors Insurance (OASI) & Medicare 6.2%
(OASI) & 1.45% (Medicare) of wages up to the OASI max salary ($106,800 in 2009),
as required by federal law

Retirement- Employer’s Contribution (TRS/ORP)
TRS = defined benefits plan; ORP = defined contribution plan
http://www.utsa.edu/hr/benefits/Retirement/Index.cfm#Mandatory
June 2009
UTSA Financial Area Representatives
2
Employer Paid Benefits
Universal
Salary Supplement (this program includes
employees hired before Sept 2003 that earn less than $50K per year)
Longevity ($20 per month eff with 2 yrs of service up to 42 yrs of svc)
Vacation
& Sick Leave
http://www.utsystem.edu/OHR/vacationcarryover.htm
Sick
Leave Pool (income replacement for employees that qualify
per Chapter 661, Texas Government Code)
http://www.utsa.edu/hop/chapter4/4-26.cfm
Employee
Educational Assistance
http://129.115.102.107/hop/chapter4/4-8.cfm
Employee
Assistance Program
http://www.utsa.edu/HR/EmployeeRelations/eapinfo.cfm
June 2009
UTSA Financial Area Representatives
3
E&G Paid Benefits Costs
The
State of Texas General Appropriations
Act requires that payments of benefit costs
are proportional to funding from appropriated
funds.
General Appropriations Act, Art. IX §§ 6.08, 8.02 (c), 80th Leg., R.S.;
Sections 51.009 (a) and (c), Education Code
June 2009
UTSA Financial Area Representatives
4
E&G Paid Benefits Costs
General revenue is prohibited from paying
the benefits associated with salaries and
wages paid from other funding sources.

Each
November, UTSA submits a report to the
Texas State Comptroller to establish the
proportional percentage of benefit cost
sharing with the state
reconciles any over/under-billing during the
previous fiscal year.

https://fmx.cpa.state.tx.us/fm/pubs/aps/11/index.php
June 2009
UTSA Financial Area Representatives
5
E&G Employee Benefit Costs
Benefit
costs for eligible employees
appointed to E&G accounts (14-fund)
are paid from centrally managed
budgets.
June 2009
UTSA Financial Area Representatives
6
Other Funds Employee Benefit
Costs
Benefit
costs for eligible employees
appointed to non-E&G accounts are paid
directly by those fund sources:
18 Service Rate (chargeback) Operations
 19 Designated funds
 26 Grants & Contracts (charged to sponsor)
 29 Auxiliary Enterprises, and
 30 Gift funds

June 2009
UTSA Financial Area Representatives
7
E&G Paid Benefits Subject to
Proportionality



June 2009
OASI – State Match/Required Employer
Contribution
Group Insurance Program – Active & Retirees
Retirement (TRS/ORP) – limited to cost sharing
% allowed by the state for that given year
UTSA Financial Area Representatives
8
Benefits Proportion by Fund Report
Appropriation Year 2008
E&G Sources of Funding
General Revenue (68.8718%)
GR-Dedicated (31.1282%)
$82,192,155
37,148,599
Less Exclusion (1)
73.9879%
<8,252,161>
GR-Dedicated Subject to Proportionality 28,896,438 26.0121%
(1) The exclusion is the sum of OASI ER-state match, total
Group Insurance benefit paid, Teacher Retirement Contribution
and Optional Retirement Program (6%) paid times 31.1282%,
which is the pre-adjusted proportion of GR to GR-Dedicated
June 2009
UTSA Financial Area Representatives
9
Benefits Paid 100% by UTSA
Not Subject to State Proportional Cost Sharing
1st
90 days of health premium & retirement cost sharing
Payment
of the ORP Matching Differential Supplement is
optional; varying campus practices and the cost impacts are reviewed by Board
of Regents:
State Paid Base Rate going down from 6.58% (FY10) to 6.4% (FY11), <0.18%>
 Differential cost is covered from local funds and will increase from 0.73% to 0.91%;
1.19% to 1.37%; or 1.92 to 2.1% depending on employee’s ORP eligibility date.
 Employee Contribution Rate remains at 6.65%
50%
of the Premium Sharing for Graduate Students (optional,
and varies from campus to campus)
 State pays the other 50% so the entire amount of premium sharing is
covered
TRS
June 2009
Retiree Surcharge: 12.98% of salaries paid to active retirees
UTSA Financial Area Representatives
10
Benefits Paid 100% by UTSA
Not Subject to State Proportional Cost Sharing
Longevity
pay
Vacation payouts for terminating employees
Educational
benefits
 Optional, amount of benefit is currently determined by UTSA
Sick
Leave Pool
 When UTSA employees donate leave hours to the sick leave pool
the payout must covered as income replacement (salary)
June 2009
UTSA Financial Area Representatives
11
FY 2009 Centrally Funded
Benefits Budgets
Group Insurance Contribution
Est. State Proportional Share
Other Institutional Funds
E&G TOTAL
Educational Benefits
90 Day Benefit Supplement
GRAND TOTAL
June 2009
UTSA Financial Area Representatives
$ 8,304,535
$ 11,195,217
$ 14,664,030
$ 34,163,782
125,000
660,000
$ 34,948,782
12
FY 2009 Projected Budget
Variance
TOTAL BUDGET
$ 34,948,782
Estimated COSTS
$ 34,629,850
Projected Variance
$
318,932
(Exclusive of additional state contribution due to changes in
proportionality over budget)
June 2009
UTSA Financial Area Representatives
13
FY 2009 Benefit Proportionality
Cost Sharing
Budgeted Revenue
$ 11,195,217
Projected Payment
Estimated Variance
12,107,536
912,319
Total Est. Budget Variance $ 1,231,251
June 2009
UTSA Financial Area Representatives
14
FY 2009 Projected Costs
FY 2010 Projected Budget


Review Spreadsheet for Details
View the Payroll Website for details on benefit
contribution rates:
http://www.utsa.edu/payroll/fringe_benefit.html

View the HR Website for details on benefit
programs and eligibility:
http://www.utsa.edu/hr/Benefits/index.cfm
http://www.utsa.edu/hr/Benefits/Newsletter/BenefitsInBrief.pdf
June 2009
UTSA Financial Area Representatives
15