Composite benefit rates are developed in order to cover the costs of fringe benefits offered by the university. The rate is determined by creating a pool of benefit costs and dividing by a salary base. The rates are negotiated by UCOP with the federal government one fiscal year at a time. This rate represents the percentage that will be assessed against the employee’s salary, and this amount will post to the same department and fund to which the individual employee's salary posts.
This year there are changes to the way Composite Benefit Rates (CBR) are calculated and approved. In previous years, we worked directly with the Department of Health and Human Services (DHHS) to set the approved rates. Now that we have implemented UCPath, rather than work directly with DHHS, we followed a standard process for calculating rates led by UCOP and adopted their agreements with the federal government.