UTSA Benefits: Financial & Budgetary Implications

1. UTSA Benefits:Financial & Budgetary Implications

2. 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 UTSA Financial Area Representatives

3. 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 UTSA Financial Area Representatives

4. 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 UTSA Financial Area Representatives

5. 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 UTSA Financial Area Representatives

6. E&G Employee Benefit Costs • Benefit costs for eligible employees appointed to E&G accounts (14-fund) are paid from centrally managed budgets. UTSA Financial Area Representatives

7. 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 UTSA Financial Area Representatives

8. E&G Paid Benefits Subject to Proportionality • 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

9. Benefits Proportion by Fund ReportAppropriation Year 2008 E&G Sources of Funding General Revenue (68.8718%)$82,192,15573.9879% GR-Dedicated (31.1282%)37,148,599 Less Exclusion (1) <8,252,161> GR-Dedicated Subject to Proportionality28,896,43826.0121% (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 UTSA Financial Area Representatives

10. 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 Retiree Surcharge:12.98% of salaries paid to active retirees UTSA Financial Area Representatives

11. 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) UTSA Financial Area Representatives

12. FY 2009 Centrally Funded Benefits Budgets Group Insurance Contribution $ 8,304,535 Est. State Proportional Share $ 11,195,217 Other Institutional Funds $ 14,664,030 E&G TOTAL $ 34,163,782 Educational Benefits 125,000 90 Day Benefit Supplement 660,000 GRAND TOTAL $ 34,948,782 UTSA Financial Area Representatives

13. 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) UTSA Financial Area Representatives

14. FY 2009 Benefit Proportionality Cost Sharing Budgeted Revenue $ 11,195,217 Projected Payment 12,107,536 Estimated Variance 912,319 Total Est. Budget Variance $ 1,231,251 UTSA Financial Area Representatives

15. FY 2009 Projected CostsFY 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 UTSA Financial Area Representatives