Fringe Benefit Pool
What is a Fringe Benefit Pool?
A fringe benefits pool is an allocation concept that clusters fringe benefits paid by the university for its employees. Employee groups are determined based on the fringe benefits offered to the employees within a particular group. A percentage is determined for each group by taking the fringe benefits costs paid by the university and dividing that amount by the total salaries and wages of that group.
Why a Fringe Benefit Pool?
Fringe rates offer more consistency for budgeting. Departments are charged a flat fringe rate as a percentage of an employee’s salary, rather than the actual cost of their benefits. This means it doesn’t matter if one employee has single medical coverage while another covers their whole family, since the department pays the same percent for both employees. The fringe rates also simplify the accounting on the back end.
What Benefits are included in the Pool?
Rates include: Employer costs of medical and dental insurance, retirement (IPERS/TIAA/Federal), group basic life and long-term disability insurance, worker's compensation, employee assistance program, FICA, Medicare, unemployment insurance and claims, sick leave and vacation payouts (disability and retirement), employee wellness program, employee tuition assistance, child care, and adoption benefit.
Do Fringe Rates Change?
Fringe rates are subject to change annually with the new fiscal year. ISU’s fiscal year starts July 1 each year. Changes to fringe benefit rates will be communicated by the Division of Operations and Finance as soon as possible once approval is received from the U.S. Department of Health and Human Services.
*Other Benefits include - Life, Disability, Work Comp, EAP, Unemployment, Tuition Assistance, Flex, Child Care, Wellness
**Leave payouts include - Sick Leave Payouts, Sick Leave LTD, Vacation Payouts (FY25) and Parental leave (in certain states where required)