Benefits Recharge Distribution Rate for FY 2012
After careful review, the university’s executive vice presidents have approved a benefits recharge distribution rate of 1.9 percent of payroll for Fiscal Year 2012. This change represents a decrease from the current fiscal year’s rate of 2.0 percent of payroll. The rate is analyzed and adjusted annually to ensure that we adequately meet expense obligations for the programs funded by the benefits recharge pool, such as retiree benefit programs including medical, prescription drugs, life insurance, dental and Medicare Part B premium reimbursements. Additionally, MHealthy rates for programs and rewards have been reduced for Fiscal Year 2012. The new rates will be $7.85 per month per employee to fund wellness programming and $5.00 per month per employee to fund the MHealthy Rewards incentive program. These amounts are reduced from the current level of $9.88 and $5.22 for programs and rewards respectively. Like the benefits recharge, these rates are evaluated and adjusted annually. You can view information about the benefits recharge distribution, including the current rate and qualifying expense account at the Financial Reporting section of this website. If you have questions or comments regarding the benefits recharge distribution rate, please feel free to contact Brian Watson in the Benefits Office at brwatson@umich.edu. If you have questions or comments regarding the Mhealthy rates, please feel free to contact Peggy Sheagren in the Mhealthy Office at sheagran@umich.edu.
