Benefits Recharge Distribution Rate for FY 2016
After careful review, the university's executive vice presidents have approved a benefits recharge rate of 2.10 percent of payroll for Fiscal Year 2016. This change represents an increase from the current fiscal year's rate of 2.05 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. Actively managing self-insured health plans and other benefits programs has helped control the rate of increase.
For more information about the benefits recharge distribution and the general ledger accounts subject to benefits recharge, please visit finops.umich.edu/reporting/brd.
If you have questions or comments regarding the benefits recharge rate, please feel free to contact me at firstname.lastname@example.org.