Accounting & Financial Reporting

Composite Benefit Rate Add-On

Frequently Asked Questions

What is the Composite Benefit Rate Add-On (CBR-Add-On)?

Under the 2015-16 state budget agreement with the Governor, the University of California received $436 million in one-time funds over three years in Proposition 2 debt repayment funds for the UC Retirement Plan (UCRP). Since the state funds are contributed directly to UCRP, all the University’s funding sources, rather than just the State General Fund, benefit from these additional retirement contributions. This essentially lowers the composite benefit rate on all funds. As such, UCOP is encouraging campuses to assess funding sources other than core funds of State appropriations and tuition, where allowable, to ensure that State General Funds and tuition fully benefit from the investment by the State. The assessed funds will be used to reduce the campuswide General Funds and tuition deficit.

The CBR Add-On is an automatic process to assess the appropriate funds to recover the savings in UCRP costs. The assessment is based off of monthly salary expenses and post to Object Code 8510 within Object Consolidation SUB6 - Employee Benefits.

Full details are available on the Budget & Institutional Analysis Composite Benefit Rate Add-On Overview.

What are the allowable funding sources for campus units?

Allowable sources include such sources as Auxiliary, Med Comp funds, Student Services Fee, Campus Based Fees, Professional Degree Supplemental Tuition, and Indirect Cost Recovery.

What are excluded fund sources?

Excluded fund sources, based on guidance from UCOP, include state General Fund and tuition, Contracts & Grants, recharge activities that charge Contracts & Grants, and State Appropriations.

Accounts with the following attributes are excluded:

  • Sub-Fund Group Type: 1, B, C, D, F, G, H, J, L, N, P, S, V, W, X
  • Sub Fund Groups: SSEDAC, SSEDPI, and OSSSO
  • UC Funds: 19942, 20094, 20095, 20321, 20323
What are the assessments based on?

The assessments are based on specific payroll Object Consolidations and Expense (EX) account types only.

  • Object Consolidations: SB01, SB02, SB03, SB04, SB05, SB06, SB07, SUBS, SUBG, SUBX

Only accounts in Charts 3 and S are included.

The assessment rate is based on UC Office of the President estimates of the payroll assessment that would have otherwise been required if equivalent funds had instead been borrowed from STIP (cash reserves) and repaid over time. The rate is the same for all Chart 3 and Chart S accounts. Chart H will be assessed separately. A detailed breakdown is available on the Budget & Institutional Analysis Composite Benefit Rate Add-On Overview.

What is the Assessment Rate?

As additional funds are transferred from the State to UCRP, the annual assessments will increase for several years and then level off until fully paid off by 2041-42, as follows:

CBR Add-On Assessment Rates

How will the transaction show in FIS Decision Support (DS)?

The CBR Add-On will be generated monthly at the end of the fiscal period, after all payroll transactions have posted, to Object Code 8510 within Object Consolidation SUB6 - Employee Benefits.

The transaction line description will show as CBR Add-On Assessment Month (MM) - Year (YY).

Can the CBR Add-On Expense be transferred?

The CBR Add-On is restricted from expense transfer documents such as the General Error Correction (GEC) and Distribution of Income and Expense (DI) in the Kuali Financial System (KFS). It has to stay with the salary that generated it. If salary is transferred on the Salary Expense Transfer (SET) document, the adjustment will be included when the CBR Add-On assessment is generated at the end of the fiscal period.

Why does the CBR Add-On Object Code 8510 not show on the Payroll Expense Distribution Report (FIS339) in FIS Decision Support?
The CBR Add-On object code 8510 does not show on the FIS339 report because it is a general assessment on total payroll, which is not applied to specific employees. It is assessed in a similar process as GAEL and GAEL also does not show on FIS339.

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