Fringe Benefits Rate Change

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To: NYU Research Community

From:

Richard Louth
Director, Office of Sponsored Programs

Ken Heck
Assistant Controller for Research/Contract Office

The University has reached a negotiated agreement with the Federal Government, dated June 5, 2008 , for a composite fringe benefit rate of 27% of salaries and wages which is fixed for the period September 1, 2007 to August 31, 2009, and provisional thereafter. This rate will be charged to all sponsored projects in Funds 24 and 25, and should be incorporated immediately into all proposals submitted to external sponsors, public and private.

It has been NYU’s practice to project an annual increase in this fringe rate (most recently 0.5 points per annum) in anticipation of increased health care costs, etc.; our current rate of recovery, however, does not justify such an increase. In addition, this practice has been met with increased resistance from financially-strapped federal sponsors.

As a result, the Finance Office now recommends that we continue to estimate fringe benefits at 27% through August 31, 2011, with a 0.5 point projected increase for each two year period thereafter (i.e., 27.5% on 09/01/2011, 28% on 09/01/2013, etc.) until further notice. See OSP’s website for a detailed rate chart.

Note as before that the fringe benefit rate for all purposes other than sponsored programs is set by University officers at a higher rate (the Federal Government excludes recovery for dependent tuition remission), currently 28.5% of salaries and wages.

Please contact either of us if there are any questions. Thank you in advance for your cooperation.

View the updated rates at http://www.nyu.edu/osp/policies/basicinfo.php