At Oregon State University (OSU), fringe benefits are commonly referred to as Other Payroll Expenses (OPE). This page provides an overview for how these expenses should be estimated when preparing sponsored project budgets.

OSU does not have federally negotiated fringe benefits rates. Instead, OSU's federally negotiated F&A rate agreement includes the following statement regarding treatment of fringe benefits: "The fringe benefits are specifically identified to each employee and are charged individually as direct costs." As such, the fringe benefit (OPE) rate estimated/charged is unique to each individual employee based upon their employment type, gross pay amounts, retirement eligibility, benefits and even job location. 

When preparing a sponsored project budget, either current actual or estimated fringe benefit (OPE) rates may be used. The associated budget justification should indicate the rate budgeted for each person and whether it is based on actual of estimated rates. If awarded, an employee's actual fringe benefits (OPE) will be charged to a project as a direct cost at the time work is performed, in correlation with the salary charged for that individual. 

Actual Fringe Benefit Calculations

Sponsored projects budgets may be prepared using actual fringe benefit (OPE) rates per individual employee, as provided by recent payroll reports. For multi-year projects, reasonable escalation (1-3%) should be included to accommodate for rate increases in future years. Detailed rate information can be found in the OPE rate tables

Fringe benefits (OPE) at OSU include the following:

Charged based on percentage of salary Charged as a fixed dollar amount
Social Security Medical Insurance
Medicare Workers Compensation
Retirement Benefits  
Unemployment  
State Accident Insurance Fund (SAIF, workers' compensation insurance for Oregon State employees)  

Estimated Fringe Benefit Calculations

Sponsored project budgets may instead be prepared using estimated fringe benefit (OPE) rates. As an example, the estimated fringe benefit rates provided in the table below are based on blended rate estimates provided by the OSU Office of Budget and Resource Planning. These rates are averages to be used for budgeting and planning purposes only. 

Monthly Salary

Annual Salary

Fiscal Year ‘20
July 1, 2019 –
June 30, 2020

Fiscal Year ‘21
July 1, 2020 –
June 30, 2021

Fiscal Year ‘22
July 1, 2021 –
June 30, 2022

$12,000 or more

$144,000 or more

45%

47%

49%

$11,000

$132,000

46%

48%

50%

$10,000

$120,000

47%

49%

51%

$9,000

$108,000

49%

51%

53%

$8,000

$96,000

51%

53%

55%

$7,000

$84,000

53%

55%

57%

$6,000

$72,000

56%

57%

59%

$5,000

$60,000

61%

62%

64%

$4,000

$48,000

68%

69%

71%

$3,000

$36,000

80%

81%

83%

OPE Information Updated 9/1/19

Historical Fringe Benefit (OPE) Rates (Word)

Notes: 

These fringe benefit rates are based on the blended rate estimates provided by the OSU Office of Budget and Resource Planning. Fringe benefits include retirement benefits, medical insurance, Social Security, Medicare, Unemployment and SAIF.

Detailed rate information is found in the OPE rate tables

Exceptions To The Fringe Benefit (OPE) Rates
 

Fiscal Year ‘20

Fiscal Year ‘21

Fiscal Year ‘22

Unclassified -

OPE on summer salary for an individual with a 9 month appointment - See Note 1

Unclassified -

90 days or more, less than .50 FTE

34%

 

34%

35%

 

35%

35%

 

35%

Classified -

Permanent, less than .50 FTE per month

34%

35%

35%

Temporary Staff -

(Including 1040-Hour Appointment) - less than .50 FTE - See Note 2

11%

13%

14%

OSU Sea Pay –

32%

33%

34%

Graduate Students on Assistantships – See Notes 3 and 4

34%

36%

38%

Hourly Students

10%

10%

10%

Postdoctoral Scholars on Stipend

Variable - confirm rate with
Business Center or Department

 

 

Notes:

  1. Disclaimer: This reduced summer rate only applies to those employees who are triple charged during the academic year so that medical benefits are covered in the summer. If summer insurance benefits are not triple charged during the academic year, the regular OPE rate should be used. Check with the Business Center or department accountant if unsure whether OPE is triple charged during the academic year.
  2. Employees not eligible for PERS currently estimated at a rate of 11%.
  3. Graduate Assistant health insurance is estimated at $1,824 per term for academic year 2019-2020. This includes 1/9th monthly payment during AY for summer insurance coverage. If coverage does not include summer insurance, AY per term cost is $1,368.
  4. More information regarding Graduate Assistant health insurance.