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 are estimated when preparing sponsored project budgets.
OSU does not have a federally negotiated fringe benefit rate. 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.
The OSU Office of Budget and Planning provides annual updates to fringe benefit rates and estimated annual increases to cost categories to assist estimating expenses during budget development.
Standard Components of Fringe Benefit Rates
The following items are part of the direct charges for fringe benefits at OSU:
| Charged based on % of salary | Charged as a fixed dollar amount |
|---|---|
|
FICA (Federal Insurance Contributions Act) Taxes1 includes:
|
Health Insurance: plans vary, see details below |
| Retirement: plans vary, see details below | Workers' Compensation3: $1.91/month |
| Unemployment (Oregon Unemployment Insurance)2: 0.10% | |
|
Workers’ Compensation: (State Accident Insurance Fund or SAIF, workers’ compensation insurance for Oregon State employees): 0.31% |
|
|
Oregon Paid Family & Medical Leave (OPFML): 0.40% |
|
|
1Applies to all employees except students enrolled half-time or more, or international scholars with specific exemptions based on visa status and tax residency classification. |
|
Tuition/Fees as Fringe Benefits for Graduate Assistants
Tuition and fees are a required component of fringe benefits for Graduate Assistants under the Collective Bargaining Agreement: Coalition of Graduate Employees and Oregon State University. Current tuition and fee rates are online.
Retirement Plans
In most cases, permanent employees have a choice between two retirement plans:
- The Optional Retirement Plan (ORP), or
- Oregon Public Employees Retirement System (PERS) / Oregon Public Service Retirement Plan (OPSRP).
Retirement plans for permanent employees are available based on date of hire, which determines which retirement tier they fall into (Tier 1-4).
Permanent Employee Plans
Retirement plans are based on an employee’s original eligibility date with an Oregon Public University or an Oregon PERS participating employer and their current membership status. These plans are available for the following categories of employees:
- 12-month (calendar) appointment
- 9-month (academic) appointment
- 3-month (summer) appointment [for 9-month appointment faculty]
- Classified staff, at >0.5 FTE
| Date of Hire | Retirement Plan & Tier | Percentage Applied to Salary |
|---|---|---|
| Before 8/29/03 | PERS Tiers 1&2 | 35.62% |
| After 8/29/03 | PERS Tier 3 (OPSRP) | 32.74% |
| Before 8/29/03 | ORP Tiers 1&2 | 31.75% |
| 8/29/03-6/30/14 | ORP Tier 3 | 18.51% |
| After 7/1/14 (and not previously in retirement system) | ORP Tier 4 | 12.00% |
Postdoctoral Scholars, Students and Temporary/Wage Staff
Postdoctoral Scholars are provided with a flat rate plan of 4%. No retirement plans are available for graduate students or temporary/academic wage staff.
| Employment Type | Percentage Applied to Salary |
|---|---|
| Postdoctoral scholar | 4% |
| Graduate student | 0% |
| Temporary or academic wage staff | 0% |
Health Insurance
Standard Employee Health Insurance:
- For 12-month (calendar) appointment employees: Insurance costs are charged each month over the full 12-month period
- For 9-month (academic) appointment employees: A full year of health insurance is charged over 10 months (9-month employees do not receive paychecks in July and August)
- Costs are fixed, regardless of earnings level
| Employee Type | Monthly Rate |
|---|---|
| Permanent employee: 12-month (calendar) appointment | $1,658 |
|
Permanent employee: 9-month (academic) appointment, paid over 10 months |
$1,990 |
| Summer appointment for 9-month faculty | $0 |
| Classified staff, at less than 0.5 FTE | $0 |
Graduate Student Health Insurance
A different health insurance plan is provided for graduate assistants and graduate fellows, postdoctoral scholars, and clinical fellows, charged at a flat rate per employee.
- Graduate students are charged over their 9-month academic appointment and are provided coverage during summer months if they have a spring term appointment.
- Postdoctoral scholars on a 12-month appointment are charged each month.
- Rates for OSU academic year 2024-2025 are below. These are estimated to increase at a higher rate of 7% per year for FY26, per the OSU Office of Budget and Resource Planning.
| Employee Type | Monthly Rate |
|---|---|
| Postdoctoral Scholar | $600 |
| Graduate Assistant: Academic Year | $800 |
| Graduate Student: Summer | $0 |
Sea Pay
At Oregon State University, Sea Pay is budgeted as a personnel cost, and the fringe benefits associated are calculated using the same method as summer effort for 9-month faculty appointments. Benefits are based on the employee’s current fringe rate less the health insurance premium. See OSU’s policy regarding Sea Pay.