At Oregon State University (OSU), Fringe Benefits are commonly referred to as Other Payroll Expenses (OPE). This page provides an overview of how these expenses are estimated when preparing sponsored project budgets.
OSU will adopt a simplified process for charging employee fringe benefit costs beginning July 1, 2026. This method, known as “pooled” fringe benefit rates, applies fixed rates based on employee groups. This change will be university-wide for OSU and is allowable for sponsored projects by the Federal Office of Management and Budget.
This approach replaces the individual fringe benefit charging method previously used and aligns OSU with common R1 institution practices to simplify budgeting, improve forecasting, and reduce administrative burden.
The OSU Office of Budget and Resource Planning provides updates to fringe benefit rates and more information on OSU’s transition to the Pooled Fringe Benefit model.
All proposals expected to be awarded July 1, 2026 or later must use the new Pooled Fringe Benefit Rates below. Historical Fringe Benefit rates and associated information is available for reference.
Proposed Pooled Fringe Benefit Rates July 1, 2026 – June 30, 2027
| Employee Classification | FY27 Fringe Pool Rate |
|---|---|
|
Professional & Academic Faculty |
50.7% |
| Classified Staff (CA, CB, CD, CE, PL) | 61.6% |
| Part Time & Temporary (UC, TS) | 31.2% |
| Graduate Employee (XB) | 28.5% |
| Postdoc (UP) | 20.9% |
| Student Employees (XA) | 2.7% |
| Note: Different rates apply for Athletics Fringe Benefits | |
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 between the Coalition of Graduate Employees and Oregon State University. Current tuition and fee rates are online.
Historic Fringe Benefit Rates through FY26
Prior to July 1, 2026, fringe benefits were specifically identified for each employee and charged individually as direct costs. As such, the fringe benefit (OPE) rates estimated and charged previously were unique to each individual employee based upon their employment type, gross pay amounts, retirement eligibility, benefits and even job location.
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. |
|
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 |