The following fringe benefit rates will become effective July 1, 1995 for the Doctoral Cluster Institutions (UW-Madison and UW-Milwaukee) and UW-Extension, and will be used when charging the employer’s contribution to fringe benefits on all new and on-going extramural projects and Trust funds.

The above rates include the University’s contribution to retirement, health and life insurance, social security, unemployment and worker’s compensation insurance, and income continuation insurance. The rates for Research Assistants and Pre-Doctoral and Post-Doctoral Fellows and/or Trainees represent the University’s contribution to health insurance only. Details are in the Components of the 1995-96 Fringe Benefits Rates table.

Please note the new student hourly employee fringe benefit rate. The rate was established to recover the University’s contribution to social security on student hourly wages. Social security is the only fringe benefit, and then only under certain circumstances, that applies to student hourly employees. In the past the fringe benefit pools have absorbed this cost. However, the cost has now become significant enough that it must be recovered through a separate rate.

We appreciate your assistance in assuring that all projects with an anticipated beginning date of July 1, 1995, or later, include the above rates. Dean’s and Departmental offices should update their copy of the "Extramural Support Guidelines" by inserting a copy of this memo into Appendix 17.