Fringe Benefit Rates

Since the University uses fringe benefit rates for purposes of charging benefits to sponsored projects, it is required by the Department of Health and Human Services (DHHS) to submit and negotiate an annual fringe benefit proposal.  This process is carried out by the University’s Budget Office and, when finalized, the rates are appended to the University’s F&A Rate Agreement.

FY 2022 Fringe Benefit Rates

The University of Minnesota Office of Budget and Finance has received an offer from the Department of Health and Human Services (DHHS) Cost Allocation Services for the FY22 fringe benefit rates as follows:

FY22 Fringe Benefit Rates

• Academic = 33.5%
• Non-Academic = 28.7%
• Student Professional with GA Health = 23.6%
• Trades = 7.5%
• Student Professional with UPlan Health = 20.9%

Due to backlogs at the DHHS, the signed rate agreement has not yet been received, but the rates are not expected to change. Except for proposals that meet one of the exceptions listed below, these rates must be used in sponsored proposal budgets for all proposals that arrive in SPA on or after July 1st. Revisions to proposal budgets will not be required if any of the following conditions exist:

• The proposal has already been submitted to SPA
• The proposal will be submitted to SPA prior to July 1st
• The PRF has already been created and the proposal has been routed for approval

However, it will be necessary to update the rates in all other proposal budgets that are in process.

The EGMS support team has updated EGMS to reflect these new rates.

The Budget Office will soon be posting the fringe rate matrix and graduate tuition remission table at U Budget Instructions: Annual Budget. After the Board of Regents approves the FY22 budget, those documents will also appear in the appendices section of the budget policy.

Please contact David Hagen (hagen027@umn.edu), Director of the Office of Cost Analysis, if you have questions about using the new rates in your proposals.