Jan. 14, 2010 - In September of 1999, costs for the 18/20 retirement program were removed from the pooled fringe benefit rate charged to sponsored programs (see Important Notice 99-8). As of that change, the entire cost for the 18/20 retirement program was shifted to non-sponsored program accounts and two separate fringe benefit rates were created; one for sponsored programs and another for other sources of funding (e.g. general funds, etc). The Office of Research Administration (ORA) has been advised by the IU Budget Office that sponsored programs will be required to fully recover retirement costs for grant-funded faculty and professional staff effective July 1, 2011. This change will eliminate the subsidization of 18/20 costs related to sponsored programs funding. This most recent change is part of the University’s response to significant funding cuts in state appropriations.
For proposals with project periods beginning July1, 2011, or later, ORA advises budgeting a 5 percentage point increase over the current rate, or 39.72%, for fringe benefits for academic and professional appointees. For example if you are submitting a multi-year project with a start date of 9/1/2010, use the current rate of 34.72% for the first year and 39.72% for each year thereafter. If your start date is 7/1/2011 use the rate of 39.72% for all years. We will be sharing additional details of this change as they become known to ORA.