Marquette has been negotiating a federally approved fringe benefit rate annually for external grant applications since 2019.
The new rates, effective July 1, 2022, are 11.5% for employees and 0.4% for students. The decrease in the federally negotiated rates (currently 25.06% and 1.32% respectively) is due in large part to the university’s significant decrease in benefit spending because of the temporary suspension of the 403b retirement plan match. The match has since been reinstated.
The rate only affects faculty, staff and students who are grant-funded. This is strictly an accounting process and will not change the actual benefits received.
Rates are approved on an annual basis, and the rates may change from year to year. Past changes have been quite small; this year’s rate change is unique due to COVID. It is expected that the fringe benefit rate will be restored to a higher rate in 2023.