Sent to the KFS-Update Mailing List on Sept. 27, 2018
In order to repay Short Term Investment Pool (STIP) funds and external borrowings transferred to the University of California Retirement Plan (UCRP), all campus and medical center locations are charged an assessment on payroll. Previously, this was a single payroll assessment rate charged to all covered payroll. Beginning with May 2018 ledgers, there are now two assessment rates. This change was made to more clearly delineate the assessment on federal fund sources from the assessment on all fund sources. These rates are as follows:
- A principal assessment rate that hits object code 8630 in the amount of 1.05% to pay down the STIP note principal and external borrowing principal, charged to all sources of covered payroll.
- An interest assessment rate that hits object code 8690 in the amount of 0.65% to pay down the interest, charged to all non-federal sources of covered payroll.
Since the UC Office of the President (UCOP) has broken out UCRP assessment, these charges do not hit the general ledger every month with your payroll feed into KFS, only principal is hitting your ledgers each month. The Payroll Office is manually entering the interest into the GL at the end of every month. If you would like more information on the entry or would like to perform a cost transfer on these entries you should contact the Payroll Office at firstname.lastname@example.org.