STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2003-29

July 1, 2003

TO THE HEADS OF ALL STATE AGENCIES

The rates listed on the attached chart are effective July 1, 2003 and should be used for any fringe benefit cost recovery taking place on or after July 1, 2003. 

All personal service expenditures from Federal and Private Grants accounted for in the General Fund and any funds other than the General Fund are subject to fringe benefit cost recovery. 

The FICA component has been split into two parts, FICA-Social Security and FICA-Medicare. Where appropriate, rates have been established for those classes of employees that contribute to only the FICA-Medicare portion. 

Rates have been established for employees covered by the Hazardous Duty Retirement Plan and the Judges/Compensation Commissioners Retirement Plan. Continue to use existing expenditure object coding for payroll purposes. In order that the appropriate fringe benefit rate be applied, a variance is now required when paying employees covered by the Hazardous Duty Retirement Plan, the Judges/Compensation Commissioners Retirement Plan from any funding source subject to fringe benefit cost recovery.

Accrued Leave Payments

In order to comply with the requirements made necessary by a change in procedure in paying accrued leave at the death of an employee (See Comptroller's Memoranda No. 2000-34) all accrued leave payments, regardless of the employee retirement plan and reason, must use one of the following expenditure objects: 

• 01-090 - Accrued Sick Leave at Retirement or Death - Subject to FICA/Medicare;
• 01-220 - Accrued Sick Leave at Retirement or Death - Not Subject to FICA/Medicare;
• 01-120 - Accrued Vacation at Termination, Retirement, or Death - Subject to FICA/Medicare;
• 01-190 - Accrued Vacation at Death - Not Subject to FICA/Medicare.

In addition, please contact the Cost Reporting Unit of the Budget and Financial Analysis Division for the application of the appropriate rate prior to making accrued leave payments from any funding source subject to fringe benefit cost recovery to employees who are members of the following: 

• Hazardous Duty Retirement Plan;
• Teacher's Retirement System;
• Alternate Retirement Plan; or
• Judges/Compensation Commissioner's Retirement System.

Variances - New Requests Required

All variances approved in Fiscal Year 2002-03 or earlier will be deleted for check date August 21, 2003. Variances for Fiscal Year 2003-04 will require a new request.

If there are any questions, please call the Cost Reporting Unit of the Budget and Financial Analysis Division at (860) 702-3364.

NANCY WYMAN
STATE COMPTROLLER

NW:RG

Attachment

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