FY25 raise pool announced, health benefits cost will not increase for employees

Although the cost of Ohio University’s healthcare premiums benefits is expected to once again increase by approximately 9 percent in fiscal year 2025, the University will cover all cost escalation and will not increase premiums for faculty and staff.

In addition, faculty and administrative staff hired before January 1, 2024, will once again be eligible for a fiscal year salary increase.

“We want our employees to see increases in their compensation that are not offset by increases in benefits cost,” said OHIO President Lori Stewart Gonzalez. “We also want to ensure our benefits costs are highly competitive with other universities, and this approach will help us move toward that goal.”

The faculty and staff benefits plan includes faculty, administrators, AFSCME (American Federation of State, County, and Municipal Employees) 3200 and FOP (Fraternal Order of Police) Police Officers. None of those employee groups will see an increase in health benefits costs in FY25. Dental premiums will increase by approximately 1.8 percent while vision, life and short-term disability insurance premiums will remain at current levels. AFSCME 1699 health plan premiums will increase as indicated in the AFSCME 1699 bargaining agreement.

In addition to holding benefits cost flat, the University will allocate funding to each University division equal to 2 percent of salary for eligible employees to fund merit-based raises. Eligible employees will receive a raise ranging from 0.5 percent to 5 percent, with the final raise amount determined at the unit level and tied to the individual’s performance evaluation.

Members of AFSCME (American Federation of State, County, and Municipal Employees) 3200, AFSCME 1699, FOP (Fraternal Order of Police) Police Officers, & FOP Police Lieutenants will receive a 2 percent salary increase as outlined in their collective bargaining agreements.

Details on raise eligibility guidelines as well as further details on employee benefits costs will be available on the HR website in the coming weeks. This year's Open Enrollment period is scheduled to begin April 15, 2024.

This article also appeared on the OHIO News webpage.