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Updated GAEL Fee Structure: General Ledger Impact

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The General and Employment Liability (GAEL) premium fee structure and rates were significantly updated for Fiscal Year 2025-2026.  

New Fee Structure

Previously, GAEL insurance premiums (General Liability, Employment Liability, Property Insurance, Loss Prevention Insurance, and Auto Liability programs) were charged using two variables and three flat rates. For the 2025-2026 Fiscal Year and on, most of the campus will be charged for these programs using a simplified, flat rate or Composite GAEL Rate (CGR).

More information about the updated premium fee structure and FY 25-26 rates can be found on the FY 2025-26 Campus Insurance Rates and Premiums June 2025 Memo. 

CGR Charges on the General Ledger

Under the previous fee structure, GAEL rates were charged separately under three subject and object codes. Going forward, only one charge will be made, appearing as GA on the General Ledger with a singular subject and object code of 03-7203.

GAEL Redirect Process

In cases where employees are paid using federal or federal flow through contracts and grants, GAEL charges must be redirected to an appropriate FAU(s). Historically, these charges have redirected to specific departmental FAUs, where additional work was required for appropriate processing.

We’re pleased to announce that going forward, the GAEL charge for applicable transactions will automatically redirect to one central FAU. This update eliminates unnecessary work for campus departments and the central processing team.

GAEL Rates for Salary Cost Transfers (SCTs)

GAEL charges on Salary Cost Transfers must utilize the GAEL rate(s) that were in effect during the employee’s earnings dates.

However, due to system limitations, SCTs that utilize earnings dates prior to the rate consolidation on July 1, 2025, will default to the FY 25-26 GAEL rate, resulting in a variance. The central team will manually resolve these variances in the General Ledger by processing financial journals on a monthly basis. 

Please do not submit a Benefit Cost Transfer (BCT) for these corrections, they will be identified and resolved without department action.

Questions?

If you have any questions, please create a case using the following information:

  • Topics: General Ledger
  • Category: General Inquiry General Ledger
  • GAEL Structure General Ledger Changes