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January 8, 2011 / jimnv

PERS Contribution Rates to Rise

PERS will increase the contribution rate for all public employees by 1.125 percent and a 2 percent increase for firefighters and police starting next fiscal year (July 1, 2011). PERS is doing this to ensure the retirement system is sound and to pay off the unfunded liability within a reasonable amount of time. Currently, they have about $24 billion in assets, a $10 billion unfunded liability and they serve about 183,000 participants (active and retired public employees).

Though local public employees can make the contribution rates part of their salary negotiations, state employees cannot because they have no collective bargaining rights.

The PERS increase is in addition to the 4.6 percent salary reduction because of one day a month furlough. There is no word from Sandoval regarding pay cuts in addition to the furlough days.

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