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July 2, 2013 / jimnv

It’s Gonna Hurt

PERS has new retirement contribution rates starting July 1st.  The new rates are necessary to keep the retirement system sound.

It costs money to be a state employee and it’s not like they make a ton of money. State employees have always paid their way … working hard for low wages is a hallmark of the average state employee. Sure, there are some lazy-butts out there as there are in all companies but all in all, state employees are a great group of people, dedicated to serving the public.

Bad attitudes toward state employees are rooted in ignorance and jealousy.

New Contribution Rates Effective July 1, 2013

Employer Pay Contribution Plan
Regular Members    Police/Fire Members
Existing Statutory Rate             23.75%                      39.75%
2012 Actuarial Rate                    25.72%                     40.54%
Difference                                           1.97%                        0.79%

Rate Effective 7/1/2013            25.75%*                  40.50%*
*Statutory rate changes and is rounded to the nearest one-quarter of 1% as difference between actuarial rate and
statutory rate is greater than .5%.
Employee/Employer Contribution Plan – Matching Rates
Regular Members     Police/Fire Members
Existing Statutory Rate           12.25%                               20.25%
2012 Actuarial Rate                 13.365%                           20.77%
Difference                                         1.115%                              0.52%
Rate Effective 7/1/2013           13.25%*                          20.75%**

*Statutory matching rate for regular members changes and is rounded to 13.25% beginning July of 2013.
**Statutory matching rate for police/fire members changes and is rounded to 20.75% beginning July 2013, as
difference between actuarial rate and statutory rate is greater than .25%.
A formal Liaison Officer memorandum with an explanation of the new contribution rates will
be distributed shortly. All contribution rates are shared equally between the employer and the
employee.

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