|
 Pension Contribution Rates Set For 2009-2011 Biennium
The Pension Funding Council adopted pension contribution rates for 2009-2011, as recommended by the Office of the State Actuary. The new rates assume a 4.25% general salary growth (down from 4.50%) and mortality improvements which assume members will live longer. The following charts provide information on current and newly-adopted rates, which go into effect on July 1, 2009.
Employer Contribution Rates*
|
System |
2009-11 Rates |
Current Rates |
Difference |
|
PERS 1/2/3 |
8% |
8.31% |
-0.31% |
|
LEOFF 1 |
.16% |
.16% |
0.00% |
|
PSERS |
10.22% |
9.43% |
0.79% |
*Includes current DRS administrative expense rate of 0.16%
Member Contribution Rates
|
System |
2009-11 Rates |
Current Rates |
Difference |
|
PERS 2** |
4.61% |
5.45% |
-0.84% |
|
LEOFF 1 |
0.00% |
0.00% |
0.00% |
|
PSERS |
6.94% |
6.57% |
0.37% |
** PERS 1 member contribution rates are set in statute at 6%. PERS 3 members contribute to the defined contribution portion of their benefit at a self-selected rate.
The Law Enforcement Officers and Fire Fighters’ Plan 2 Retirement Board (LEOFF 2 Board) adopted future pension contribution rates based on a four-year schedule. The LEOFF 2 Board has the discretion to adopt rates periodically based on the Office of the State Actuary’s (ASO) actuarial valuation or they could adopt a fixed rate based on the plan’s expected long-term cost.
The following fixed rate plan, based on the OSA’s June 30, 2007 Actuarial Valuation Report and projected improvements in mortality (longer life span), results in slightly lower future contribution rates. The LEOFF 2 Board did not elect to adopt the ASO’s reduced salary growth assumption.
LEOFF Plan 2 Contribution Rates
| |
Member |
Employer*** |
|
July 1, 2009 –
June 30, 2013 |
8.45% |
5.23% |
|
Current rates
through June 30, 2009 |
8.83% |
5.46% |
***Includes current DRS administrative expense rate of 0.16%
[ return to top
]
[ next
article ]
|
