FRS employer contribution rates will change effective July 1, 2012. Employers will now make uniform contributions for both Investment Plan and Pension Plan members. The new uniform contribution rates provide for full funding of Pension Plan normal cost benefits, but do not provide full funding for the unfunded actuarial accrued liability, which will result in a continued overall underfunding of the Pension Plan.
No change was made to the 3% contribution rate paid by employees, the 1.11% Health Insurance Subsidy contribution, or the Investment Plan .03% administrative and educational contribution. Optional Retirement Program employer contribution rates will change effective July 1, 2012. No change was made to the 3% contribution rate paid by employees.
For more information and to view comparison rate charts visit the FRS website.