Published: June 16, 2015
For nearly all groups of employees covered by SCERA the retirement system employee contribution will remain the same or decrease slightly in the next fiscal year. However, for General members of the PEPRA Plan (Plan B), there will be a small fraction of a percent increase.
Each year SCERA has an actuarial valuation of the retirement system. This valuation is a tool to ensure that the system remains on track to be financially sound and viable. Any necessary adjustments to contributions are made as a result of the actuarial analysis. Employee contribution rates are affected by changes in factors such as the anticipated lifespan after retirement, salary assumptions, or the investment earnings assumption.
Each fiscal year the employer contributions and employee contributions are adjusted as appropriate.
For fiscal year 2015-16 there will be no changes in employee contributions for members of the Legacy Plan (Plan A), whether they are Safety members or General Members.
Safety members in the PEPRA Plan (Plan B) will experience a slight decrease in contributions, regardless of their employer.
General members in the PEPRA Plan (Plan B) will see a slight increase in their employee contribution - .14% of compensation or about $2 a paycheck on compensation of $40,000/year.
On the whole, employee contribution rates are very stable. And the retirement system remains on good financial footing.