How much do members contribute to the Retirement System?
How much do members contribute to the retirement system? The amount each employee is required to contribute to the retirement system is set by statute. If you began employment on or after July 1, 1996, you must contribute nine percent of your regular compensation to the retirement system. If you were hired any time between January 1, 1984 and July 1, 1996 your contribution rate is set at eight percent. Members who joined the system any time between 1975 and 1983 contribute seven percent. Those employees who became members prior to 1975 are contributing five percent. The law also mandates that for members whose employment commenced on or after January 1, 1979, an additional two percent will be withheld on regular compensation over $30,000. This two percent is in addition to the seven, eight or nine percent that is already being deducted from total regular compensation.
The amount each employee is required to contribute to the retirement system each year is set by statute. If you began employment on or after July 1, 1996, you must contribute nine percent of your regular compensation to the Retirement System. If you were hired any time between January 1, 1984 and July 1, 1996 your contribution rate is set at eight percent. Members who joined the system any time between 1975 and 1983 contribute seven percent. Those employees who became members prior to 1975 are contributing five percent. The law also mandates that for members whose employment commenced on or after January 1, 1979, an additional two percent of regular compensation will be withheld on compensation over $30,000. This two percent is in addition to the seven, eight, or nine percent that is already being deducted from total regular compensation.
The amount you contribute to the System each year is set by statute, and it is determined by your date of membership in the System. The following will outline the contribution rates based on the current statute: Date of Entry into the System Percentage Before January 1, 1975 5% January 1, 1975 December 31, 1983 7% January 1, 1984 June 30, 1996 8% After June 30, 1996 9% In addition to the above percentages, a member who first enters the system on or after January 1, 1979 must contribute an additional 2% of his/her salary in excess of $30,000. This 2% is in addition to the seven, eight or nine percent that is already being deducted from total regular compensation.
