Pension Contribution Rate Reductions Effective July 1
Last year, the State Actuary and the Director of the Department of Retirement Systems (DRS) recommended rate reductions for both the PERS and LEOFF pension systems, to be effective September 1, 1999. In a bit of a surprise move, the effective date has been moved up to July 1. You should be receiving formal notification soon from the Director of DRS.
The effective date was changed to July 1 in the 1999-2000 operating budget, signed by the Governor on May 14. The rates are slightly higher than those reported late last year, due to the earlier effective date. The following chart summarizes the changes:
|
Current Member Rate |
New Member Rate |
Current Employer Rate |
New Employer Rate |
|
|
PERS Plan 1 |
Fixed in Statute at 6% |
Fixed in Statute at 6% |
7.32%** |
4.41%** |
|
PERS Plan 2 |
4.65% |
1.85% |
7.32%** |
4.41%** |
|
LEOFF Plan 1 |
Fixed in Statute at 6% |
Fixed in Statute at 6% |
Fixed in Statute at 6%** |
Fixed in Statute at 6%** |
|
LEOFF Plan 2 |
8.48% |
5.87% |
5.09%** |
3.52%** |
** An administrative expense fee, currently set at .18 percent, is added to all employer contribution rates. That fee will increase to .19 percent for PERS contributions and .21 percent for LEOFF contributions, effective July 1, 1999. The rates shown here do not include the fee.
More information is available on the Department of Retirement Systems Web site.