Contribution Stabilization Program
- For fiscal year 2013, the ERS graded rate is 11.5 percent of total salaries; the PFRS graded rate is 19.5 percent. Future graded rates will be capped at an annual increase or decrease of 1 percent of total salaries.
- The increase or decrease in graded rates depends on the gap between the System’s average rate and the previous graded rate:
- If the gap is 1 percent or more, then the graded rate will increase/decrease by 1 percent in the direction of the System’s average rate.
- If the gap is less than 1 percent, then the graded rate will be set to the System’s average rate.
- The increase/decrease in the graded rates began with contributions due for fiscal year 2011. Since the gap between the System’s average rate and 2013 graded rate is greater than 1 percent, the graded rates for fiscal year 2013 are 11.5 percent for ERS and 19.5 percent for PFRS.
- Graded rates exclude any employer group life insurance owed that fiscal year.