Contribution Stabilization Program
- 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. Future graded rates are capped at an annual increase or decrease of 1 percent of total salaries.
- Graded rates exclude any employer group life insurance owed that fiscal year.
|Fiscal Year||System Average Actuarial Rate||Original Contribution Program Graded Rate|
|Employees’ Retirement System|
|Police and Fire Retirement System|