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.
- For the annual contribution payment due February 1, 2014, the graded rate is 12.5 percent for ERS and 20.5 percent in PFRS. For the annual contribution payment due February 1, 2015, the graded rate is 13.5 percent for ERS and 21.5 percent in PFRS.
- Graded rates exclude any employer group life insurance owed that fiscal year.