Factors Affecting an Employer’s Annual Payment
- Number of Employees who are MembersMembership in the Retirement System continues to grow. From March 31, 2002 to March 31, 2011, the total number of active members rose from 637,896 to 672,723. The higher the number of members on an employer’s payroll, the higher the employer’s annual payment.
- Higher SalariesHigher salaries often increase an employer’s total bill. Since employer rates are billed as a percentage of salary, the more your employees earn each pay period, the more your contribution to the System increases.
- Retirement Plans and Options OfferedEmployers can choose to offer improved retirement plans or optional benefits (i.e. one-year final average salary for police officers and/or firefighters) to its employees. The greater the benefits offered, the greater the employer’s annual contribution. For example, if an employer chooses to provide a special plan for a specific employee group such as police officers or firefighters, the cost will be greater than a regular plan. A special plan allows for retirement after completing a specific number of years of credited service in specific job titles rather than attaining a certain age.
