# Contribution Stabilization Program

First, the Retirement System’s Actuary determines the System average and graded rates.

For fiscal year end 2022:

• The average rate is 16.2 percent for ERS (including 0.4 percent GTLI) and 28.3 percent for PFRS (including 0.0 percent GTLI).
• The graded rate is 15.1 percent for ERS and 25.4 percent for PFRS.

For fiscal year end 2023:

• The average rate is 11.6 percent for ERS (including 0.2 percent GTLI) and 27.0 percent for PFRS (including 0.0 percent GTLI).
• The graded rate is 14.1 percent for ERS and 26.4 percent for PFRS.

Then, the Actuary:

1. Determines the employer’s normal contribution
Subtracts the value of Group Term Life Insurance (GTLI) from employer’s invoiced contribution (not including payments for deficiency, previous amortizations, incentive costs or prior years’ adjustments).

2. Determines the employer’s average rate
Divides the normal contribution by the billable salary.

3. Determines the employer’s graded rate
Multiplies the System graded rate by the ratio of the employer’s average rate divided by the System average rate (not to exceed the System graded rate).

4. Determines the employer’s graded contribution
Multiplies the employer’s billable salary by the employer’s graded rate.

5. Determines the maximum amortization amount
Subtracts the employer’s graded contribution from the employer’s normal contribution.

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