Tier 2 and 3 (Article 11) Members
You don’t need to contribute toward your retirement. However, you can make voluntary annuity savings contributions, which will earn interest and provide an annuity above and beyond your regular pension benefit when you retire.
Tier 5 Members
You must contribute 3 percent of your reportable earnings until you retire, unless your plan limits creditable service to 20, 25 or 32 years.* In that case, you won’t contribute after the maximum service credit allowed has been reached. These are mandatory contributions; they will not provide an annuity when you retire.
Tier 6 Members
You must contribute a percentage of your reportable earnings (see chart below) until you retire, unless your plan limits creditable service to 20, 25 or 32 years.* In that case, you won’t contribute after the maximum service credit allowed has been reached.
For your first three years of membership, we use the annual wage provided to us by your employer (on your membership application) to determine your contribution rate. After three years, we base your contribution rate on what you actually earned in the last completed State fiscal year (April 1 to March 31). Part-time employees contribute based on annualized wages. Contribution rates are set April 1 each year. These are mandatory contributions; they will not provide an annuity when you retire.
|Annual Wage||Contribution Rate|
|$45,000 or less||3.00%|
|$45,000.01 to $55,000||3.50%|
|$55,000.01 to $75,000||4.50%|
|$75,000.01 to $100,000||5.75%|
|More than $100,000||6.00%|
*There may be some exceptions. For example, PFRS members covered by a collective bargaining agreement requiring the employer to offer a non-contributory plan, that was in effect on January 9, 2010, and was still in effect on the date of employment, may not need to contribute.