Your employer makes contributions each month to the Pension Plan trust fund based on a percent of your salary and your FRS membership class, according to the following table.
| Employment Class |
July 1, 2009 Rate |
| Regular |
8.69% |
| Special Risk |
19.76% |
| Special Risk Administrative Support |
11.39% |
| Elected Officers: |
| Legislators |
13.32% |
| Governor, Lt. Governor, Cabinet Officers |
13.32% |
| State Attorney, Public Defenders |
13.32% |
| Justices, Judges |
18.40% |
| County Elected Officers |
15.37% |
| Senior Management Service |
11.96% |
| DROP participants |
9.80% |
It's important to note that the employer's contribution rate does not affect your retirement benefit. Your retirement benefit is set by a formula that does not include the contribution rate paid by your employer. Also, these contribution rates are lower than the long-term cost of funding your benefit because of stronger-than-expected investment gains in the late 1990s.
Employee contributions aren't required or allowed, except to purchase certain types of additional service. Employee contributions were previously required if you were an employee of a state agency, district school board, or community college prior to January 1, 1975, or if you were an employee of a county government, city, or special district prior to October 1, 1975. These employee contributions have been deposited in the FRS trust fund, along with any contributions you may have paid for a leave of absence or other type of service for which you may have paid contributions.
All these contributions go into a single trust fund to pay benefits for all FRS Pension Plan participants.
Contribution percentage amounts are subject to change each year based on legislative law changes, investment experience and the actuarial experience of the trust fund. However, the rise and fall of the contribution percentages does not affect your accrued retirement benefit, which is guaranteed by law.
Your employer also contributes additional amounts each month to fund the Health Insurance Subsidy benefit (1.11%) and plan education expenses (0.05%).
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Your employer makes contributions each month based on a percentage of your gross salary and your FRS membership class. The contribution (blended rate) percentage paid by your employer is the same whether you participate in the Pension Plan or the Investment Plan. These rates are shown under the Pension Plan column.
After your employer pays the contribution percentage shown under the Pension Plan column, an amount represented by the contribution rates shown below will be made to your Investment Plan account. The difference between the rates for the Pension Plan and the Investment Plan will be paid from the over $5 billion surplus currently in the Pension Plan.
| Employment Class |
Contribution Rate in effect since
July 1, 2002 |
| Regular |
9.0% |
| Special Risk |
20.0% |
| Special Risk Administrative Support |
11.35% |
| Elected Officers: |
| Legislators |
13.40% |
| Governor, Lt. Governor, Cabinet Officers |
13.40% |
| State Attorney, Public Defenders |
13.40% |
| Justices, Judges |
18.90% |
| County Elected Officers |
16.20% |
| Senior Management Service |
10.95% |
These contributions go into your FRS Investment Plan account. These contribution rates do affect your benefit as they are the primary funding for your account balance, particularly earlier in your career. The longer you're in the Investment Plan the more important investment earnings become, relative to contributions.
Employee contributions are not permitted.
Contribution rates are fixed by law and can be changed by a future act of the Legislature.
Your employer also contributes additional amounts each month to fund the Health Insurance Subsidy benefit (1.11%), the Investment Plan disability program (contribution varies depending on membership class from 0.25% to 1.33%), and plan administration and educational expenses (0.05%).
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