Subject: DRS Email 13-012, Employer Contribution Rate Changes for...

  • Notice No.: 13-012
  • Date: May 31, 2013
  • Applies to: PERS, LEOFF and PSERS Employers
  • Subject: DRS Email 13-012, Employer Contribution Rate Changes for PERS, PSERS, and LEOFF

NEW EMPLOYER PENSION CONTRIBUTION RATES

DRS is sending you this bulletin to provide notice of pending contribution rate changes in the pension systems noted above. These changes were adopted earlier this year by the Pension Funding Council and the LEOFF Plan 2 Board.

Per standard practice, these rates are scheduled to begin on July 1 (the beginning of the new fiscal year). DRS is required to give rate payers 30 days’ notice of pending rate changes.

Please note, however, that there is an important qualification to this notice: The Legislature, which is currently meeting in a special session, has the authority to modify previously adopted contribution rates.

While we do not anticipate any legislative changes to the rates adopted by the Pension Funding Council and the LEOFF Plan 2 Board, we cannot predict what the Legislature will do. We’ve therefore decided to provide you with this 30-day advance notice of scheduled rate changes, with the caveat that they are subject to modification by the Legislature.

If there are any legislative changes to the rates, we will notify you as soon as possible after the Legislature adjourns.

The new contribution rates are presented in the charts below. Only those systems and plans that have a change in their rates are listed. Please note the rates for SERS and TRS will change effective September 1 and will be provided under a separate notice in late July.

ADMINISTRATIVE RATE CHANGE COMING

Effective September 1, 2013, the administrative rate will be increasing from .16 to .18 (please see DRS Email 13-005 for details). Consequently, the employer rates for PERS, PSERS and LEOFF will be changing again. A DRS notice will be sent in late July reflecting this change.

Contribution Rates Effective July 1, 2013
(Employer rates include 0.16% DRS administrative expense rate)
  Plan 1 Plan 2
Public Employees’ Retirement System (PERS) Percent Rate Percent Rate
Member Contribution Rate 6.00% 0.0600 4.92% 0.0492
Employer Contribution Rate 9.19% 0.0919 9.19%* 0.0919*
PERS State Government Elected Officials Percent Rate Percent Rate
Member Contribution Rate 7.50% 0.750 4.92% 0.0492
Employer Contribution Rate 13.71% 0.1371 9.19%* 0.0919*
PERS JBM State Agencies – Supreme Court Justices, Appeals and Superior Court Judges Percent Rate Percent Rate
Member Contribution Rate 9.76% 0.0976 9.80% 0.0980
Employer Contribution Rate 11.69% 0.1169 11.69%* 0.1169*
PERS JBM Counties & Cities – District Court Judges & Municipal Court Judges Percent Rate Percent Rate
Member Contribution Rate 12.26% 0.1226 12.30% 0.1230
Employer Contribution Rate 9.19% 0.0919 9.19%* 0.0919*
Public Safety Employees’ Retirement System (PSERS) Percent Rate Percent Rate
Members Contribution Rate NA NA 6.36% 0.0636
Employer Contribution Rate NA NA 10.52% 0.1052
Law Enforcement Officers’ and Fire Fighters Retirement System (LEOFF) Percent Rate Percent Rate
Cities, Counties, and Fire Districts, etc. Percent Rate Percent Rate
Member Contribution Rate 0.00% 0.000 8.41% 0.0841
Employer Contribution Rate 0.16% 0.0016 5.21% 0.0521
State Contribution Rate 0.00% 0.000 3.36% 0.0336
Ports and Universities Percent Rate Percent Rate
Member Contribution Rate NA NA 8.41% 0.0841
Employer Contribution Rate NA NA 8.57% 0.0857

*Employer rates for Plan 3 are the same as for Plan 2.

Should you have questions, please reply to this notice or call Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2.

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