CalPERS Rates Changes

To:

CSU, Chico

From:

Human Resources Service Center - Benefits Unit

Re:

2016/2017 CSU CalPERS Retirement Employee and Employer Contribution Rates

Key Information

  • Only employees deemed CalPERS eligible on or after January 1, 2013 will have an increase in their employee contribution rate effective with their July 2016 pay warrant issued August 1.
  • All employer (CSU, Chico) contribution rates will change as of July 1, 2016.

Who Is Impacted?

Only employees deemed new members by CalPERS on or after January 1, 2013 are subject to PEPRA* and will have an increase to their CalPERS employee retirement contribution rate effective July 1, 2016. This change will be reflected on their July 2016 payroll warrant with an August 1, 2016 issue date. The new employee contribution rate for members subject to PEPRA has increased to 6.75% from 6.00% for employees in the State Miscellaneous Tier 1 member category only.

The Benefits office will be sending targeted communications to current employees that are impacted by this change.

All employer contributions rates will be changing effective July 1, 2016. CalPERS maintains an Employer Contribution Rate History document that can be referenced here.

The 2016/2017 CSU retirement contribution rates for employers and employees covered by the

CalPERS Member Categories are summarized below:

Member
Category

CSU Employee Group

Employer
Contribution
Rate for
FY 2016/17

Member Contribution Rate
for FY 2016/17

Classic Member
(Prior to 1/1/2013)

New CalPERS
(PEPRA*) Member
as of 1/1/2013

State Miscellaneous
- Tier 1

All other
CSU Employees

26.728%

5%

6.75%

State Peace
Officer/Firefighter

MPP Directors and
Lieutenants of Public Safety

41.923%

8%

11.0%

State Safety

E99 – Police Officer
Intermittent, Non-represented
(Class Code 8347)

19.935%

6%

9%

State Peace
Officer/Firefighter

Unit 8

41.923%

8%

11.0%

More Information

*As a result of Assembly Bill 340, also known as the “Public Employees’ Reform Act of 2013” (PEPRA), employees deemed new members by CalPERS on or after January 1, 2013, are required to contribute at least 50% of the total annual normal cost of their pension benefit as determined by the CalPERS’ actuary. Further, the provision states that when the normal cost has changed by more than 1% of payroll, the members’ contribution rate must be adjusted to ensure the member pays half the normal cost. For fiscal year 2016/2017, the normal cost for PEPRA members has changed by more than 1% of payroll. As a consequence, the PEPRA member’s contribution rate has been increased by .75%.

The California Public Employees’ Retirement System (CalPERS) Board of Administration approved the employer contribution retirement rates for fiscal year 2016/2017. The new rates were announced in CalPERS Circular Letter 200-022-16.

Questions

If you have any questions regarding these changes, please contact the Benefits office (benefits@csuchico.edu or call 898-5436).