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CalPERS Rates to Change

To: CSU, Chico — State Employees Who Currently Contribute to CalPERS
From: Human Resources service Center - Benefits Unit
Re: 2018/2019 CSU CalPERS Retirement Employee and Employer Contribution Rates

Key Information

  • Employees deemed CalPERS eligible on or after January 1, 2013 will have an increase in their employee contribution rate effective with their July 2018 pay warrant issued August 1.
  • Employer (CSU, Chico) contribution rates will increase as of July 1, 2018

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, 2018. This change will be reflected beginning with their July 2018 payroll warrant with an August 1, 2018 issue date. The new employee contribution rate for members subject to PEPRA has increased to 7.25% from 6.50% for employees in the State Miscellaneous Tier 1 member category only.

The Benefits office has sent targeted communications to current employees that are impacted by this change.

All employer contribution rates will increase, effective July 1, 2018.

Fiscal Year 2018/19 contribution rates are summarized below based on CalPERS Member Categories:

Member Category
CSU Employee Group
Employer Contribution Rate
Classic Member (Prior to 1/1/2013) Contribution Rate
New CalPERS (PEPRA) Member as of 1/1/2013 Contribution Rate

State Miscellaneous - Tier 1

All other CSU Employees 29.396% 5% 7.25%
State Peace Officer/Firefighter MPP Directors and Lieutenants of Public Safety 45.371% 8% 11%
State Safety E99 - Police Officer Intermittent, Non-represented (Class Code 8347) 21.534% 6% 9%
State Peace Officer/Firefighter Unit 8 45.371% 8% 11%

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 2018/2019, 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.

The California Public Employees’ Retirement System (CalPERS) Board of Administration approved the employer contribution retirement rates for fiscal year 2018/2019. The new rates were announced in CalPERS Circular Letter 200-032-18.

Questions

If you have any questions regarding these changes, please contact the Benefits Office (benefits@csuchico.edu or call 530-898-5436).