|
Contributions
by Members
|
 |
|
WITHHOLDING
OF REGULAR COMPENSATION
|
|
|
|
How much do members contribute?
- Contribution Rates
• Employees who became members
prior to January 1, 1975 must contribute 5
percent of their regular compensation.
• Employees whose membership
commenced on or after January 1, 1975 but
prior to January 1, 1984 must contribute 7
percent.
• Those employees whose membership
began on or after January 1, 1984 but prior
to July 1, 1996 must contribute 8 percent.
• Those employees whose membership
commenced on or after July 1, 1996 must contribute
9 percent.
• Those employees who are
appointed to the state police and whose membership
commenced on or after July 1, 1996 must contribute
12 percent.
• Teachers who were hired
on or after July 1, 2001 must contribute 11
percent because of their required participation
in an enhanced benefit program. Teachers who
were members prior to July 1, 2001 and who
choose to participate in the program must
also contribute 11 percent.
|
| |
| |
|
REGULAR
COMPENSATION IN EXCESS OF $30,000
|
|
|
|
Could my contributions
be affected by when my membership
service began and by the amount
of my regular compensation?
- Contribution
Rate
If your membership began on or
after January 1, 1979 and if your
annual rate of regular compensation
is $30,000 or more, the treasurer
of the governmental unit for which
you work will withhold two percent
of that portion of your rate of
regular compensation which is
in excess of $30,000. This two
percent withholding is in addition
to the 7, 8, 9, or 12 percent
that is already being deducted
from your total regular compensation.
This additional withholding will
be made each pay period from that
amount of your compensation that
is in excess of an annual rate
of $30,000 even before your total
compensation for the year exceeds
$30,000.
- Example
For example, if you became a member
in 1981 and your rate of regular
compensation is $40,000:
• Deductions
in the amount of 7% of $40,000
equaling $2,800 will be taken;
and
• deductions
in the amount of 2% of $10,000
($40,000 minus $30,000) equaling
$200 will also be taken.
• Your annual
contributions will be $3,000,
which will be taken from your
rate of regular compensation on
a weekly or monthly basis (as
determined by your pay period).
|
|
|
|
|
|
|
