Contributions By Members
Withholding Of Regular Compensation
- How much do members contribute?
- 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 of their regular compensation.
- Those employees whose membership began on or after January 1, 1984 but prior to July 1, 1996 must contribute 8 percent of their regular compensation.
- Those employees whose membership commenced on or after July 1, 1996 must contribute 9 percent of their regular compensation.
- 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, 2001 and who choose to participate in the program must also contribute 11 percent. Teachers who had an opportunity and did choose not to participate in the enhanced benefit program will contribute at a rate of 5, 7, 8 or 9 percent, depending upon the date of their entry into service.
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?
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. (Teachers participating in the “Retirement Plus” program are not subject to this additional withholding.) 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.
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, biweekly, or monthly basis (as determined by your pay period).
|Date published:||July 1, 2015|