Contribution Rates to Remain at Current Levels for Fourth Consecutive School Year

At the October 28, 2013 Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) Board of Trustees' meeting, the Board voted to maintain the current contribution rates for both PSRS and PEERS members for the 2014-2015 school year. This action was based on the recommendation of the Systems' actuary, PricewaterhouseCoopers. The ability to hold the contribution rates at the same level is primarily due to the Board's adoption of the Funding Stabilization Policy in 2011.

The contribution rate for PSRS members and employers will remain at a combined total of 29%, with PSRS members paying 14.5% and employers paying 14.5%. For PEERS members and employers, the rate will remain at a combined total of 13.72%, with PEERS members paying 6.86% and employers paying 6.86%. These rates have been in effect since July 1, 2011.

"The Funding Stabilization Policy was adopted, in part, to maintain contribution rate stability for our employers and our members," said Dr. Aaron Zalis, chairman of the PSRS/PEERS Board of Trustees. "The actuary's recommendation to keep rates stable demonstrates the effectiveness of the policy."

According to PricewaterhouseCoopers, both PSRS and PEERS remain over 80% pre-funded and are considered to be financially stable.

As part of the Funding Stabilization Policy, the Board also recently approved a 2% cost-of-living adjustment (COLA) for all eligible benefit recipients effective January 2014.

PSRS/PEERS proudly partners with Missouri's public school districts and our members to provide retirement security to almost 242,000 active and retired public education employees and their families.