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

The 2015-2016 school year contribution rates for Public School and Education Employee Retirement System of Missouri (PSRS/PEERS) members and employers will remain unchanged for the 2015-2016 school year. These rates have been in effect since July 1, 2011.

2015-2016 PSRS Contribution Rates
Employee Rate Employer Rate Total Combined Rate
14.5% 14.5% 29%
2015-2016 PEERS Contribution Rates
Employee Rate Employer Rate Total Combined Rate
6.86% 6.86% 13.72%

At the October 27, 2014 PSRS/PEERS Board of Trustees' meeting, the Board voted to once again maintain the current contribution rates for the 2015-2016 school year. This action was based on the recommendation of the Systems' actuary, PricewaterhouseCoopers.

The ability to continue to hold the contribution rates at the same level is due to the positive investment returns over the last few years, and also the Board's adoption of the Funding Stabilization Policy in 2011. This policy was designed to help maintain stable contribution rates and retiree cost-of-living adjustments, while keeping the Systems' pre-funded status strong.

"The Board is pleased to be able to hold the member and employer contribution rates steady for another school year," said Dr. Aaron Zalis, chairman of the PSRS/PEERS Board of Trustees. "The PSRS/PEERS Investment team has done an outstanding job averaging a 13.1% return over the last five years. Those returns combined with the Board's Funding Stabilization Policy have allowed contribution rates to remain level once again."

According to PricewaterhouseCoopers, the overall pre-funded status has increased to 82.8% for PSRS and 85.1% for PEERS, both of which are considered financially healthy.

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 2015.

Eligible PSRS service and disability retirees may receive cost-of-living adjustments (COLAs) on monthly benefits beginning the second January following their retirement date. Eligible PEERS service and disability retirees may receive COLAs on monthly benefits beginning the fourth January following their retirement date. Qualified beneficiaries may also receive COLAs.

PSRS/PEERS proudly partners with Missouri's public school districts and our members to provide retirement security to more than 248,000 members and their families.

News Archive »