Contribution Rates Unchanged for 2012-2013 School Year
At the October 24, 2011 Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) Board of Trustees’ meeting, the Board voted to maintain PSRS and PEERS contribution rates at current levels for the 2012-2013 school year.
The contribution rate for PSRS members and employers will remain at a combined total of 29%, with Missouri’s educators paying 14.5% and employers matching at 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 matching at 6.86%.
This decision was made possible by the Board’s adoption of a Funding Stabilization Policy at the August, 2011 Board meeting. This policy helps stabilize contribution rates for members and employers, while continuing to maintain the financial health of the Systems. It is based, in part, on strong investment returns over the last two fiscal years, updated actuarial assumptions as a result of a recent Five-Year Experience Study, and the decision to provide more consistent, 2% annual cost-of-living adjustments to eligible retirees in most years.
“One of the goals of the Funding Stabilization Policy was to provide our members and school districts some relief from rising contribution rates while simultaneously improving the financial condition of PSRS and PEERS,” said Steve Yoakum, PSRS/PEERS Executive Director. “We are pleased that the Board was able to hold contribution rates steady this school year, and we hope to continue this trend in the future."