PERSI Rate Increase
At its December 4, 2012 meeting, the PERSI Retirement Board briefly discussed the contribution rate increase as well as the cost-of-living adjustment (COLA) for retirees and other issues. Currently employers currently pay 10.39% of payroll to PERSI and employees contribute 6.23% of their salary to fund future benefits. With the increase, employees will pay 6.79% and employers will pay 11.23%, effective July 15, 2013.
Many complex factors affect PERSI contribution rates; however, the effect of market volatility than continued in 2009 was the primary reason the increase was proposed. It is worth noting that even with the increase, employee rates remain lower than in 1996.