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Employer Contribution Rate

Oct 13, 2021, 13:16 PM by MOSERS
Could you give an example of the impact this change has?  .... Following an in-depth presentation from our independent external actuary, the MOSERS Board certified the MSEP employer contribution rate for FY23 at 26.33% of payroll beginning July 1, 2022. The employer contribution rate is the percent of pay that a MOSERS-covered employer contributes every pay period to properly fund the retirement plan. The funded ratio of the plan was calculated at 59%. You may ask, "Why is the funded ratio 59%"?

Any change in the employer contribution rate does not impact retiree benefits. As compared to last year, the employer contribution rate certified this year by the MOSERS Board of Trustees represents a higher contribution for one year of service for active members and one year of payment on the plan’s unfunded actuarial accrued liability.

 System funding comes from three sources:

  • investment income,
  • employer contributions, and
  • employee contributions (from those first employed on or after January 1, 2011).

For more information on MOSERS’ Employer Contribution Rate,  please see the Employer Contribution Rate infographic or feel free to contact us if you have further questions. 

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