Tier 1, 2 and 3 Members
If you are a Tier 1 or 2 member, or a Tier 3 member covered by Article 11 benefits, you are not required to contribute toward your retirement benefits, but may elect to make voluntary annuity savings contributions to the Retirement System. These contributions, plus the interest they earn, will provide you with an annuity, in addition to your regular service retirement benefits, when you retire.
Tier 5 Members
If you are a Tier 5 member, you are required to contribute 3 percent of your reportable earnings toward your retirement benefits until you retire or have 32 years of service credit, whichever occurs first. These mandatory contributions are not annuity savings contributions and will not provide you with an annuity when you retire.
There will be some exceptions. For example, PFRS members covered by a collective bargaining agreement requiring the employer to offer a non-contributory plan that was in effect on January 9, 2010, and is still in effect on the date of membership, may not contribute.
Tier 6 Members
As a Tier 6 member, you are required to contribute 3 percent of your reportable earnings toward your retirement benefits during fiscal year 2012-13. Beginning April 1, 2013, you are required to contribute a specific percentage of your annual salary, as shown below, until you retire or have 32 years of service credit, whichever occurs first. These mandatory contributions are not annuity savings contributions and will not provide you with an annuity when you retire.
| Annual Wage | Contribution Rate |
|---|---|
| $45,000 or less | 3% |
| $45,000.01 to $55,000 | 3.5% |
| $55,000.01 to $75,000 | 4.5% |
| $75,000.01 to $100,000 | 5.75% |
| More than $100,000 | 6% |
There will be some exceptions. For example, PFRS members covered by a collective bargaining agreement requiring the employer to offer a non-contributory plan that was in effect on January 9, 2010, and is still in effect on the date of membership, may not contribute.