A formula that is very important at the ASRS, but one that most of us would not learn about outside of retirement fund management:
C + I = B + E
Contributions plus Income equals Benefits plus Expenses. This is the essence of how your retirement system is funded! A description of these four factors:
“Contributions” refer to the deductions that you and your employer equally pay. These contributions are collected with every payroll and then invested by the ASRS.
The ASRS Service Purchase Program is a benefit that allows active members with previous qualifying service to purchase past service time. There are 5 types of qualifying service, with the most common being the purchase of Forfeited Service or the purchase of Other Public Service. While it can be costly, it can also be beneficial - potentially increasing your lifetime benefit and/or allow you to retire earlier than you planned.
On July 1, the ASRS will begin a new fiscal year – FY 2021-22. For members, this is always when your new contribution rates will go into effect. For the fiscal year starting July 1, the new total contribution rate (which includes pension benefits, health insurance benefits, and long term disability benefits) will be 12.41%, adjusted slightly from the current rate of 12.22%.
