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Contribution rates set for next fiscal year

At its December 4 meeting, the ASRS Board of Trustees accepted valuations for the various ASRS program plans and approved new contribution rates for the Defined Benefit Plan for fiscal year 2016-17, which take effect July 1, 2016.

Despite a down year of market returns, the total contribution rate for the defined benefit plan, health insurance supplement and long term disability plan will be 11.48 percent for both employer and employee, up just slightly from the current rate of 11.47 percent.

“We are pleased the rate has remained relatively stable,” ASRS Director Paul Matson said, noting that the overall funded status of the ASRS plan increased from 76.87 percent to 77.53 percent from last fiscal year.

It was also determined that there are no excess funds for an additional Permanent Benefit Increase to retired members for the next fiscal year.

As outlined in state statute, increases can only be provided when there are excess returns. Given the market performance over the past 10-year period that the ASRS uses to recognize gains and losses over time, there are no excess earnings for an additional PBI at this time.

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