Contribution rates have been set for fiscal year 2026-27, which begins on July 1, 2026. The total contribution rate for FY 2026-27 will be 11.98%, a decrease from the current rate of 12.00%, which continues through June 30, 2026.
| FISCAL YEAR | PENSION & HEALTH INSURANCE BENEFIT | LONG TERM DISABILITY INCOME PLAN | TOTAL |
|---|---|---|---|
| FY 2025-26 (Current Rate) | 11.86% | 0.14% | 12.00% |
| FY 2026-27 (Effective July 2026) | 11.87% | 0.11% | 11.98% |
At the end of each fiscal year - June 30 - a valuation of the ASRS benefit plans is undertaken by an outside actuarial firm. Guided by the ASRS Funding Policy, the valuation and the recommended contribution rate for the new fiscal year are presented to the ASRS Board of Trustees for adoption, which took place on November 20, 2025. You can view notes and the live stream for this meeting on our Board and Committee Meetings page, where we post information on all our meetings that are open to the public.
Contribution rates are paid equally by ASRS active members and their employers. There are two portions to the ASRS contribution rate: the Pension & Health Insurance Benefit supplement contribution rate, which pays for retirement benefits, and the Long Term Disability contribution rate, which pays for long-term disability claims. The Pension Plan contribution is a pre-tax deduction, and the Long-Term Disability deduction is post-tax. Tax on pension benefits is deferred until payment is made to the member as a benefit or refund.
Our primary goal related to contribution rates is a steady overall decline for the foreseeable future, avoiding large year-to-year fluctuations, and keeping the ASRS on a path to a single-digit contribution rate.
