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FY 25-26 Contribution Rate Announced

Contribution rates have been set for fiscal year 2025-26 – which begins on July 1, 2025. The total contribution rate for FY 2025-26 will be 12.00%, a decrease from the current rate of 12.27%, which continues through June 30, 2025. 

The decrease is due primarily to the continuation of strong investment returns. ASRS total fund returns (net of fees) for the fiscal year ending June 30, 2024 total fund were 9.0%. 

Current and future contribution rates

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, 2024. 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 employer. There are two portions to the ASRS contribution rate: the Pension & Health Insurance Benefit supplement for retired members and the Long Term Disability Income Plan for active members. 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.

A primary goal related to contribution rates, as outlined in the Funding Policy, is to mitigate contribution rate volatility from year to year while keeping the ASRS on a path to a fully funded status.

Minor fluctuations in the rate are expected over the next several years, with a continuing gradual decline over time.

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