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New Contribution Rates take effect July 1

ASRS active members and employers will see a slight increase in the total contribution rate they pay in the upcoming fiscal year beginning July 1.

The new contribution rate covering both pension and health insurance benefit will be 11.94% each for employees and employers. This is an increase from the current 11.64%.  The new contribution rate for the long term disability program will be 0.17% each for employees and employers. This is an increase from the current 0.16%

ASRS contribution rates, paid equally by members and employers, are actuarially determined and adjusted annually to ensure the plan remains fiscally sound and able to meet current and future obligations.

The new contribution rate takes into account new mortality projections that show ASRS retirees are living longer. Also, the ASRS recently moved from a historical assumed earnings rate of 8 percent to 7.5 percent, reflecting a more conservative economic outlook that is more in line with industry standards and a recommendation from our outside actuary consultant.

To see more, visit ASRS Contribution Rates https://www.azasrs.gov/content/contribution-rates

by David Canella, Communications and Media Relations Manager

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