While member contributions go a long way to funding all the benefits the ASRS provides, none of what we provide to members would be possible without contributions from our employer partners: ASRS employers contribute the same percentage as ASRS members for each member they employ!
Contributions from both you and your employer are then pooled together, invested, grown, and used to fund benefits such as a lifetime pension when you retire, Long Term Disability, and more.
Employer contributions on your behalf are also a factor when considering Survivor Benefits, or the money that may be available to your beneficiaries should you pass away before being able to retire. In this situation, your beneficiary would receive an amount equal to your career contributions, plus all contributions made on your behalf by your employer, in addition to any applicable interest.
One additional area where employer contributions may come into play is if a member no longer works for an ASRS employer and decides to terminate membership by refunding their account. If your membership date is before July 1, 2011, you may be entitled to a portion of your employer contributions when refunding – it depends on how many years of service you have. Due to a change in statute, those who began contributing members on or after July 1, 2011, are only eligible to receive a portion of employer contributions if there is a reduction in force or layoff by the employer. Otherwise, their refund amount will be based only on their own contributions.
If you’d like to learn more about how the ASRS invests contributions of both you and your employer, visit the Investments section of our website. Contributions from our members and employer partners help keep the ASRS a well-funded and stable retirement plan, which secures your retirement for a lifetime!
