On July 1, the ASRS will begin a new fiscal year – FY 2024-25.
Starting July 1, 2024, the new total contribution rate will be 12.27%, a slight decrease from fiscal year 2024 of 12.29%.
Understanding Your Contribution Rate
The total contribution rate paid by both ASRS members and employers is actually comprised of three parts: contributions collected to fund the retirement pension benefit, health insurance benefit supplement, and Long Term Disability. The percentages of these three parts combine to equal your total contribution rate. The Pension and Health Insurance Benefit contributions are collected as pre-tax dollars, while the Long Term Disability Income Plan contributions are collected as post-tax dollars.
For FY 2024-25, the Pension and Health Insurance contribution rate is 12.12%, while the Long Term Disability Income Plan contribution rate stays at 0.15%. Below are the contribution rates for fiscal year 2024-25, effective July 1, 2024, through June 30, 2025.
The Alternate Contribution Rate (ACR) is an employer-only contribution, which is required when a retiree returns to work for an ASRS employer and elects not to suspend their pension. The ACR applies to all ASRS retirees who return to work for an ASRS employer regardless of early or normal retirement status or the number of hours worked in a pay period. The employer is the entity required by statute to remit the ACR payment. ASRS rule states that the ACR amount is not deducted from the employee’s compensation and the Employer shall directly remit payment of an ACR to the ASRS from the Employer’s funds.
by Brianna Hamlin, Employer Relations
