PERS Employer Rate Estimated to Increase to 12.2 Percent

The CalPERS employer rate is estimated to be 12.2 percent for fiscal year 2004-05. Uncertainty about the increase in the PERS rate had been circulating for some time. We were hearing estimates from 12.2 percent to 20 percent. However, CalPERS staff has confirmed that the rate currently being proposed is based on the most recent financial and actuarial data available. If the 12.2 percent rate is officially adopted by the CalPERS Board, it will be an increase from the current 10.4 percent rate. Earlier this year, CalPERS staff was estimating that the rate for 2004-05 would be 18 percent.

Although any increase in the PERS rate is a significant non-reimbursed cost to local community college districts, 12.2 percent is certainly better than 18 percent.