|AMEA CalPERS contribution update|
Dear AMEA member,
Effective June 22, 2012, the employee portion of the CalPERS retirement will increase by .534% from 2.269% to 2.803%. Per the MOU, employees pay (via payroll deduction) 42.6% of any CalPERS employer costs in excess of 15.063%. This change will occur as a result of the City’s CalPERS employer rate for fiscal year 2012/13 going up from 16.551% of PERS reportable compensation to 21.642%. The calculation for the employee’s contribution is as follows:
(2010/2011 Employer Rate – 15.063) x Employee Cost Share = Payroll Deduction
(16.551%-15.063%) x .426 = 2.269%
EFFECTIVE JUNE 22, 2012
(2012/2013 Employer Rate – 15.063) x Employee Cost Share = Payroll Deduction
(21.642%-15.063%) x .426 = 2.803%
2.269%-2.803% = .534% (INCREASE)
Changes to the PERS rates will be effective as of the pay period beginning June 22, 2012, with the first payroll deduction reflected on the pay check dated July 13, 2012.
As usual, we will keep you informed of any and all updates and information.