2024-25 State Employer Contribution Rates
June 28, 2024
Circular Letter: 200-033-24
Topic: Actuarial
To: State Employers, Agricultural Districts, and State Colleges and Universities
Purpose
The purpose of this Circular Letter is to provide supplemental information to the previously published Circular Letter 200-020-24 dated May 9, 2024, regarding 2024-25 employer contribution rates. This supplemental information reflects the provisions of the recently adopted Budget Act.
Employer Contributions
The employer contribution rates are effective with the first payroll period that ends in July 2024 and are in effect for fiscal year (FY) 2024-25. Actuarially required employer contribution rates for FY 2024-25 are shown in the table below and are unchanged from the previous Circular Letter:
| Member Category | Actuarial Required Employer Contribution as a Percentage of Compensation for FY 2024-25 |
|---|---|
| State Miscellaneous | 31.39% |
| State Industrial | 20.18% |
| State Safety | 22.03% |
| State Peace Officers & Firefighters | 48.09% |
| California Highway Patrol | 69.89% |
The Budget Act calls for the application of the July 2023 supplemental pension payment toward the FY 2024-25 actuarially required contribution. Therefore, an adjusted set of “net” employer contribution rates for FY 2024-25 have been determined and are provided below.
Employer contribution rates will continue to vary annually. Pursuant to Government (Gov.) Code section 20683.2(d) of the Public Employees’ Retirement Law, the California State Legislature may adopt higher contribution rates than what is actuarially required to redirect savings resulting from increases in member contribution rates for various state members that became effective July 1, 2013, and July 1, 2014. The Legislature adopted the rate increases pursuant to Gov. Code section 20683.2(d) for FY 2024-25 as they have in prior years.
Rates that include the additional contributions are shown in the table below:
| Member Category | Actuarially Required Employer Contribution for FY 2024-25 | Contribution Reduction due to July 2023 Supplemental Pension Payment | Additional Employer Contribution Rate | Budget Act Total Net Contribution Rate for FY 2024-25 |
|---|---|---|---|---|
| State Miscellaneous | 31.39% | -5.18% | +0.10% | 26.31% |
| State Industrial | 20.18% | -5.54% | +0.88% | 15.52% |
| State Safety | 22.03% | -4.29% | +1.18% | 18.92% |
| State Peace Officers/Firefighters | 48.09% | -19.02% | +1.65% | 30.72% |
| California Highway Patrol | 69.89% | 0.00% | +1.32% | 71.21% |
Additional Information
More information can be found on the CalPERS website in the Finance & Administration Committee meeting, agenda item 5e (PDF) on April 15, 2024. The complete actuarial valuation report is expected to be available on the CalPERS website later this year.
Questions
If you have questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).
Scott Terando, Chief Actuary
Actuarial Office