Contribution rates

Employer contributions are due on amounts considered earnable compensation for both active members and return-to-work retirees. Employer contributions are not required on active employees who are exempt and elect to not join one of the retirement systems administered by PEBA by completing a non-membership election within 30 days of the employee’s date of hire.

Employers are required to pay all applicable employer contributions, including the retiree insurance surcharge, and incidental death benefit and accidental death program coverage contributions, if coverage is provided. State law mandates that PEBA collect the retiree insurance surcharge from employers. These contributions are needed to cover the employer’s share of the cost of providing health and dental insurance to retirees under the State Health Plan.

Member contributions

Retirement planMember contribution rate
State ORP9%

FY 2025 employer contributions (July 1, 2024-June 30, 2025)

Retirement planEmployer retirement contributionIncidental death benefit contribution1Accidental death contribution1Total employer rateInsurance surcharge2
State ORP318.41%0.15%N/A18.56%6.35%

1Rates are applicable only to employers covered under these programs.
2Insurance surcharge is applicable only to state agencies, public higher education institutions, public school districts, charter schools that participate in retirement and other entities that participate in the state’s retiree health insurance trust fund.
3For State ORP participants, 5% of the employer contribution is remitted directly to the participant's State ORP service provider. State ORP is available only to employees of state agencies, public higher education institutions, public school districts and charter schools that participate in retirement.