Contribution Rates
TRSL defined benefit plan
TRSL's defined benefit plan is funded through member contributions, employer contributions, and investment earnings of the retirement system. Members contribute a percentage of salary and employers contribute a percentage of payroll toward funding retirement benefits. The employer contribution to TRSL is made up of four parts: (1) the normal cost, which is the cost of funding benefits that all active employees will earn that year, (2) the admin expense rate, which is the retirement system administrative expenses to be funded annually through the employer contribution rate rather than amortized over 30 years, (3) the account funding contribution (AFC) rate, which is a funding mechanism to directly pay for future benefit increases (PBIs), and (4) that year’s payments for the unfunded accrued liability (UAL). Historically, the normal cost has ranged between three and seven percent. Payments for the UAL are determined by statute and designed to pay off the liability within no more than 30 years from the time it occurred.
To view historical rates for TRSL's Defined Benefit Plan, click the link below:
TRSL Defined Benefit Plan Contribution Rates from 1936-Present
Optional Retirement Plan (ORP)
An ORP account is owned by the participant, who contributes 8.0% of salary (less a 0.05% TRSL administrative fee). Prior to FY 2014-15, employers contributed the equivalent of the defined benefit normal cost, which changes annually (see above). Beginning in FY 2014-15, higher education boards were authorized to set the contribution amount, which could not be less than the equivalent of the defined benefit normal cost. Effective for FY 2018-19 and thereafter, the employer contribution cannot be less than 6.2%. These contributions—the net employee contribution of 7.95% plus the "transfer amount" of the employer contribution—are transferred to the ORP carrier selected by the employee.
To view historical ORP contribution rates from FY 1990-91 to FY 2013-14, click the link below:
ORP Contribution Rates from FY 1990-91 to FY 2013-14
TRSL defined benefit plan
TRSL's defined benefit plan is funded through member contributions, employer contributions, and investment earnings of the retirement system. Members contribute a percentage of salary and employers contribute a percentage of payroll toward funding retirement benefits. The employer contribution to TRSL is made up of four parts: (1) the normal cost, which is the cost of funding benefits that all active employees will earn that year, (2) the admin expense rate, which is the retirement system administrative expenses to be funded annually through the employer contribution rate rather than amortized over 30 years, (3) the account funding contribution (AFC) rate, which is a funding mechanism to directly pay for future benefit increases (PBIs), and (4) that year’s payments for the unfunded accrued liability (UAL). Historically, the normal cost has ranged between three and seven percent. Payments for the UAL are determined by statute and designed to pay off the liability within no more than 30 years from the time it occurred.
To view historical rates for TRSL's Defined Benefit Plan, click the link below:
TRSL Defined Benefit Plan Contribution Rates from 1936-Present
Optional Retirement Plan (ORP)
An ORP account is owned by the participant, who contributes 8.0% of salary (less a 0.05% TRSL administrative fee). Prior to FY 2014-15, employers contributed the equivalent of the defined benefit normal cost, which changes annually (see above). Beginning in FY 2014-15, higher education boards were authorized to set the contribution amount, which could not be less than the equivalent of the defined benefit normal cost. Effective for FY 2018-19 and thereafter, the employer contribution cannot be less than 6.2%. These contributions—the net employee contribution of 7.95% plus the "transfer amount" of the employer contribution—are transferred to the ORP carrier selected by the employee.
| ORP Contribution Rates | |
|---|---|
| Higher Education (includes laboratory schools) | Non-Higher Education |
| FY 2024-25 FY 2023-24 FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18 FY 2016-17 FY 2015-16 FY 2014-15 |
Contribution rates from FY 2014-15 to Present |
ORP Contribution Rates from FY 1990-91 to FY 2013-14