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Values represent the percentage of the member’s covered wages. For example, a regular employee with an annual wage of $30,000 contributes $1,230 during the year ($30,000 X .041= $1,230) or $102.50 each month. The employer contributes $158.75 each month for a total of $1,905 for the year. Future Contribution Rates for Regular Members Only The contribution rates for regular members will increase by one-half percentage point each year until July 1, 2010. The following chart shows future contribution rates through June 30, 2011. Beginning July 1, 2011, IPERS will set regular member contribution rates using an annual actuarial valuation, which is a snapshot of IPERS’ finances.
Future Contribution Rates for Special Service Members IPERS’ actuary completes an annual valuation and certifies the contribution rates each year for sheriffs, deputy sheriffs, and members in other protection occupations. The new rates will be posted here as soon as IPERS has received and verified them. Contribution Rate History View a table that displays a history of contribution rate changes, categorized by member type. Calendar Year Wage Ceiling The IRS sets a limit on the amount of wages that can be covered by IPERS. Wages above this ceiling are not subject to IPERS withholding, and employers do not include them on IPERS reports. For calendar year 2008 the wage ceiling is $230,000. Wages paid to employees over $230,000 in 2008 are not covered by IPERS. If an employee has more than one employer and exceeds the wage ceiling before July 2008 because of dual employment, IPERS will adjust the wages accordingly and notify the employers of the overpayment. For the employer monthly reporting periods of July 2008 and later, wages for members with multiple employers will no longer be prorated. Instead, IPERS will accept all wages until a member has reached the IRS limit. IPERS will notify employers who report wages over the limit and return any excess contributions to the employers. |
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