Benefit Contributions
Employer Contributions
Employers are required to contribute to the 1977 Fund an annual amount, currently 21% of base salary, which is payable on a quarterly basis. This amount is determined by the actuarial firm appointed by the PERF Board.
Employee Contributions
You also must contribute during the period of employment or for 32 years, whichever is shorter, an amount equal to 6% of the base salary. This 6% is deducted each pay period from your salary. However, the employer may elect to “pick up” all or part of the employee contribution.
If the employer “picks up” the contributions, the 6% contributions are not taxable to the employee as they are made. This means that the member will have to pay taxes on the “picked up” contributions when retirement benefits are paid to the member. See “Tax Consequences” for more information about taxation of benefits.
