CalPERS uses contributions of the employer and the employee and income from investments to pay for employee retirement benefits. Employee and the employer contributions are a percentage of applicable employee compensation.

The employer contribution is set annually by CalPERS based on annual actuarial valuations. The employee contribution is 5% of salary for Miscellaneous Tier 1 members and 8% for some Peace Officer/Firefighter members (Public Safety Management and Firefighters only) less an exclusion allowance for coordination with Social Security. For eligible CSU Public Safety (R08) employee Peace Officer/Firefighter members, the CSU currently pays for both the employer and employee contributions.

CSU Employee Group	Employee Contribution	Employer Contribution
		05/06	06/07	07/08*
Benefit Plan: Miscellaneous Tier 1
MPP (M80 Executive (M98 Confidential (C99) Excluded (E99) Physicians (R01) Faculty (R03) CSUEU (R02, 05, 07, 09) Academic Prof.(R04) Skilled Crafts (R06) Skilled Trades (R10) Teaching Associates (R11) Head Start (R12)	5% of monthly salary, less an exclusion allowance of $513 for coordination of Social Security.	15.942%	16.997%	16.633%
Benefit Plan: Peace Officer/Firefighter
Public Safety (R08)	0%	31.563%	32.505%	33.552%
Public Safety MPP (M80) Firefighters (R09)	8% of monthly salary, less an exclusion allowance of $238.	23.563%	24.505%	25.552%

*Retirement rates for fiscal year 2007/08 are effective July 1, 2007.