Uses of Revenue
2009/10 Employer-Paid Retirement Adjustment
The CalPERS defined benefit pension plan is funded by employer-paid contributions, employee contributions, and the plan’s investment earnings. Employer-paid contribution rates are adjusted each year in order to meet defined pension benefit obligations. In Fiscal Year 2009/10 the employer retirement rates for the Miscellaneous Tier 1 increased after declining for previous two years. The 2009/10 employer-paid retirement adjustment is equivalent to an increase of $7.45 million. The state Department of Finance processes state agency retirement adjustments during the fiscal year. The following table provides CalPERS employer-paid retirement contribution rates and adjustments from 2000/01 through 2009/10:
CalPERS Employer-Paid Retirement Rates
| Fiscal Year |
Miscellaneous Tier 1 |
Peace Officer/ Firefighter |
CSU Employer- Paid Retirement Adjustments (General Fund only) |
|---|---|---|---|
| 2000/01 | 0.000% | 2.729% | ($26,297,000) |
| 2001/02 | 4.166% | 9.638% | $84,244,945 |
| 2002/03 | 7.413% | 13.925% | $68,074,445 |
| 2003/04 | 14.843% | 20.325% | $155,112,444 |
| 2004/05 | 17.022% | 23.841% | $44,418,397 |
| 2005/06 | 15.942% | 23.563% | ($22,490,000) |
| 2006/07 | 16.997% | 24.505% | $23,284,000 |
| 2007/08 | 16.633% | 25.552% | ($8,587,000) |
| 2008/09 | 16.574% | 26.064% | ($1,350,000) |
| 2009/10 | 16.917% | 25.848% | 7,446,000 |
California Government Code Section 20814 requires the state to include in the annual budget funding to support the employer-paid retirement contribution rates established by the actuary, and requires the legislature to adopt the rates and authorize the appropriation in the Budget Act.
For reference regarding 2009/10 employer-paid retirement rates, see CSU Human Resources Administration, Technical Letter HR/Benefits 2009-03.
