Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Rates topic
No spam. Unsubscribe anytime.
District warns PERS rate changes could add roughly $2.5 million to next-year costs
Summary
Finance staff said employer PERS contribution rates are due to increase substantially on July 1, 2025, and that, based on current staffing and wages, the district estimates the rate change could add about $2.5 million in expenditures.
Finance staff briefed the board on a pending uptick in employer PERS contribution rates that will take effect July 1, 2025. Staff explained how employer rates are calculated (expected benefits, the unfunded actuarial liability, and side-account rate relief) and said the district has historically used PERS side accounts and bonds to reduce employer rates.
Staff presented tabled figures showing employer contribution rates for tier 1/tier 2 moving from 6.34% (2023–25) to an estimated 15.83% on 07/01/2025; OPS-ERT employer rates also increase sharply. Based on current staffing and pay levels, staff estimated the change could add about $2,500,000 in district expenditures for the full year. "If I ran this based on this year's staffing levels and this year's wages, that will add $2,500,000 in expenditures," the presenter said.
Board members discussed side-account prepayments the district made in prior years and how those payments have provided rate relief; staff said the district's side accounts reduced earlier increases but that rapid payroll growth has strained those savings, resulting in a sharper correction this cycle.
The board and staff said they will continue exploring budget adjustments and will discuss priorities with the finance committee as next year's budget is developed.
