Iowa Public Employees Retirement System, Des Moines, will raise its contribution rate starting in fiscal year 2008, bringing in an estimated $5.2 million more in the first year for the $19.3 billion fund. Gov. Tom Vilsack signed legislation permitting the increase on April 27. The last increase was in 1979.
The rate will gradually increase to 4.5% for employees and to 6.95% for employers in 2011. The 2011 rate will remain in effect until changed by new legislation. The current rate is 3.7% for employees and 5.75% for employers.
Employer contributions totaled $310.8 million in the fiscal year ended June 30, and employee contributions totaled $202.6 million, according to an Iowa PERS report.
The increase does not apply to "sheriffs, deputy sheriffs, police, firefighters, correctional officers and those in other protection occupations, who contribute at rates determined annually by the IPERS' actuary," according to a statement from the system.