Local Governmental Employees' Retirement System Contribution Rates Increasing July 1, 2019

Effective July 1, 2019, the “base” employer contribution rate will change:

  • Law enforcement officers (LEOs) rate will increase from 8.50 to 9.70 percent of reported compensation.
  • Rate for all other employees will increase from 7.75 to 8.95 percent of reported compensation.

Additional rates, such as rates associated with death benefits or past service liabilities, will be added to the base rate to determine the actual contribution percentage for each employer. As in past years, each employer’s total contribution rate for the upcoming fiscal year will be calculated by the Retirement Systems Division and were communicated in a letter in late March.

The LGERS Board of Trustee’s policy now anticipates further increases in the “base” rates effective July 1, 2020, and July 1, 2021, equal to 1.20 percent of reported compensation each year, as follows:

Effective Date Non-LEO "Base Rate" LEO "Base Rate"
July 1, 2019 8.95% 9.70%
July 1, 2020 10.15% 10.90%
July 1, 2021 11.35% 12.10%

Our staff recently gave a presentation to the League of Municipalities.

Here is a link to the audio only.
The slides to follow along with the audio are here.

Retirement Systems Division staff are available to answer any questions from employers about this Board action.