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Employer Contribution Rates

Employer contribution rates are established by state law and are determined as a percent of member pay.

Since July 1, 1985, a portion of PERA employer contributions are used to pay part of the health care premiums for benefit recipients enrolled in the PERA health care program. Employer contribution rates shown include the percentage of the contribution that goes into the PERA Health Care Trust Fund.

Effective July 1, 2004, PERA employers contribute 1.02% of salary to the Health Care Trust Fund.  Under Senate Bill (SB) 18-200, member and employer contributions will automatically adjust beginning July 1, 2020, to ensure that PERA is able to pay off its unfunded liability. Both member and employer contribution rates can each increase (or decrease) by up to 0.5% per year, and cannot exceed certain limits also set in law. Read about the automatic adjustment below.

Automatic Adjustment Provisions fact sheet

 Vist the Member Contribution Rates page.

AED and SAED

The Amortization Equalization Disbursement (AED) and Supplemental Amortization Equalization Disbursement (SAED) are additional contributions remitted by employers. The SAED is, to the extent permitted by law, to be funded by moneys otherwise available for employee wage increases. The SAED is not credited to member accounts. 

These additional employer contributions, based on the total payroll of PERA members and employees who can elect either PERA or another plan (regardless of the plan elected), are designed to reduce PERA’s unfunded liability and amortization period.

Defined Contribution Supplement 

Beginning January 1, 2021, and every year after, employer contribution rates in the State and Local Government Divisions will be adjusted to include a defined contribution (DC) supplement. This supplement represents the employer contribution amount paid to PERA DC Plan participant accounts for members who began PERA membership on or after January 1, 2019, that would have otherwise gone to the Defined Benefit (DB) trusts. The DC supplement is deposited into PERA’s DB trusts to pay down the unfunded liability. The amount of the DC supplement is calculated each June by PERA’s actuaries.

Safety Officers

For the purposes of PERA benefits, “Safety Officers” include the following employees:

  • Peace officers with the Colorado State Patrol and Colorado Bureau of Investigation.
  • County sheriffs, undersheriffs, deputy sheriffs, noncertified deputy sheriffs, and detention officers in the Local Government Division whose PERA membership began on or after January 1, 2020. 
  • Corrections officers classified as I through IV in the State Division whose PERA membership began on or after January 1, 2020.
  • Firefighters classified as I through VII employed with the Colorado Division of Fire Prevention and Control, beginning with service earned on or after July 1, 2020.

Note: In state statute, these professionals are defined as “State Troopers.”

A historical overview of contribution rates can be found in the Statistical Section of the Annual Comprehensive Financial Report below.

Annual Comprehensive Financial Report 

 

Employer Contribution Rates
(Effective January 1, 2022)

Employer contribution rates will be changing in July 2022

State Division* 
ContributionRate
Employer base rate10.40%
AED5.00%
SAED5.00%
Auto adjust0.50%
DC Supplement0.10%
TOTAL21.00%

PERA DC Plan participants in the State Division have 10.15% of salary deposited in their account from employer contributions; the remaining employer contributions are deposited in the State Division Trust fund to pay off unfunded liabilities of the DB Plan.

Safety Officers in the State Division* 
ContributionRates
Employer base rate13.10%
AED5.00%
SAED5.00%
Auto adjust0.50%
DC Supplement0.10%
TOTAL23.70%

* Safety Officers in the State Division who participate in the PERA DC Plan have 12.85% of salary deposited in their account from employer contributions; the remaining employer contributions are deposited in the State Division Trust fund to pay off unfunded liabilities of the DB Plan.

School Division 
ContributionRate
Employer base rate10.40%
AED4.50%
SAED5.50%
Auto adjust0.50%
TOTAL20.90%
Local Government Division* 
ContributionRate
Employer base rate10.00%
AED2.20%
SAED1.50%
Auto adjust0.50%
DC Supplement0.03%
TOTAL14.23%

PERA DC Plan participants in the Local Government Division have 10.00% of salary deposited in their account from employer contributions; the remaining employer contributions are deposited in the Local Government Division Trust fund to pay off unfunded liabilities of the DB Plan.

Safety Officers in the Local Government Division* 
ContributionRate
Employer base rate13.10%
AED2.20%
SAED1.50%
Auto adjust0.50%
DC Supplement0.03%
TOTAL17.33%

* Safety Officers in the Local Government Division who participate in the PERA DC Plan have 12.85% of salary deposited in their account from employer contributions; the remaining employer contributions are deposited in the Local Government Division Trust fund to pay off unfunded liabilities of the DB Plan.

Judicial Division (Excluding Denver County Court Judges)* 
ContributionRate
Employer base rate8.91%
AED4.60%
SAED4.60%
Auto adjust0.50%
TOTAL18.61%

* House Bill 20-1394 decreases the employer contribution rate and increases the member contribution rate both by 5% for the Judicial Division for the 2020-21 and 2021-22 State fiscal years. This legislation does not apply to Denver County Court Judges (see below).

Judicial Division (Denver County Court Judges) 
ContributionRate
Employer base rate13.91%
AED4.60%
SAED4.60%
Auto adjust0.50%
TOTAL23.61%
DPS Division* 
Contribution Rate
Employer base rate10.40%
AED4.50%
SAED5.50%
Auto adjust0.50%
TOTAL20.90%

Actual DPS Employer contributions into the DPS Division vary based upon DPS payments toward its pension obligation bonds.