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Contributions

Contributions are made conveniently through payroll deduction, and your employer also makes contributions on your behalf. By working together, our goal is to help you achieve sufficient income in retirement.


You make pretax contributions to the pension fund based on the following rates:

Range of Compensation
(school fiscal year earnings)
Contribution Rate
$0 - $5,000 3% (up to $150 total)
$5,000.01 - $15,000 3.6% (up to $510 total)
$15,000.01 and over 6.4%

Your employer contributes an actuarially determined amount.

 

 

If you have the Personal Healthcare Fund
Starting your first day on the job, you automatically began contributing 4 percent of your paycheck to your retirement investment account, which is made up of your Personal Healthcare Fund and your retirement savings. This automatic enrollment earns you your full employer match.

The Power of the Match

Consider Mary and Mark:
They are both 25 years old and make a salary of $30,000 per year. They both contribute 2 percent of their pay to their retirement investment account each month. However, only Mary's employer provides a matching contribution of 50 percent of her contribution (up to 1 percent of her salary), so a total of 3 percent of her gross wages automatically goes into her account. Mark's employer does not provide this benefit. Look at the difference in their account values at age 60.

In this case, the employer match is worth over $34,340 in retirement account value.

 

For every dollar you contribute, up to 2 percent of your wages, you will receive an equal matching contribution to your account from your employer. This is directed to your Personal Healthcare Fund. (Go to Retiree Healthcare for more information about the Personal Healthcare Fund.) For the next 2 percent of your wages that you contribute, your employer’s matching contribution will be half of what you contributed, up to 1 percent of your wages. This, plus any additional contributions you make, is directed to your retirement savings.

Your contributions to your retirement investment account are invested in a 457 plan, and your employer’s contributions are invested in a 401(k) plan.

With matching, your automatic enrollment contribution plus the employer match means a total of 7 percent of your pay is being invested in your Savings Component. You should consider increasing your contributions if you can; saving as much as you can as long as you can will help ensure a financially secure retirement.


If you have the Premium Subsidy

Starting your first day on the job, you automatically began contributing 2 percent of your paycheck to your retirement investment account. This automatic enrollment earns you your full employer match.

For the first 2 percent of your wages that you contribute, your employer’s matching contribution will be half of what you contributed, up to 1 percent of your wages.

Your contributions to your retirement investment account are invested in a 457 plan, and your employer’s contributions are invested in a 401(k) plan.

With matching, your automatic enrollment contribution plus the employer match means a total of 3 percent of your pay is being invested in your Savings Component. You should consider increasing your contributions if you can; saving as much as you can as long as you can will help ensure a financially secure retirement.

 

Vesting

You are vested when you have sufficient years of service to qualify for a future benefit (such as pensions and investment account balances that are based on employer contributions) even if you terminate employment.


You are vested when you have at least 10 years of service.


Your contributions to your retirement investment account and any earnings on those contributions are always yours, regardless of your years of service. You become 50 percent vested in your employer’s contributions after 2 years of service, 75 percent vested after 3 years of service, and 100 percent vested after 4 years of service.

 

 

 
 
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