Your contribution rate as a member of SERS depends upon your Class of Service. Most members have a contribution rate of 6.25 percent. However, if you are a member of either the new A-3 or A-4 Class, you may be required to pay a Shared Risk Contribution in addition to your member contribution in the future. The amount of the Shared Risk Contribution depends on the actual investment rate of return earned by the SERS Fund. If the actual rate of return is below the assumed rate of return set by the SERS actuary and Board, a Shared Risk Contribution will be required. The Shared Risk Contribution rate will not exceed an additional 2 percent of your earnings.
Your employer deducts your retirement contributions from your earnings each payday, and SERS credits them to your account, which is identified by your Social Security number. SERS credits your contributions with 4 percent Statutory Interest compounded annually. The sum of your contributions plus credited Statutory Interest is called your Accumulated Deductions.
Each year you are an Active or inactive SERS member, Multiple Service member or Vestee, you will receive a Statement of Account from SERS listing your Accumulated Deductions. You should review the annual statement for accuracy. Keep your annual statements with your other SERS membership records because they may be useful in calculating your federal income taxes when you retire or leave State service.