CERS Contribution Rates Set for Fiscal Year 2019-20
Today the Kentucky Retirement Systems (KRS) Board voted unanimously to approve CERS contribution rates for fiscal year 2019-20. Those rates will be 24.06 percent for nonhazardous and 39.58 percent for hazardous and will go into effect July 1, 2019.
The new contribution rates represent a 12 percent increase over current fiscal year rates, which was expected. Currently, the contribution rates are 21.48 percent for nonhazardous and 35.34 percent for hazardous.
HB 362, which was championed by KACo and passed during the 2018 legislative session, caps CERS employer contribution rate increases at 12 percent per year over the prior fiscal year until June 30, 2028. Without the cap placed on rate increases by HB 362, the new contribution rates would have been much higher.
That means that for a nonhazardous county employee making $25,000 per year, the amount the county must contribute on behalf of that employee to CERS will increase by $645 annually on July 1, 2019 – from $5,370 to $6,015.