In 2014 Members of the Statewide Defined Benefit Plan (SWDB) voted in favor of increasing the member contribution rate. The increase of .5% per year began in 2015; the new member rate will be fully implemented in 2022 at 12%.
The primary purposes of the added funding are to:
Click here for a handout of the data found on this page.
1. What plans will this new Member contribution rate apply to?
It applies to the following:
It does NOT apply to the:
2. Does this change impact the Employer contribution rate to the plan?
No, the change only applies to the Member contribution rate. The legislation enacted in 2010 permitted members to vote on increasing the member contribution rate. The legislation specifically states that “The increase in the member contribution rate shall not be subject to negotiation for payment by the employer.” An increase in the employer contribution could be considered through additional legislation.
3. Does this rate apply to all Members enrolled in the SWDB Plan, regardless how they voted?
Yes. This change applies to all current and future Members of the SWDB Plan.
4. When was the new rate effective and how is it applied?
The first Member contribution rate increase went into effect January 1, 2015. The contribution rate increase is phased in over eight years. The actual rates may be found below for the SWDB-Plan, the SWDB-SS Plan and the SWDB Reentry Group.
5. Does the salary used in calculating the member contribution rate change?
Member contributions will continue to be calculated on a Member's pensionable earnings (base salary).
6. What is the new Member contribution rate for the SWDB Plan?
7. What is the new Member contribution rate for the SWDB Reentry Group?
Reentry members* have an additional rate that was negotiated locally and provided to FPPA by resolution when departments reentered the SWDB Plan. The combined member and employer rate for members of this group was set at 20% prior to this change. The election impacted this group too; the additional ½% per year in the contribution rate is in addition to the Member rate that was negotiated locally at the time of reentry.
*Reentry rates apply only to those members of a reentry department who were active in the plan at the time the reentry took place and who elected to participate in the Statewide Defined Benefit Plan. If you have questions on who this change applies to, please contact the FPPA Contribution Specialist assigned to your account.
Annually prepared list of employers with SWDB Reentry Members. (This link will take you to Chapter 2 of the Employer Guide. The SWDB Reentry employers are on page 4.)
8. What is the Member contribution rate to the SWDB-SS Plan?
Annually prepared list of employers with SWDB-SS Reentry Members. (This link will take you to Chapter 2 of the Employer Guide. The SWDB-SS Reentry employers are on page 7.)
9. Do members participating in the Deferred Retirement Option Plan (DROP) contribute at these rates?
Yes. Members in the DROP program will also remit at the rates - based on the applicable plan chart above.
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