Among the most significant employee retirement benefit duties of a SERS-participating employer is withholding employee contributions and budgeting for employer contributions, and forwarding both of them to SERS.
While the most often referenced employee rate is one that applies to the majority of SERS members and the most often referenced employer rate is a composite of all then-current rates, there are specific employee and employer rates for each class of service in the system as detailed in the following charts:
FY 2026/27 Employee & Employer Rate Chart by Class of Service
FY 2025/26 Employee & Employer Rate Chart by Class of Service
FY 2024/25 Employee & Employer Rate Chart by Class of Service
FY 2023/24 Employee & Employer Rate Chart by Class of Service
FY 2022/23 Employee & Employer Rate Chart by Class of Service
FY 2021/22 Employee & Employer Rate Chart by Class of Service
FY 2020/21 Employee & Employer Rate Chart by Class of Service
FY 2019/20 Employee & Employer Rate Chart by Class of Service
Employee contribution rates are set by the State Employees' Retirement Code and are largely determined by the employee’s class of service.
The rates are generally fixed with the notable exception of the shared-risk/shared-gain provisions that apply to most employees who entered SERS membership since 1/1/2011 (in the A-3, A-4, A-5, and A-6 classes of service and specific members who chose to opt into the straight Defined Contribution Plan when it first opened to participants). If SERS’ investments perform more than 1% above or below the assumed rate of return over several years, the employee rate could increase or decrease as follows:
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For most employees who entered SERS membership between 1/1/11 and 12/31/18 and most employees who entered hazardous duty law enforcement or security positions after 12/31/18 (A-3 and A-4 classes of service), the rate may change by 0.5% over a period and by no more than 2% overall. |
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For most employees who entered SERS membership on or after 1/1/19 (A-5 and A-6 classes of service), the rate may change by 0.75% over a period and by no more than 3% overall. |
The review is a two-step process:
By law, 2026 was a shared-risk/shared-gain review year. SERS Fund investments performed more than 1% above the assumed rate of return during the review periods. As a result, most SERS members hired since 1/1/2011 will contribute less toward their retirement benefit beginning 7/01/2026. The lower contribution rates will be in effect for at least three years, when the shared-risk/shared gain calculation will be conducted in 2029. At that point, the rates could increase, decrease, or remain unchanged depending on SERS Fund investment performance.
Employer Contribution Rates
The SERS Board certifies the employer contribution rates each year, typically in April, to become effective the following fiscal year beginning in July.
It is customary for rates to result from an independent actuarial valuation of the pension system. The valuation assesses the pension system's current funds and determines its future expected liabilities. The employer contribution rate is set so that it can fund all retirement benefits earned by employees working during the year and pay toward any unfunded liability that may exist.
In some years, however, the actuarially calculated employer contribution rate has been changed by Pennsylvania law.