Contribution Rates

Overview

Contribution Rates

Funds to pay CCCERA benefits are derived from member and employer contributions as well as investment earnings on those contributions. Contribution rates change every year on July 1. The contributions are made up of two components:

Normal Cost

The normal cost is the annual contribution rate that, if paid annually from a member’s first year of membership through the year of retirement, would accumulate to the amount necessary to fully fund the member’s retirement-related benefits. Accumulation includes annual crediting of interest at the assumed investment earning rate.

The normal cost is included in the calculation of the member and employer rates. The member contribution rate is determined in accordance with the appropriate statute, and the remainder of the normal cost is included in the employer contribution rate.

If the normal cost were contributed every year, and all actuarial assumptions were met, the retirement plan would always be 100 percent funded. 

Contribution to the Unfunded Actuarial Accrued Liability

To the extent the normal cost contributions have not accumulated to the amount necessary to fully fund the retirement benefits that have already been granted, there exists an Unfunded Actuarial Accrued Liability (UAAL). The UAAL is a debt owed to CCCERA for benefits that CCCERA is obliged to pay, and is only paid by the employer..

The UAAL contribution is made up of interest and principal. The interest portion is simply interest on the UAAL at the actuarial assumed rate of return. This is interest that CCCERA would be expected to earn if the plan were 100 percent funded. The principal portion of the UAAL contribution is determined in accordance with the Board’s Actuarial Funding Policy.

Note: Once CCCERA determines the member and employer contribution rates, the employer may require the member to pay all or part of the employer contribution rate (Gov. Code Section 31631), and for legacy members (General Tiers 1 and 3, and Safety Tier A and C) the employer may pay a portion of the member contribution rate (Gov. Code Section 31581.1).

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Member Contribution Rate Calculator

Your member contribution rate is determined by your tier, your employer, and for legacy members, your age at entry into the system. By entering your information in below, the calculator can determine your member contribution rate. 

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Contribution Rates Effective July 1, 2025 to June 30, 2026

At its September 11, 2024 meeting, the Retirement Board reviewed the actuary’s valuation report for the year ending December 31, 2023, and accepted the recommended employer and member contribution rates, which will become effective on July 1, 2025. 

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Contribution Rates Effective July 1, 2024 to June 30, 2025

At its August 9, 2023 meeting, the Retirement Board reviewed the actuary’s valuation report for the year ending December 31, 2022, and accepted the recommended employer and member contribution rates, which will become effective on July 1, 2024.