TRS 2022-23 contribution rate will be highest in four years

On Board Online • August 8, 2022

By Paul Heiser
Senior Research Analyst

School districts will see an increase in their contribution rates toward the Teachers' Retirement System (TRS) for the 2022-23 school year.

The TRS board formally adopted an employer contribution rate of 10.29% at its August meeting, the same rate that TRS had estimated in January. The rate is up from 9.80% for 2021-22. Payments associated with the 2022-23 rate will be collected in the fall of 2023. The 2021-22 rate is applied to the 2021-22 TRS member payroll and will be collected this fall.

The employer contribution rate is the percentage of member payroll employers contribute to the retirement system. This rate is determined annually through an actuarial valuation of the plan's assets and liabilities. School districts have their payments automatically deducted from state aid apportioned during September, October and November of each year.

Despite the rise in the ECR, it will have no impact on pension exemptions related to tax levy limits. The exemption applies only to rate increases that are greater than two percentage points.

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