The Public Employees Retirement System has released individual employer estimates for 2025-27 pension costs.
The estimates are based on the value of PERS’ investments at the end of 2022. PERS investments lost 1.55% in 2022. Actual rates for 2025-27 will depend on PERS’ financial standing at the end of 2023, but as of September, the PERS fund was performing below annual break-even needs.
In the September report, school districts’ average base rate was projected to increase 1.57 percentage points to 27.5% in the next biennium. But individual school districts will have wildly different experiences, depending on the age of their staff, pay increases and side accounts. The net rate, which includes the value of side accounts that have fallen in value, is projected to increase 3.92 percentage points to 19.08%.
The final fund valuation that determines the 2025-27 rates will be released in the summer.
