This PML is superseded by the HR Manual and is no longer active.
PML Number
2014-015
Title
Employee Retirement Contribution Rate Increase effective July 1, 2014
Date Issued
June 20, 2014
Owner
Benefits and Training Division
Contact
Desi Rodrigues
Retirement Program Manager
(916) 324-9400
desi.rodrigues@calhr.ca.gov
Signed By
Darlene Schell, Chief of Benefits and Training Division
Content
The employee retirement contribution rates will increase for certain state employees pursuant to the Public Employees’ Pension Reform Act of 2013 and CalPERS law.  The information below provides the required employee retirement contribution increases for excluded, exempt, and represented employees by retirement category.
•	Second Tier Members (miscellaneous/industrial) – rate increases by 1.5 annually as determined by CalPERS actuaries.  The employee contribution increases from 1.5 percent to 3 percent.
•	PO/FF Members under Bargaining Unit 6 and related excluded and exempt employees – rate increases by 1 percent from 12 percent to 13 percent.
•	Safety Members under Bargaining Units 1, 3, 4, 7, 9, 10, 11, 14, 15, 17, 20, 21 and related Excluded and Exempt employees – rate increases by 1 percent from 10 percent to 11 percent.
•	Safety Members – excluded and exempt employees related to Bargaining Units 12, 13, 16, 18, and 19 – rate increases by 1 percent from 10 percent to 11 percent.
•	PO/FF Members under Bargaining Unit 7 and related excluded and exempt employees – rate increases by 1.5 percent from 11.5 percent to 13 percent.
•	PO/FF Members under Bargaining Unit 8 and related excluded and exempt employees – rate increases by 1.5 percent from 11.5 percent to13 percent.
Payroll Process 
Departmental personnel offices are not required to take any action.  The State Controller’s Office (SCO) will process a mass update to capture the employee retirement contribution changes.  SCO will also issue a pay letter that will provide additional information.
If an employee transfers from one position to another position, the retirement contribution may be different depending on the retirement category or bargaining unit.  Personnel staff can verify the accurate retirement contribution by reviewing the bargaining unit contracts located on the CalHR website at www.calhr.ca.gov.
Questions related to state employee retirement contribution changes should be directed to CalHR as provided in this memorandum.  If you have questions related to CalPERS membership eligibility and benefit information, please contact CalPERS at (888) 225-7377 or visit the CalPERS website at www.calpers.ca.gov.