2026-27 School Employer and Employee Contribution Rates

May 22, 2026
Circular Letter: 200-021-26
Topic: Actuarial

To: All School Employers

Purpose

The purpose of this Circular Letter is to inform you of the following employer and employee pension contribution rates for fiscal year (FY) 2026-27 approved by the California Public Employees’ Retirement System (CalPERS) Board of Administration on April 14, 2026.

Employer Contribution

The employer contribution rate for FY 2026-27 will be 26.40% and is effective with the first payroll period ending in July 2026. This is a decrease of 0.41% from FY 2025-26.

Employee (Member) Contributions

There will be no changes in the member contribution rates for FY 2026-27 for school employees. In accordance with the California Public Employees’ Pension Reform Act (PEPRA), if the total normal cost rate changes by more than 1% of payroll, the member contribution rate must be adjusted to half of the new normal cost rate. For FY 2026-27, the total normal cost rate for PEPRA school members has not changed by more than 1% of payroll since the last member rate adjustment. As a result, the member contribution rate for PEPRA members will remain at 8.00%. The member contribution rate for classic members is set by statute and will remain at 7.00%.

Additional Information

More information can be found on the CalPERS website under the Finance & Administration Committee meeting, Agenda Item 5e (PDF) from April 13, 2026. The complete actuarial valuation report is expected to be available on the CalPERS website later this year.

Questions

If you have questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).

Scott Terando, Chief Actuary
Actuarial Office