2026-27 State Employer and Employee Contribution Rates
May 22, 2026
Circular Letter: 200-022-26
Topic: Actuarial
To: State Employers, Agricultural Districts, and State Colleges and Universities
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 Contributions
The employer contribution rates are effective with the first payroll period that ends in July 2026 and are in effect for FY 2026-27. The table provides employer contribution rates for FY 2026-27:
| Member Category | Actuarially Required Employer Contribution as a Percentage of Compensation for FY 2026-27 |
|---|---|
| State Miscellaneous | 31.60% |
| State Industrial | 20.40% |
| State Safety | 21.60% |
| State Peace Officers & Firefighters | 49.00% |
| California Highway Patrol | 63.81% |
Employer contribution rates will continue to vary annually. Pursuant to Government (Gov.) Code section 20683.2(d) of the Public Employees’ Retirement Law, the California State Legislature may adopt higher contribution rates than shown in the table above to redirect savings resulting from increases in member contribution rates for various state members. This law became effective on July 1, 2013 and July 1, 2014. The Legislature adopted the increased rates for FY 2025-26, and it is anticipated that the Legislature will also adopt the increased rates for FY 2026-27.
The table displays the rates, including the additional contributions:
| Member Category | Actuarially Required Employer Contribution for FY 2026-27 | Additional Employer Contribution Rate | Budget Act Total Contribution Rate for FY 2026-27 |
|---|---|---|---|
| State Miscellaneous | 31.60% | 0.10% | 31.70% |
| State Industrial | 20.40% | 0.88% | 21.28% |
| State Safety | 21.60% | 1.18% | 22.78% |
| State Peace Officers & Firefighters | 49.00% | 1.65% | 50.65% |
| California Highway Patrol | 63.81% | 1.32% | 65.13% |
Public Employees’ Pension Reform Act (PEPRA) Employee (Member) Contributions
PEPRA members are required to contribute at least 50% of the total annual normal cost of their pension benefit. As per Gov. Code section 7522.30, state employees are excluded from this requirement except for employees of the Legislature, California State University (CSU), and the judicial branch. PEPRA includes a provision requiring that if the total normal cost changes by more than 1% of payroll, the member contribution rate must be adjusted to half of the new normal cost rate.
The tables shows how member contribution rates are determined, based on 50% of the total normal cost rate for each respective plan.
Basis for Current Rate
| Member Category | Total Normal Cost | Actuarial Valuation Date | Member Rate |
|---|---|---|---|
| State Miscellaneous – CSU, Legislature and Judicial | 16.21% | 6/30/2021 | 8.00% |
| State Safety – CSU, Legislature and Judicial | 20.97% | 6/30/2021 | 10.50% |
| State Peace Officers and Firefighters – CSU, Legislature and Judicial | 26.44% | 6/30/2021 | 13.25% |
Rates Effective July 1, 2026
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous – CSU, Legislature and Judicial | 16.79% | 0.58% | No | 8.00% |
| State Safety – CSU, Legislature and Judicial | 21.02% | 0.05% | No | 10.50% |
| State Peace Officers and Firefighters – CSU, Legislature and Judicial | 27.43% | 0.99% | No | 13.25% |
Member Contribution Rates for State Bargaining Units (BU) 2, 5, 12, 16, and 18
Pursuant to Gov. Code section 20683 pertaining to each of the above-mentioned Bargaining Units, members of state Bargaining Units 2, 5, 12, 16, and 18 are required to contribute at least 50% of the total annual normal cost of their pension benefit. The total normal cost is remeasured annually as part of the actuarial valuation. If the total normal cost of the category changes by more than 1% from the total normal cost determined as of the basis valuation date, the new member rate shall be 50% of the new normal cost rounded to the nearest quarter percent, not less than the current member contribution rate. Subsequently, if the total normal cost of the category changes by more than 1% from the basis at that time, the new member rate shall be 50% of the new normal cost rounded to the nearest quarter percent. Provisions vary by bargaining units.
The tables shows how member contribution rates are determined, based on 50% of the total normal cost for each respective plan.
Basis for Current Rate
| Member Category | Total Normal Cost | Actuarial Valuation Date | Member Rate |
|---|---|---|---|
| State Miscellaneous | 17.71% | 6/30/2021 | 8.50% |
| State Industrial | 19.00% | 6/30/2021 | 9.00% |
| State Safety | 23.69% | 6/30/2021 | 11.50% |
Rates Effective July 1, 2026
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous | 18.08% | 0.37% | No | 8.50% |
| State Industrial | 18.60% | -0.40% | No | 9.00% |
| State Safety | 23.27% | -0.42% | No | 11.50% |
Note: The member rate listed applies to State Miscellaneous and Industrial members who participate in Social Security. If there are any members of these groups who do not participate in Social Security, the member rate is currently 1% higher than the rate shown.
Basis for Current Rate
| Member Category | Total Normal Cost | Actuarial Valuation Date | Member Rate |
|---|---|---|---|
| State Miscellaneous | 17.71% | 6/30/2021 | 8.75% |
| California Highway Patrol | 31.46% | 6/30/2024 | 14.50% |
Rates Effective July 1, 2026
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous | 18.08% | 0.37% | No | 8.75% |
| California Highway Patrol | 31.33% | -0.13% | No | 14.50% |
Note: The member rate listed applies to State Miscellaneous and Industrial members who participate in Social Security. If there are any members of these groups who do not participate in Social Security, the member rate is currently 1% higher than the rate shown.
Basis for Current Rate
| Member Category | Total Normal Cost | Actuarial Valuation Date | Member Rate |
|---|---|---|---|
| State Miscellaneous | 17.41% | 6/30/2024 | 9.00% |
| State Industrial | 18.57% | 6/30/2024 | 9.50% |
| State Safety | 23.06% | 6/30/2024 | 11.00% |
Rates Effective July 1, 2026
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous | 18.08% | 0.67% | No | 9.00% |
| State Industrial | 18.60% | 0.03% | No | 9.50% |
| State Safety | 23.27% | 0.21% | No | 11.00% |
Note: The member rate listed applies to State Miscellaneous and Industrial members who participate in Social Security. If there are any members of these groups who do not participate in Social Security, the member rate is currently 1% higher than the rate shown.
Basis for Current Rate
| Member Category | Total Normal Cost | Actuarial Valuation Date | Member Rate |
|---|---|---|---|
| State Miscellaneous | 17.41% | 6/30/2024 | 9.00% |
| State Industrial | 18.57% | 6/30/2024 | 9.50% |
| State Safety | 23.06% | 6/30/2024 | 11.50% |
Rates Effective July 1, 2026
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous | 18.08% | 0.67% | No | 9.00% |
| State Industrial | 18.60% | 0.03% | No | 9.50% |
| State Safety | 23.27% | 0.21% | No | 11.50% |
Note: The member rate listed applies to State Miscellaneous and Industrial members who participate in Social Security. If there are any members of these groups who do not participate in Social Security, the member rate is currently 1% higher than the rate shown.
Basis for Current Rate
| Member Category | Total Normal Cost | Actuarial Valuation Date | Member Rate |
|---|---|---|---|
| State Miscellaneous | 15.48% | 6/30/2015 | 10.00% |
| State Industrial | 18.02% | 6/30/2015 | 10.00% |
| State Safety | 22.91% | 6/30/2020 | 11.50% |
Rates Effective July 1, 2026
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous | 18.08% | 2.60% | No | 10.00% |
| State Industrial | 18.60% | 0.58% | No | 10.00% |
| State Safety | 23.27% | 0.36% | No | 11.50% |
Notes
- The member rate listed applies to State Miscellaneous and Industrial members who participate in Social Security. If there are any members of these groups who do not participate in Social Security, the member rate is currently 1% higher than the rate shown.
- Member contribution rates for Bargaining Unit 18 will remain unchanged because half of the normal cost is lower than the current member rates.
Additional Information
More information can be found on the CalPERS website under the Finance & Administration Committee meeting, agenda item 5d (PDF) from April 13, 2026. The complete actuarial valuation report is expected to be available on the CalPERS website later this summer.
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