2025-26 State Employer and Employee Contribution Rates
June 6, 2025
Circular Letter: 200-025-25
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) 2025-26 approved by the CalPERS Board of Administration on April 15, 2025.
Employer Contributions
The employer contribution rates are effective with the first payroll period that ends in July 2025 and are in effect for FY 2025-26. The table provides employer contribution rates for FY 2025-26:
| Member Category | Actuarial Required Employer Contribution as a Percentage of Compensation for FY 2025-26 |
|---|---|
| State Miscellaneous | 31.32% |
| State Industrial | 20.54% |
| State Safety | 21.67% |
| State Peace Officers & Firefighters | 49.36% |
| California Highway Patrol | 69.29% |
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 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 2024-25, and it is anticipated that the Legislature will also adopt the increased rates for FY 2025-26.
The table displays the rates, including the additional contributions:
| Member Category | Actuarially Determined Employer Contribution for FY 2025-26 | Additional Employer Contribution Rate | Budget Act Total Contribution Rate for FY 2025-26 |
|---|---|---|---|
| State Miscellaneous | 31.32% | 0.10% | 31.42% |
| State Industrial | 20.54% | 0.88% | 21.42% |
| State Safety | 21.67% | 1.18% | 22.85% |
| State Peace Officers & Firefighters | 49.36% | 1.65% | 51.01% |
| California Highway Patrol | 69.29% | 1.32% | 70.61% |
PEPRA Employee (Member) Contributions
Public Employees’ Pension Reform Act (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.
These tables show 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 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneous - CSU, Legislature and Judicial | 6/30/21 | 16.21% | 8.00% |
| Safety – CSU, Legislature and Judicial | 6/30/21 | 20.97% | 10.50% |
| POFF – CSU, Legislature and Judicial | 6/30/21 | 26.44% | 13.25% |
Rates Effective July 1, 2025
| Member Category | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous - CSU, Legislature and Judicial | 16.34% | 0.13% | No | 8.00% |
| Safety – CSU, Legislature and Judicial | 20.99% | 0.02% | No | 10.50% |
| POFF – CSU, Legislature and Judicial | 26.64% | 0.20% | No | 13.25% |
Member Contribution Rates for State Bargaining Units 2, 5, & 18
Pursuant to Gov. Code section 20683 pertaining to each of the above-mentioned Bargaining Units, members of state Bargaining Units 2, 5, 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.
These tables show how member contribution rates are determined, based on 50% of the total normal cost for each respective plan.
Basis for Current Rate
Bargaining Unit 2
| Bargaining Unit 2 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneous1a | 6/30/21 | 17.71% | 8.50% |
| State Industrial1b | 6/30/21 | 19.00% | 9.00% |
| State Safety | 6/30/21 | 23.69% | 11.50% |
Bargaining Unit 5
| Bargaining Unit 5 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneous1c | 6/30/21 | 17.71% | 8.75% |
| California Highway Patrol | 6/30/21 | 32.88% | 13.50% |
Bargaining Unit 18
| Bargaining Unit 18 | Basis Valuation Date | Total Normal Cost | Member Rate |
|---|---|---|---|
| State Miscellaneous1d | 6/30/15 | 15.48% | 10.00% |
| State Industrial | 6/30/15 | 18.02% | 10.00% |
| State Safety | 6/30/20 | 22.91% | 11.50% |
Rates Effective July 1, 2025
Bargaining Unit 2
| Bargaining Unit 2 | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous1e | 17.41% | -0.30% | No | 8.50% |
| State Industrial | 18.57% | -0.43% | No | 9.00% |
| State Safety | 23.06% | -0.63% | No | 11.50% |
Bargaining Unit 5
| Bargaining Unit 5 | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous1f | 17.41% | -0.30% | No | 8.75% |
| California Highway Patrol | 31.46% | -1.42% | Yes | 14.50% |
Bargaining Unit 18
| Bargaining Unit 18 | Total Normal Cost | Change | Change Needed | Member Rate |
|---|---|---|---|---|
| State Miscellaneous1g | 17.41% | 1.93% | No | 10.00% |
| State Industrial11h | 18.57% | 0.55% | No | 10.00% |
| State Safety | 23.06% | 0.15% | No | 11.50% |
Member contribution rates for Bargaining Unit 18 will remain unchanged because half of the normal cost is lower than current member rates.
Additional Resources
More information can be found on the CalPERS website under the Finance & Administration Committee meeting, agenda item 5d (PDF) on April 14, 2025. 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