For Local Government (political subdivisions), employers choose how much to contribute to employee accounts, from 0 percent up to the normal cost of the fund.
Beginning Jan. 1, 2025, the normal cost is 4.2 percent through Dec. 31, 2025. The normal cost as of Jan. 1, 2026, will be 4.4 percent through Dec. 31.
In addition, political subdivisions must make a supplemental contribution toward the fund’s actuarial unfunded liability. The contribution rate is 7.0 percent through Dec. 31, 2025, and will be 6.8 percent through Dec. 31, 2026.
Please note that the rate breakdown can change each year.