For Local Government entities (political subdivisions), employers choose how much to contribute to employee accounts, from 0 percent up to the normal cost of the fund.
The normal cost is 4.4 percent beginning Jan. 1, 2024, and will remain at 4.4 percent through Dec. 31, 2024. Beginning Jan. 1, 2025, through Dec. 31, 2025, the normal cost will be 4.2 percent.
In addition, political subdivisions must make a supplemental contribution toward the fund’s actuarial unfunded liability. The supplemental contribution rate is 6.8 percent and will remain at 6.8 percent through Dec. 31, 2024. The supplemental contribution rate for 2025 will be 7.0 percent beginning Jan. 1, 2025.
Please note that the breakdown of the rate can change each year.