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. As of Jan. 1, 2021, the normal cost is 4.0 percent.
In addition, political subdivisions must make a supplemental contribution toward the fund’s actuarial unfunded liability. As of Jan. 1, 2021, the supplemental contribution is 7.2 percent.
Please note that the breakdown of the rate can change each year.