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Contribution Rates

Each employer is required to contribute at the rate determined by the Board of Trustees to be necessary for the actuarial soundness of KRS as required by law.  Employer contributions are paid on creditable compensation earned by each employee eligible for membership in KRS. 

Employee Contributions

All employees meeting the requirements for membership are required to contribute a percentage of their gross wages, referred to as creditable compensation, to KRS.

When mandatory employee contributions are deducted from an employee's check, the contributions are exempt from Federal and State Income Tax withholding.  Mandatory employee contributions have been exempt from Federal and State Income Tax withholdings since August 1, 1982.  These contributions are tax deferred, which means the contributions are withheld from employees’ gross pay before Federal and State Income Tax. 

From January 1, 1987 through December 31, 2016, Federal Social Security withholdings were also exempt.  This changed January 1, 2017 under a Memorandum of Agreement between the Commonwealth of Kentucky and the Internal Revenue Service.  As of January 1, 2017, employee contributions are deducted after Federal Social Security is withheld.


Employer Contributions

Fiscal Years 2019 and 2020

Fiscal Years 2019 and 2020 KERS and SPRS Employer Contribution Rates Memo

Fiscal Years 2019 CERS Employer Contribution Rates Memo


Effective July 1, 2017

KERS & SPRS Employer Contribution Rates 2017-2018
SystemRates 2017-2018
KERS Nonhazardous49.47%
KERS Hazardous23.70%
SPRS91.24%

The KRS Board of Trustees is required by Kentucky Revised Statutes 61.565 and 61.702 to determine the employer contribution rates for the KERS and SPRS systems based on an annual actuarial valuation.  The Kentucky General Assembly established the final rates in the biennial executive branch budget bill.

2017-2018 KERS and SPRS Employer Contribution Rates Memo


CERS Employer Contribution Rates 2017-2018
SystemRates 2017-2018
CERS Nonhazardous19.18%
CERS Hazardous31.55%

The KRS Board of Trustees sets the final CERS employer contribution rates pursuant to Kentucky Revised Statutes 61.565 and 61.702.  The  actuarial valuations were performed by KRS' actuary for the fiscal year ended June 30, 2016. 

2017-2018 CERS Employer Contribution Rates Memo




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