Contribution Rates

Please Note: As of July 1, 2010, KERS and SPRS employers are required by law to pay for all unused sick leave which converts to additional service credit upon a member's retirement. Employers are billed for the cost following the post retirement audit of the member's account. If an employee with unused sick leave hours retired on or after July 1, 2010, and you have not yet received an invoice for a member's sick leave, please be advised it will be forthcoming. If you need a preliminary estimate of the cost for budgetary planning, you may contact your Employer Reporting, Compliance and Education reporting team.​​​​​​​
​​​​​​​​​​​​​​​​​​​​​​​​​​​​

​KER​S and SPRS Employer Contribution Rates for 2017-2018 

View the 2017-2018 KERS and SPRS Employer Contribution Rates Memo here.​​​

SystemEmployer Rate
KERS Nonhazardous49.47%
KERS Hazardous23.70%
SPRS91.24%

The Kentucky Retirement Systems Board of Directors is required by KRS 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 establishes the final rates in the biennial executive branch budget bill. The above employer contribution rates for KERS and SPRS will be in effect on July 1, 2017.​

​CE​RS Employer Contribution Rates 2017-2018

View the 2017-2018 CERS Employer Contribution Rates Memo here.​

SystemEmployer Rate
CERS Non-Hazardous19.18%
CERS Hazardous31.55%

The Kentucky Retirement Systems Board of Directors sets the final CERS employer contribution rates pursuant to KRS 61.565 and 61.702. The most recent actuarial valuations were performed by the Kentucky Retirement Systems actuary (Cavanaugh Macdonald) for the fiscal year ended June 30, 2016. The above employer contribution rates for CERS will be in effect on July 1, 2017.

KERS and SPRS Employer Contribution Rates for 2016-2017
SystemEmployer Rate
KERS Nonhazardous48.59%
KERS Hazardous23.82%
SPRS89.21%
 CERS Employer Contribution Rates for 2016-2017

SystemEmployer Rate
CERS Nonhazardous18.68%
CERS Hazardous31.06%

Historical Contribution Rates 

Getting Help

Employer Reporting, Compliance & Education reporting teams are available to answer any questions a reporting official may have regarding the policies and procedures of KRS.

Employer Contributions

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 Kentucky Revised Statute 61.565. 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 and Federal Social Security withholdings. Mandatory employee contributions have been exempt from Federal and State Income Tax withholdings since August 1, 1982 and from Federal Social Security withholdings since January 1, 1987. As a result, employee contributions to KRS are deducted before Federal and State Income Tax and Federal Social Security are withheld.
 
Since February 2003, employees have also been able to purchase service credit with pre-tax paycheck deductions provided the employer has arranged to make installment deductions with KRS. As such, deductions made with a before tax IPS are not subject to Federal and State Income Tax Withholding and Federal Social Security withholdings.
  • Employer Publications/Forms

    ​A collection of newsletters, handouts, and manuals to help with the reporting process.

    Browse Now
  • Employer Self Service

    ​An application that allows Agency Personnel to manage Employer accounts.

    Login Now
  • Employer Reporting

    ​Learn more about the monthly reporting process. 

    Learn More
  • ERCE Contacts

    ​Need to contact an ERCE Representative?

    Contact Now
  • Employer Training Videos

    Training videos topics that include pension spiking, GASB, and how to update information on ESS.

    View