LACERA's retirement fund relies on investment earnings and contributions from LACERA’s plan sponsors (employers) and members (employees).
Most LACERA plans are contributory plans, meaning both you and your employer contribute (except for Plan E, which is employer-only and referred to as a noncontributory plan).
Contribution rates for employers and employees are determined by LACERA’s actuary, subject to retirement law. Rates are subject to change based on actuarially determined factors such as adjustments to the fund's assumed rate of investment return and actuarial methods and assumptions that project the system’s ability to pay for future benefits. In general, when the investment return assumption is lowered, employer and member contributions are increased; when the investment return assumption is raised, employer and member contributions are lowered. See How Rates Are Set for more information.
Contribution rates are adjusted:
- Annually for employers and members of General Plan G and Safety Plan C (PEPRA plans)
- Generally every three years for members of General Plans A, B, C, D, and Safety Plans A and B (legacy plans)
Member Contribution Rates
Your contribution rate is a percentage of your compensation, paid semimonthly through automatic payroll deductions. This percentage depends on your plan and is either a flat rate, for members of PEPRA plans, or is based on your entry age into the system, for members of legacy plans. Payment of tax on your contributions and earned interest is deferred until you retire or terminate service and withdraw your accumulated contributions.
Some legacy plan members are eligible for cancellation of contributions. Read more under 30-Year Cancellation of Contributions.
Current Member Contribution Rates
Contribution rates vary by plan and are subject to change. See your individual plan page for current rates or log in to My LACERA.