Employees whose retirement plan is through the Iowa Public Employees' Retirement System (IPERS) will see an increase in their contribution rate in July.
The contribution rate for employees who are IPERS members will increase to 6.29 percent, up from the current rate of 5.95 percent. That means an additional 0.34 percent of their paycheck will automatically divert to IPERS. For an employee with an annual salary of $60,000, for example, the contribution to IPERS would increase $17 per month.
The employer contribution also is increasing, up to 9.44 percent from the current rate of 8.93 percent.
Contribution rates are different for IPERS members in protection occupations, including some officers with ISU Police. The employee contribution rate for protection occupations will increase to 6.81 percent from 6.56 percent.
The increases are effective for any wages received on or after July 1, so employees paid twice monthly will see the change in their mid-month paycheck on July 13. For employees paid monthly, the new rate will kick in on the July 31 paycheck.
"If employees have any questions they should contact the UHR benefits team by phone at 294-4800 or by email at benefits@iastate.edu," said Ed Holland, UHR benefits director.
Contribution rates are set annually by IPERS, based on an actuarial valuation. Rates can't increase or decrease by more than 1 percentage point per year. The new rates are in place through June 30, 2019.
IPERS, a public defined-benefit pension plan, is one of two retirement plans available to Iowa State employees. When hired, faculty and staff elect to contribute to either the IPERS plan or a defined contribution 403(b) plan offered through TIAA.
