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PEPRA Contribution Change Notice

At its January Retirement Board meeting, the Retirement Board adopted new employer (District) contribution rates for both the Pension and Health Insurance Benefit (HIB) Plans for fiscal year 2022 (FY22). These rates are based on updated annual Actuarial Valuations which were also adopted at that meeting. Employees in the 2013 Tier will be impacted by this change in the contribution rate.

Memo from Employee Relations

The actuarially determined normal cost for the PEPRA 2013 Tier has changed by more than one percent of payroll from the original 2013 Tier normal cost calculation. As a result, the employee contribution rate for 2013 Tier employees will increase from 8.75% to 9.41%. The updated employee contribution rate will take effect the first full pay period following July 1, 2021 (check payable July 23, 2021). Impacted employees will receive notice of this change by June 23, 2021. 

Under the MOUs, the 1955/1980 Plan employee contribution rate is currently set at 8.75% of payroll. Included in this contribution rate is a 0.09% contribution to the HIB.  The employee contribution rates for the 1955/1980 Plan remains unchanged for FY22.

The District Board of Directors will be notified of this change Tuesday, May 13, 2021.

If you have questions about this change, please contact Valerie Weekly, Principal Management Analyst-Retirement, at Valerie.Weekly@EBMUD.com or 510-287-0760.

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