What is the employer and employee contribution rate?
Under the CORP, the employee contribution rate is fixed by statute at 8.50% of salary on a pre-tax basis. Before July 1, 2000, employee contributions were made to the CORP on an after tax basis. The employer contribution rates are different for each employer in the Plan and changes every fiscal year, based upon an actuarial valuation. If investment returns are better than expected or if benefit payments are lower than expected, the employer rate will generally decrease. Conversely, if investment returns are not as good as expected or if more benefits are paid than expected, the employer rate will generally increase.
