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Member Contributions

This article explains the different types of contributions in a retirement plan, including normal cost, unfunded accrued liability, and settlement contributions. It also discusses how these costs are shared between employers and members. Additionally, it covers the concept of deferred normal cost contributions and the requirement for equal sharing of contribution increases.

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Member Contributions

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  1. Member Contributions

  2. Composition • Normal Cost (25/75 with employer) • Prior cost or Unfunded Actuarial Accrued Liability (UAAL 100% to employer) • Basic Normal Cost (25/75 with employer) • COLA Normal Cost (50/50 with employer) • Prior cost or Unfunded Actuarial Accrued Liability (UAAL 100% to employer) • Normal Cost (50/50 with employer) • Prior cost or Unfunded Actuarial Accrued Liability (UAAL 100% to employer)

  3. Settlement (Enhanced ) Benefit Supplemental Contribution • Settlement Agreement. … to the extent undistributed earnings are unavailable in the future to make additional contributions on the employers’ and members’ behalf…then the employer and employee contribution rates shall be increased…

  4. COL Contributions • 31873. any increases in contributions shall be shared equally between the county or district and the contributing members…

  5. * Deferred Normal Cost – Contributions Phase-In

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