The Arizona State Retirement System rate will change, effective July 1. The new contribution rate will apply to all classified staff and those service professionals and faculty who participate with ASRS.
The rate increase previously announced by ASRS would have moved the employee retirement contribution from 9.6 percent to 10.50 percent of gross pay. Long term disability would remain at .25 percent.
In addition, the Arizona Legislature recently passed changes to employee benefits that include a change to the 50 percent employee / 50 percent employer contribution rate split for ASRS contributions.
Beginning July 1, the rate split will be 53 percent employee / 47 percent employer (with the savings required to be returned to the state’s general fund). While more detailed information is still coming from ASRS, they are estimating that the increase to employees due to this change will be approximately 0.6 to 0.7 percent.
This will increase the employee contribution to approximately 11.1 percent to 11.2 percent of gross pay (a total increase of approximately 1.5 to 1.6 percent from what is being paid right now).
Watch for further communication as NAU receives more detailed information from ASRS about the exact amount of the increase and the impact on the current .25 percent long-term disability portion of the contribution.