Contribution Rates & Funding

SCERS is a defined benefit retirement system funded through a combination of member contributions, employer contributions, and investment earnings. Employers play a critical role by remitting accurate and timely contributions on behalf of each covered employee.

This page provides an overview of how contribution rates are established. For detailed rate information, visit Contribution Rates.

How SCERS Is Funded

SCERS maintains a pooled trust fund, meaning all contributions from members and employers are combined and professionally managed. Members do not have individual investment accounts, and their retirement benefits are not affected by market performance.

The system is funded from three primary sources:

• Member Contributions: Based on the actuarial cost of funding future retirement benefits, and deducted through payroll; varies by employer, tier, and membership category
• Employer Contributions: Based on the actuarial cost of funding future retirement benefits, and amortization of unfunded liabilities, and paid by the employer; varies by employer, tier, and membership category
• Investment Income: Generated by the SCERS investment portfolio.