Your employer chooses from a menu of benefit options that best suits their workforce management goals and budgetary constraints. One of those elections is whether or not employees will assist with the funding of their LAGERS benefit.

Employee Contributions

Employers may require employees to contribute 0%, 2%, 4% or 6% of gross pay. The contribution amount is added to the employer’s portion to make the full required contribution. For example, if an employer’s total cost to fund their LAGERS benefit is 12%, and they require a 4% employee contribution, the employer pays 8% of gross payroll and the employee pays 4%  of gross payroll to make up the total required contribution.

Notes About Employee Contributions:

• You or your beneficiary will never receive back less than you paid in, plus interest
• Contributions are made after-tax (will not reduce your taxable income today).
• A portion of your retirement benefit will not be taxable

You can view your accumulated contribution balance online through your myLAGERS account.

Active Member Refund

When an employer has elected the active member refund, this means the employer at one point required employees to contribute, have not required contributions for at least 2 years and chose to refund active employees’ contributions plus interest.