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MFPRSI. Municipal Fire & Police Retirement System of Iowa

Contribution Rates

Employee Rate: 9.40%
Employer Rate: 30.12%*

*Effective July 1, 2013, to June 30, 2014

Contribution Rate Formula

The contribution rate structure is established by Iowa Code Chapter 411. The rate specified for the employees is set by the statute, currently at 9.40% of earnable compensation. The rate for the employer is established each year by the Board of Trustees following the completion of the annual actuarial valuation. Beginning in 1978, the State of Iowa contributed an amount to the plan each year to provide for the partial payment of a benefit enhancement which was enacted in 1977. These dollars contributions from the State are being phased out over a two year period.

The required contribution rate as determined by the System's actuary is developed below:

Valuation as of July 1, 2012 (Contribution Effective July 1, 2013)

Preliminary Total Contribution

  1. Annual Normal Cost: $47,487,380
  2. Estimated Member Contributions: 24,300,697
  3. 25-Year Amortization of Unfunded Accrued Liability: 54,681,143
  4. Total (Cities plus State) Contributions = (1) – (2) + (3): 77,867,826

Cities' Contribution

  1. Preliminary Total Contribution = (4): 77,867,826
  2. Estimated State Contribution: 0
  3. Preliminary Cities' Contribution = (5) – (6): 77,867,826
  4. Covered Payroll: 258,518,051
  5. Cities' Contribution as a percent of payroll = (7) / (8): 30.12%
  6. Minimum required contribution rate for Cities: 17.00%
  7. Cities' Contribution = [Greater of (9) or (10)] x (8): 77,865,637

Historical Contribution Rates

Table: Cities Required Contribution Rate

17.00% for the period 1/1/92 – 6/30/93*
19.66% for the period 7/1/93 – 6/30/94
18.71% for the period 7/1/94 – 6/30/95
17.66% for the period 7/1/95 – 6/30/96
17.00% for the period 7/1/96 – 6/30/97*
17.00% for the period 7/1/97 – 6/30/98*
17.00% for the period 7/1/98 – 6/30/99*
17.00% for the period 7/1/99 – 6/30/00*
17.00% for the period 7/1/00 – 6/30/01*
17.00% for the period 7/1/01 – 6/30/02*
17.00% for the period 7/1/02 – 6/30/03*
20.48% for the period 7/1/03 – 6/30/04
24.92% for the period 7/1/04 – 6/30/05
28.21% for the period 7/1/05 – 6/30/06
27.75% for the period 7/1/06 – 6/30/07
25.48% for the period 7/1/07 – 6/30/08
18.75% for the period 7/1/08 – 6/30/09
17.00% for the period 7/1/09 – 6/30/10*
19.90% for the period 7/1/10 – 6/30/11
24.76% for the period 7/1/11 – 6/30/12
26.12% for the period 7/1/12 – 6/30/13
30.12% for the period 7/1/13 – 6/30/14

* Rate certified at statutory minimum of 17.00%