This is a reminder that the final phase-in of statutory contribution rate changes for Group A and Group B members takes effect on August 3, 2018. See below for more information:
- Group A members currently contribute 7% of pensionable pay (base salary, longevity and shift differential, if any) to HMEPS. Effective with the August 3, 2018 pay date, the contribution rate will be 8%.
- Group B members currently contribute 2% of pensionable pay (base salary, longevity and shift differential, if any) to HMEPS. Effective with the August 3, 2018 pay date, the contribution rate will be 4%.
- Group D members currently contribute 2% of pensionable pay (base salary, longevity and shift differential, if any) to HMEPS as member contributions. In addition, each Group D member currently contributes 1% of pensionable pay (base salary, longevity and shift differential, if any), which is credited to a notional cash balance account in the Group D member’s name. There are no further statutory contribution rate changes.
The contribution rate changes were part of the 2017 amendments to the HMEPS pension plan enacted by the Texas Legislature, as summarized in the June 2017 HMEPS Pension Press Newsletter, available here. See the HMEPS Benefits Handbook (as of July 2017) for more information on the pension plan.