IPERS members and their employers each contribute money to the IPERS Trust Fund every month. Members contribute a small amount directly from their paycheck.
These contributions are pooled and invested to pay for future retirement benefits. At retirement, your benefit is calculated based on your salary and years of service. The longer you work in public service, the larger your benefit.
Per its Contribution Rate Funding Policy, IPERS annually hires an actuarial firm to study the System’s assets and liabilities and determine the required contribution rates for each membership group.
For many years, the contribution rates for members and employers were established in law. Beginning in 2012, IPERS’ Investment Board was able to establish the contribution rates for based on the annual actuarial valuation study.
The contribution rate is split 60% employer/40% employee for Regular and Protection Occupations Members and 50%/50% for Sheriffs/Deputy Sheriffs Members.
In CY2025, the interest rate on member and employer contributions is 2.76%.
| Member Share | Employer Share | Total | |
|---|---|---|---|
| Regular Members | |||
| 7/1/24 – 6/30/25 | 6.29% | 9.44% | 15.73% |
| 7/1/25 – 6/30/26 | 6.29% | 9.44% | 15.73% |
| Sheriffs and Deputy Sheriffs | |||
| 7/1/24 – 6/30/25 | 8.51% | 8.51% | 17.02% |
| 7/1/25 – 6/30/26 | 12.09% | 12.09% | 24.18% |
| Protection Occupation | |||
| 7/1/24 – 6/30/25 | 6.21% | 9.31% | 15.52% |
| 7/1/25 – 6/30/26 | 6.21% | 9.31% | 15.52% |
See contribution rates and wage maximums history (Categorized by Occupation Code)
Calendar year wage ceiling
The IRS annually establishes a maximum wage ceiling. This is the maximum wage amount from which contributions to IPERS must be withheld. Wages above this ceiling are not subject to IPERS withholding, and employers do not include them on IPERS reports. IPERS monitors covered wages for members with multiple employers. IPERS accepts all covered wages until a member has reached the IRS limit and will notify employers that report wages over the limit. IPERS will return any excess contributions.
CY2025 wage ceiling: $350,000