AD96-03 Rate Changes for 1996-97 (Supersedes AD95-3)

Administrative Directive

TO:

All County Superintendents of Schools
District Superintendents of Schools
Community College Districts
Other Employing Agencies.

FROM:

EXECUTIVE OFFICE

SUBJECT:

Administrative Directive 96-03
RATE CHANGES FOR 1996-97
(Supersedes Administrative Directive 95-03)

PURPOSE

The purpose of this Administrative Directive is to inform employers of the new rates adopted by the Teachers’ Retirement Board for the fiscal year beginning July 1, 1996 and ending June 30, 1997.

SCOPE

All employers and members who are subject to the State Teachers’ Retirement System (STRS) laws, rules, and regulations, are subject to these new rates.

DISCUSSION

The following rates are set in statute and do not vary by fiscal year:

Category Rate Education Code Section
Member Contribution Rate 8.00% 22901
Employer Contribution Rate 8.00% 22950
22951

The following Employer rates are adopted each fiscal year by the Teachers’ Retirement Board. The NEW rates for FY 1996/97 are as follows:

Category Prior Rate FY95/96 New Rate FY96/97 Education Code Section Admin. Code Section
Employer Contribution Rate: Reduced Workload Program. 12.43% 12.50% 22713 N/A
Employer Contribution Rate: Elected Union Officer. 12.43% 12.50% 22711 N/A
Present Value Factor for Excess Sick Leave Credit. 0.230% 0.241% 22718 23000
to
23005
Regular Interest Rate. 6.75% 7.50% 22162 N/A
Interest Rate for
Late Remittance.
6.75% 7.50% 23003 N/A
Penalty Rate for Late or Unacceptable Report. Greater of
6.75% or $500
Greater of
7.50% or $500
23006 N/A

If you have further questions, please contact the STRS Membership Division.

Signed,

JAMES D. MOSMAN
Chief Executive Officer