Each employer contributes a minimum of 4% of salary on behalf of each participating employee. Through the collective bargaining process, employers are permitted to pay different levels of employee and employer contributions, as long as the following conditions are met:

  • The sum of the employee and employer contributions equals or exceeds 8% of employee salary, but in no event shall the employer contribution rate be less than 4%.
  • The employee and employer contribution rates are the same for each participant employed by the employer.
  • The contribution rates as determined under the collective bargaining agreement become effective on the first day of the plan year and remain in effect for at least one plan year.
  • The employee and employer contribution rate shall be in one-quarter percent increments.