APERS' two greatest responsibilities are paying the benefits it owes its members and managing the trust fund from which those payments are drawn. That trust fund relies on three sources of income: investment earnings, member contributions, and employer contributions.

Although investment earnings have contributed the greatest share over the life of the fund, they are also the least predictable and most variable of the income sources.  It is the contributions of members and employers that seeded the fund and are the easiest to plan for and control.

As you know, your salary is only part of your compensation. It also includes other benefits like health insurance and leave time.  You are reminded of these benefits and your contributions to them in every pay stub.  The benefit you don't see is the contributions your employer makes to the APERS retirement fund on your behalf.

Most APERS members first hired before July 2005 are non-contributory and do not pay into the retirement fund.  Those first hired after July 2005 are contributory and 5% of their paycheck is withheld pre-tax and paid into the fund (in return for a slightly higher benefit).  However, their APERS employers* currently pay an additional 15.32% of their payroll into the fund.  That means for every dollar your employer pays to you, that employer contributes another 15.3 cents to APERS on your behalf.  

As you see in the graph below,  that percentage has been trending upwards over the last 10 years while your employee contributions have remained flat.




Article from "APERSpective" Active Members Newsletter - Winter 2019

Arkansas public employees retirement system

Here you will find information based on your role in our system, whether you are an active member, near retirement, a retired member or an APERS participating employer.