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Contribution Rate Expected to Increase for Teachers' Retirement System NYSUT Briefing Bulletin Number 04-04 March 2004 In February 2004, the New York State Teachers' Retirement System (NYSTRS) alerted school districts to expect a significant increase in the required employer contribution rate (ECR). The ECR is determined annually through an actuarial valuation of NYSTRS' assets and liabilities. "For budgeting purposes, we recommend you use an estimated ECR of 5.63% of pay," said NYSTRS in Administrative Bulletin No. 2004-01, which was sent to all school superintendents in February 2004. The payments will be made to the TRS through deductions from district state aid payments in September, October, and November 2005. The estimated 5.63% ECR for 2004-05 is more than double the 2.52% ECR for 2003-04. Although this expense will not be paid until the 2005-06 school year, school districts that use an accrual basis of accounting will need to budget this expense in 2004-05. Despite the recent increases in the ECR, the rates are still dramatically lower than they were in the 1980s. For example, the ECR in the 1980s ranged from a high of 23.49% to a low of 14.79%. The following table provides a history of the ECR from 1982-83 to
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