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Kentucky Association of Counties

CERS board votes on employer contribution rates for FY 2027

By Kayla Carter Smith, Policy Analyst
Rates to be lowered following actuarial valuation

Employers contributing to the County Employees Retirement System (CERS) will pay a lower rate next fiscal year.

The CERS Board of Trustees voted unanimously at its Nov. 10. 2025 meeting to approve an employer contribution rate of 17.43% for CERS nonhazardous employees for FY 2027, down 1.19 percentage points from the current contribution rate of 18.62%.

The rate will also decrease for CERS hazardous duty members. The FY 2027 rate will be 34.72%, down 1.01 percentage points from the current rate of 35.73%.

The FY 2027 rates will take effect on July 1, 2026.

The ability to lower rates was attributed to favorable investments and increases in membership payroll in the system. The unfunded pension liability continues to decrease with CERS nonhazardous being funded at 61% and CERS hazardous up to 57% as of 2025. 

View meeting materials here.

View the recording of the Nov. 10 meeting here.

 

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