The contributions paid by members and their employers held steady from 2014 to 2017 as the Plan continued to recover following the global financial crisis of 2008.
Through effective risk management and prudent planning, the LAPP Board was able to reduce the contribution rates in 2018 by 1% for members and another 1% for employers. This was the first contribution rate reduction for the Plan in 20 years.
Following the annual actuarial valuation conducted in 2018, the Board made the decision to reduce contribution rates again for 2019, meaning members and employers will now pay even less for the same level of great pension benefits.
The total combined (aggregate) contribution rate (employers and employees) for 2019 is 20.16% of pensionable salary. Employers match employee contributions and pay an extra 1%.
These contributions go towards covering current service, which is the cost of estimated future pensions to members who are actively contributing to LAPP.