News & Press: Key Alert

PERS Budget Estimate FY 20/21

Tuesday, January 14, 2020  

PERS Budget Estimate for FY 20/21

To assist you in budgeting for your PERS payment due April 2021, we offer the following calculation to estimate your 2020/2021 PERS budget appropriation.

2nd Quarter 2019 PERS IROC 10 month salaries X 10/3= 10 month Annualized Salaries

PLUS

2nd Quarter 2019 PERS IROC 12 month salaries X 12/3= 12 month Annualized Salaries

Equals Total Annualized Salaries

Total Annualized Salaries Times an Estimated PERS Employer Contribution Rate (Last year’s rate was 13.69%)  See https://www.state.nj.us/treasury/pensions/2020-employer-billing.shtml for historical trend of rates.)

Plus, any ERIP district obligations, deferred pension payments (Chapter 19), NCGI & LTD Exp EQUALS TOTAL ESTIMATED APRIL 2021 PAYMENT

Example

10 month quarterly salaries $300,000 X 10/3= $1,000,000

12 month quarterly salaries $120,000 X 12/3 = $480,000

= Total annualized salaries $1,480,000 X 13.69%= $202,612 + ERIP obligations + deferred pension payments (Chapter 19) +NCGI +LTD Exp (for Tier 4 & 5 salaries annualized times an estimated rate of .2747).

Current detailed billings can be found at the following link for comparison purposes:

https://www.state.nj.us/treasury/pensions/documents/financial/2020-pers-billing.pdf


NJASBO
4 AAA Drive Suite 101,
Robbinsville New Jersey 08691
P: (609) 689-3870 F: (609) 689-3167