"The average
employee contribution reached its highest level since late 2006, at 8.7%, and average rates among women hit a record of 8.5%."
Senate Bill 1068 could eventually require up to 4 percent of all public workers' "
employee contribution" of 6 percent of salary to be redirected from their individual pension accounts to help buttress the underfunded pension system, if public agencies' pension costs climb too high.
Annual premium Single Coverage Public Sector Private Sector Union Nonunion Union Nonunion
Employee contribution $810 $740 $740 $1,150 Employer cost $5,940 $4,920 $5,440 $4,080 Family Coverage Public Sector Private Sector Union Nonunion Union Nonunion
Employee contribution $3,680 $5,630 $2,570 $5,110 Employer cost $13,030 $9,580 $12,540 $9,920 NOTE: Public sector excludes federal employees.
While the
employee contribution up to 10 per cent of basic plus dearness allowance, or DA, is eligible for deduction under Section 80CCD within the ` 1 lakh limit, the employer's contribution up to 10 per cent of basic plus DA is eligible for deduction under Section 80CCE over and above the ` 1 lakh limit.
While the
employee contribution up to 10% of basic plus dearness allowance, or DA, is eligible for deduction under Section 80CCD within the Rs 1 lakh limit, the employer's contribution up to 10% of basic plus DA is eligible for deduction under Section 80CCE over and above the Rs 1 lakh limit.
INCREASING
EMPLOYEE CONTRIBUTIONS. Sixteen legislatures increased
employee contribution amounts this year, and nine did so last year.
(The
employee contribution will be eligible for tax relief.) In the case of existing company pension schemes, it has been proposed to simplify the process by which companies can opt out of NEST.
Under the pact, the employee health care contribution rate remains at 13 percent, and the
employee contribution to the pension system increases by 1 percent.
Employee contribution rates: Current
employee contribution rates of two percent, four percent and eight percent remain, but the proposal to introduce six percent and 10 percent rates was scrapped.