Core-CT Daily Mail - FY 26 Fringe Benefits Rates

Comptroller’s Memorandum No. 2025-13, FY 2025-26 Fringe Benefit Recovery Rates has been published to the State Comptroller’s website.

The main factors for the changes in fringe benefit rates between years are summarized below:

SERS Regular Retirement – The projected FY 2026 rate for SERS Regular is 49.23 percent. The retirement cost pool for SERS Regular is expected to increase at a higher rate than the projected salary base resulting in a slight increase between FY-25 vs FY-26.

SERS Hazardous Duty (HD) – The SERS Hazardous Duty (HD) retirement rate is projected to be 77.97 percent in FY 2026 due to the new actuarial valuation as well as the increase in the salary base in conjunction with an increase in the total cost pool.

Alternative Retirement Program (ARP) – The Alternative Retirement Program (ARP) rate is projected to be 19.94 percent in FY 2026 because of ARP contributions and the employer share of OPEB. The Governor’s budget includes funding to eliminate any ARP past deficiencies resulting in a higher rate between years.

Teachers’ Retirement – The Teacher’s retirement rate is projected to be 40.65 percent in FY 2026 due to an increase in the cost pool driven largely by an increase in the retirement contributions included in the budget.

Judges Retirement – The Judges Retirement rate for FY 2026 is projected to be 65.43 percent due to the increase in the cost pool generated by the OPEB share in conjunction with an increase in salary base.

Unemployment Compensation (UC) – Due to higher projected unemployment costs based on the Governor’s budget proposal, the UC rate for FY 2026 is projected to be 0.10 percent.

Comptroller’s Memorandum No. 2025-14 with the FY 2025-26 Workers’ Compensation Recovery Rates is also available on the OSC website.