FY 27 Fringe Benefits Rates

Comptroller’s Memorandum No. 2026-09, FY 2026-27 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 FY 2027 rate for SERS Regular is 53.68 percent. The biggest cost drivers for this rate are the retiree health insurance costs as well as higher contributions for normal costs in the new actuarial valuation.

SERS Hazardous Duty (HD) – The SERS Hazardous Duty (HD) retirement rate for FY 27 is 80.90 percent. This rate is due to the new actuarial valuation for contributions for normal costs as well as an increase in retiree health insurance costs. 

Alternate Retirement Program (ARP) – The Alternate Retirement Program (ARP) rate is 14.27 percent in FY 2027. This rate is a result of an increase in ARP health insurance costs offset in part by the negative roll-forward adjustments.  

Teachers’ Retirement – The Teacher’s retirement rate is 39.56 percent in FY 2027. This rate is due to a decrease in the cost pool driven largely by a slight decrease in retirement contributions as well as negative roll-forward adjustments.

Judges Retirement – The Judges Retirement rate for FY 2027 is 77.84 percent due to the increase in the cost pool generated by both OPEB and retiree health insurance costs.

Unemployment Compensation (UC) – the UC rate for FY 2027 is 0.10 percent. This rate is a result of anticipated costs and the salary base remaining consistent to prior year.

Comptroller’s Memorandum No. 2026-10 with the FY 2026-27 Workers’ Compensation Recovery Rates is also available on the OSC website.