Contribution Rates

Employer and Employee contribution rates were set by the Montana Legislature during the 2013 Montana Legislative Session.

Employee Contribution Rate

This is the rate TRS members pay from wages toward future retirement benefits.

Tier One and Tier Two Members: 8.150%

 

Employer Contribution Rates

This is the amount paid by the employer on employee wages toward the employee's future retirement benefit starting July 1, 2023.

School Districts, Education Cooperatives, Counties, and Community Colleges:

Active Members: 9.47%

Working Retirees: 11.85%

Re-employed Working Retirees (19-20-732, MCA): 20.11%

 

State Agencies and State University Systems:

Active Members: 11.82%

Working Retirees: 11.85%

Actuarial Rates

This rate is determined by the TRS Board with a start date of July 1, 2022.

7.30% 

Member Account Interest

Active TRS Member contribute a portion of their gross salary to TRS. These funds are tracked in each member's contribution account and TRS pays interest on these funds each month at a rate set by the TRS Board.

4.25% as of July 1, 2024

Median Average Final Compensation (AFC)

Each year, TRS calculates the median AFC of members who retired the preceding fiscal year. This is used to calculate post-retirement earning limitations.

July 1, 2024
Median AFC: $69,216.94
49% Median AFC: $33,916.30

July 1, 2023
Median AFC: $65,675.61
49% Median AFC: $32, 181.05

 

Historical Rate Archive


This table show the percentage an active TRS member pays on wages toward future retirement benefits. This rate is set by the Montana State Legislature; the current rates were set in the 2013 Legislative session.
Employee Contribution Rates
Start Date End Date Tier One* Member Tier Two** Member
7/1/2013 – 8.150% 8.150%
7/1/1999 6/30/2013 7.150% –
7/1/1983 6/30/1999 7.044% –
7/1/1977 6/30/1983 6.187% –
7/1/1975 6/30/1977 6.125% –
7/1/1973 6/30/1975 5.125% –
7/1/1937 6/30/1973 5.000% –

* Tier One: become a member of TRS before July 1, 2013
** Tier Two: became a member of TRS on or after July 1, 2013


This table shows the percentage each School District, Education Cooperative, County, and Community College pays on employee wages toward their TRS members' future retirement benefits. This rate is set by the Montana Legislature; the current rates were set in the 2013 Legislative session.

Employer Contribution Rates for School Districts, Education Cooperatives, Counties, and Community Colleges
Start Date End Date Active Members Working Retirees Re-employed Working Retirees*
(19-20-732, MCA)
7/1/2023 – 9.47% 11.85% 20.11%
7/1/2022 6/30/2023 9.37% 11.75% 20.01%
7/1/2021 6/30/2022 9.27% 11.65% 19.91%
7/1/2020 6/30/2021 9.17% 11.55% 19.81%
7/1/2019 6/30/2020 9.07% 11.45% 19.71%
7/1/2018 6/30/2019 8.97% 11.35% 19.61%
7/1/2017 6/30/2018 8.87% 11.25% 19.51%
7/1/2016 6/30/2017 8.77% 11.15% 19.41%
7/1/2015 6/30/2016 8.67% 11.05% 19.31%
7/1/2014 6/30/2015 8.57% 10.95% 19.21%
7/1/2013 6/30/2014 8.47% 9.85% 19.11%
7/1/2009 6/30/2013 7.47% – 17.11%
1/1/1994 6/30/2009 7.470% – –
7/1/1989 12/31/1993 7.459% – –
7/1/1985 6/30/1989 7.428% – –
7/1/1983 6/30/1985 7.320% – –
10/1/1981 6/30/1983 6.463% – –
7/1/1981 9/30/1981 6.432% – –
7/1/1977 6/30/1981 6.312% – –
7/1/1975 6/30/1977 6.250% – –
7/1/1973 6/30/1975 5.250% – –
7/1/1971 6/30/1973 5.125% – –
7/1/1969 6/30/1971 4.500% – –
7/1/1959 6/30/1969 4.000% – –
7/1/1945 6/30/1959 3.750% – –
7/1/1937 6/30/1945 – – –

*In limited circumstances, provisions of 19-20-732, MCA allow certain school districts to re-employ retired TRS members without loss or interruption of retirement benefits.


This table shows the percentage each State Agency and State University System unit pays on employee wages toward their employees' future retirement benefits. This rate is set by the Montana Legislature; the current rates were set in the 2013 Legislative session.

​
Employer Contribution Rates for State Agencies and State University System
Start Date End Date Active Members Working Retirees
7/1/2023 - 11.85% 11.85%
7/1/2022 6/30/2023 11.75% 11.75%

This table shows the assumed rate of return for TRS investment earnings. The rate of return is set by the TRS Board based on data and recommendations from independent actuaries.
Actuarial Rates
Start Date End Date Percent
7/1/2022 – 7.30%
7/1/2018 6/30/2022 7.50%
7/1/2004 6/30/2018 7.75%
Beginning 6/30/2004 8.00%

Active TRS members contribute a portion of their gross salary to TRS, and these funds are tracked in each member's contribution account. TRS pays interest on these funds each month at a rate set annually by the TRS Board. Current and past interest rates are shown below.

NOTE: In a defined benefit pension, a vested member's benefit is based on years of service and average final compensation, not the member's account balance.

Member Account Interest
Start Date End Date Percent
7/1/2024 – 4.25%
7/1/2023 6/30/2024 4.00%
7/1/2021 6/30/2023 0.25%
7/1/2020 6/30/2021 0.85%
7/1/2019 6/30/2020 2.30%
7/1/2018 6/30/2019 1.40%
7/1/2017 6/30/2018 0.75%
7/1/2016 6/30/2017 0.55%
7/1/2014 6/30/2016 0.20%
7/1/2010 6/30/2014 0.25%
7/1/2009 6/30/2010 1.00%
7/1/2008 6/30/2009 2.00%
7/1/2007 6/30/2008 5.00%
7/1/2003 6/30/2007 4.00%
7/1/2002 6/30/2003 4.50%
7/1/1997 6/30/2002 5.50%
7/1/1993 6/30/1997 6.00%
7/1/1988 6/30/1993 7.00%
7/1/1982 6/30/1988 8.00%
7/1/1981 6/30/1982 7.00%
7/1/1971 6/30/1981 5.50%
7/1/1970 6/30/1971 5.25%
7/1/1969 6/30/1970 5.00%
7/1/1968 6/30/1969 4.75%
7/1/1967 6/30/1968 4.50%
7/1/1966 6/30/1967 4.25%
7/1/1963 6/30/1966 4.00%
7/1/1959 6/30/1963 3.50%
7/1/1955 6/30/1959 3.00%
7/1/1943 6/30/1955 2.50%
7/1/1939 6/30/1943 3.00%
7/1/1937 6/30/1939 4.00%

Each year, TRS calculates the median Average Final Compensation (AFC) of members who retired in the preceding fiscal year. This is used to calculate post retirement earnings limitations.
  • Note: A legislative change effective July 1, 2023 increased the allowable earnings limitation for working retirees from one-third to 49 percent of median AFC.
Median AFT
Year Median AFC 1/3 Median AFC 49% Median AFC
7/1/2024 $69,216.94 – $33,916.30
7/1/2023 $65,675.61 – $32,181.05
7/1/2022 $65,371.42 $21,790.47 –
7/1/2021 $64,248.03 $21,416.01 –
7/1/2020 $67,170.59 $22,390.20 –
7/1/2019 $65,269.66 $21,756.55 –
7/1/2018 $61,554.21 $20,518.07 –
7/1/2017 $59,982.63 $19,994.21 –
7/1/2016 $60,240.13 $20,080.04 –
7/1/2015 $59,138.00 $19,712.67 –
7/1/2014 $60,737.70 $20,245.90 –
7/1/2013 $57,756.65 $19,252.21 –
7/1/2012 $57,510.85 $19,170.28 –
7/1/2011 $56,863.57 $18,954.52 –
7/1/2010 $55,887.49 $18,629.16 –
7/1/2009 $52,710.67 $17,570.22 –
7/1/2008 $53,311.55 $17,770.52 –
7/1/2007 $51,336.65 $17,112.22 –
7/1/2006 $48,353.45 $16,117.82 –
7/1/2005 $47,417.01 $15,805.67 –
7/1/2004 $47,942.54 $15,980.85 –
7/1/2003 $45,290.43 $15,096.81 –
7/1/2002 $45,304.46 $15,101.48 –
7/1/2001 $45,528.45 $15,176.15 –
7/1/2000 $43,945.06 $14,648.35 –
7/1/1999 $40,639.42 $13,546.47 –
7/1/1998 $40,465.86 $13,488.62 –
7/1/1997 $40,681.52 $13,560.51 –
7/1/1996 $36,846.00 $12,282.00 –
7/1/1995 $35,989.37 $11,996.46 –
7/1/1994 $37,209.19 $12,403.06 –
7/1/1993 $34,876.33 $11,625.45 –
7/1/1992 $33,704.42 $11,234.81 –
7/1/1991 $34,277.88 $11,425.96 –
7/1/1990 $30,512.28 $10,170.76 –
7/1/1989 $30,839.78 $10,279.93 –
7/1/1988 $30,274.51 $10,091.51 –
7/1/1987 $28,532.10 $9,510.70 –
7/1/1986 $26,867.50 $8,955.84 –
7/1/1985 $25,585.33 $8,528.44 –
7/1/1984 $23,136.83 $7,712.28 –
7/1/1983 $18,174.24 $6,058.08 –