2025 updates to salary limit and member redirect

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Employer News Bites 2

 

January 14, 2025

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Salary limit and member redirect for 2025

Every January 1, PERS updates the annual salary limit and monthly member redirect salary threshold amounts in accordance with the Consumer Price Index (CPI) for the Western States. This ensures that the numbers we use to calculate retirement benefits keep pace with inflation and cost of living.

Based on the 2024 CPI increase of 2.4% over 2023, the updated numbers are as shown below:

Salary limit: $238,567; member redirect: $3,777

About salary limit

The annual salary limit places a limitation on the amount of subject salary that PERS can use to calculate an employee’s PERS benefits. The 2025 salary limit is $238,567. You must report any subject salary earned over that limit as non-subject salary.

The salary limit prorated by months of employment (for a year in which an employee works fewer than 12 months) is on the Salary Limit webpage.

 

About member redirect

Member redirect automatically transfers a portion of an employee’s 6%-of-salary Individual Account Program (IAP) deduction into their Employee Pension Stability Account (EPSA) each time they earn over a certain amount in monthly salary. The 2025 monthly member redirect salary threshold is $3,777

About EPSAs
The funds in each PERS member’s EPSA will be used to help pay for their future pension benefits. This helps reduce employer contribution rates. Learn more about member redirect, employee options to make up the redirected amount (called voluntary contributions), and the member redirect employer-rate offset on the Member Redirect webpage


For more information

If you have questions or need help, contact your ESC representative.