Estimated Employer Contribution Rate Applicable to 2026-27 Payroll

1/30/2026

Issue No. 2026-1

To: Chief School Administrators 
College and University Presidents 
District Contacts 
Employer Secure Area Contacts

To assist you with 2026-27 budget preparations, we recommend you use an estimated Employer Contribution Rate (ECR) of 8.24% of payroll. This projected rate is consistent with Administrative Bulletin 2025-15, issued in October 2025, in which we estimated a range between 8.25% and 8.75%.

The funds associated with the estimated ECR of 8.24% will be collected in the fall of 2027. We send this alert well in advance to assist with your planning. Please note that the ECR of 8.24% remains an estimate. The Retirement Board is expected to adopt the final 2026-27 ECR at its July 29, 2026 meeting and an Administrative Bulletin formalizing the rate will follow shortly thereafter.

The decrease in the estimated ECR reflects investment returns that exceeded expectations. Please note, school districts are permitted to maintain internal TRS Retirement Contribution Reserve Funds, which may be used to set aside surplus funds in years when contribution requirements are lower. 

For more information and a history of the ECR, see the Employer Contribution Rate page.

If you have any questions, please call Employer Billing at 800-348-7298, ext. 2820.