The funding of pensions is not completely straight forward. Here are a couple twists.
- VSTRS. The Vermont State Teachers Retirement System used to have just the teachers and the state contributing to the fund but . . .
- By state law school districts must pay an assessment for each new member of VSTRS. Starting in 2019 that assessment is adjust by inflation. The assessment, used for retiree health care cost, is paid to the VSTRS benefits fund. This is not a one-time assessment for each new member. As the new member moves through the system, the assessment continues. In this way, the counts of teachers paying the assessment increases with each new member until the count is equal to the total number of teachers in the district. For FY2020 this amount is $1,308.
- Federal Grants
- By state law school district employees who's position is funded by Federal Grants must pay the employer portion of their retirement benefit from that grant. Each year the state publishes a rate that districts are advised to use in estimating the cost. For FY2020 the rate is 19.15%. It is applied to the "total earnable compensation" of those paid by federal grants.