Employers who do not have enough in employer paid contributions from wage reporting to meet the minimum monthly contribution and have negative reserves must meet the minimum contribution.
For most employers, the 2026 minimum contribution is based on an eighteen year period at 8.225% of the unfunded liability.
Calculation of Minimum Contribution
|
Unfunded obligation liability |
$129,659 |
|
Multiplied by the 8-year amortization factor |
.08225 |
|
Required minimum contribution |
$10,664.45 |
|
Minimum Monthly Contribution |
$888.70 |