The Contribution Stabilization Program (CSP) is an optional program that allows you to pay a portion of your annual pension contributions to the Fund when due and pay the remainder over time with interest. The CSP establishes a graded contribution rate system that, if you elect to participate, enables you to amortize a portion of your annual contribution over a ten-year period. Once an employer elects to participate in the CSP, their contributions are based on the graded rate system regardless of whether they choose to amortize in any year.
The program was designed to help the State and municipalities manage and smooth pension contribution costs when rates jumped substantially after the Great Recession. The program limits the increases or decreases in contribution rates from year to year. This means employers may be able to amortize a portion of their invoice as rates increase or they may have to make an additional graded payment as rates decrease.
Participation in the program does lead to higher costs over the long-term for employers who elect to participate since interest is charged on the amounts amortized. Employers may withdraw from the CSP if they have paid off all previous amortizations, plus interest.
As contribution rates become less volatile from year to year, fewer municipalities are finding it necessary to utilize the program and fewer employers are eligible to amortize.
If you are eligible, you can opt into the program now or in the future by submitting a form.
Visit our Participation in the Program page for more information and instructions for withdrawing from the CSP or opting in.
If you enrolled in the Alternate Contribution Stabilization Program during the 2013 – 2014 billing cycle, go to our Alternate Contribution Stabilization Program page for information about that program. If you have an outstanding amortization, your invoice will show CH57LAW2010, if you are in the CSP. If it shows CH57LAW2013, then you are in the Alternate Program.