July 2018

Proposition 98 Overview

Districts' Pension Contribution Rates and Costs

(Dollars in Millions)

  2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Contribution Rates               
CalSTRS 8.25% 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10%
CalPERS 11.44 11.77 11.85 13.89 15.53 18.06 20.80 23.50
                 
Contribution Amounts              
CalSTRSa                
School Districts $2,086 $2,463 $3,120 $3,724 $4,443 $5,213 $6,037 $6,615
Community College Districtsb 179 207 262 314 374 439 508 557
     Totalsc $2,265 $2,670 $3,382 $4,038 $4,817 $5,651 $6,545 $7,171
CalPERS                
School Districts $1,122 $1,104 $1,214 $1,509 $1,710 $2,090 $2,476 $2,875
Community College Districtsd 202 205 221 275 312 381 452 524
     Totalse $1,323 $1,309 $1,435 $1,784 $2,022 $2,471 $2,928 $3,399
Total District Contributions              
School Districts $3,208 $3,567 $4,334 $5,233 $6,153 $7,303 $8,513 $9,489
Community College Districts $380 $412 $482 $589 $686 $820 $960 $1,081
     Totals $3,588 $3,979 $4,817 $5,821 $6,839 $8,123 $9,473 $10,570
                 
a Statewide payroll through 2016-17 based on CalSTRS' creditable compensation reports. Thereafter, payroll grows at administration's assumed rate of 4 percent per year.
b Share of CalSTRS contributions from community colleges through 2016-17 based on split of payroll from CalSTRS' creditable compensation reports. Thereafter, we assume 2016-17 share is constant.
c Total CalSTRS contributions through 2015-16 based on tables in the annual Governor's Budget. Thereafter, totals are estimates based on administration's payroll growth assumption.
d Share of CalPERS contributions from community colleges based on information from CalPERS.     
e Amounts through 2016-17 from CalPERS Comprehensive Annual Financial Report. Thereafter, amounts are CalPERS projections.  
CalSTRS = California State Teachers’ Retirement System. CalPERS = California Public Employees’ Retirement System.