January 2022

Proposition 98 Overview

Districts' Pension Contribution Rates and Amounts

(Dollars in Millions)

  2021-22 2022-23 2023-24 2024-25 2025-26
Contribution Ratesa          
CalSTRS 16.9% 19.1% 19.1% 19.1% 19.1%
CalPERS 22.9% 25.4% 25.2% 24.6% 23.6%
Contribution Amounts        
CalSTRSb          
School districts $5,413 $6,151 $6,366 $6,588 $6,819
Community colleges 464 514 532 551 570
Subtotals ($5,877) ($6,665) ($6,898) ($7,139) ($7,389)
CalPERSc          
School districts $2,982 $3,399 $3,466 $3,478 $3,430
Community colleges 522 595 607 609 601
Subtotals ($3,504) ($3,994) ($4,073) ($4,087) ($4,031)
Total District Contributions        
School districts $8,395 $9,550 $9,832 $10,066 $10,249
Community colleges 986 1,109 1,139 1,160 1,171
Totals $9,381 $10,659 $10,971 $11,226 $11,420
Notes:          
a Rate projections for 2022-23 through 2024-25 are current budgeting estimates from CalSTRS and CalPERS and take into account 2020-21 investment returns. Final rates for those years will vary based on actual investment returns in current and future years and other factors.
b Total contribution amounts are LAO estimates based on creditable compensation. Share of contributions from schools and community colleges through 2022-23 are based on the split of payroll from CalSTRS' creditable compensation reports. Thereafter, we assume the 2022-23 share is constant. Excludes payments made by the state on behalf of employers. For contributions made by the state on districts' behalf, see here.
c Contribution amounts are estimates provided by CalPERS. Excludes payments made by the state on behalf of employers. For contributions made by the state on districts' behalf, see here.
CalSTRS = California State Teachers' Retirement System.
CalPERS = California Public Employees’ Retirement System.