July 2022

Proposition 98 Overview

Districts' Pension Contribution Rates and Amounts

(Dollars in Millions)

  Actual   Projectionsa
  2019-20 2020-21 2021-22   2022-23 2023-24 2024-25 2025-26
Contribution Rates                
CalSTRS 17.1% 16.2% 16.9%   19.1% 19.1% 19.1% 19.1%
CalPERS 19.7% 20.7% 22.9%   25.4% 27.0% 28.1% 28.8%
Contribution Amounts               
CalSTRSb                
School districts $5,183 $5,045 $5,413   $6,160 $6,376 $6,600 $6,830
Community colleges 438 427 464   515 533 551 571
Subtotals ($5,621) ($5,472) ($5,877)   ($6,675) ($6,909) ($7,151) ($7,401)
CalPERSc                
School districts $2,392 $2,625 $2,982   $3,277 $3,586 $3,836 $4,042
Community colleges 415 456 522   574 628 672 708
Subtotals ($2,807) ($3,081) ($3,504)   ($3,851) ($4,214) ($4,508) ($4,750)
Total District Contributions               
School districts $7,575 $7,670 $8,395   $9,438 $9,962 $10,436 $10,873
Community colleges 853 883 986   1,088 1,161 1,223 1,278
Totals $8,428 $8,553 $9,381   $10,526 $11,123 $11,659 $12,151
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates for 2022-23 are finalized, but contribution amounts for 2022-23 are estimates. Rates and amounts for subsequent years will be updated based on actual teacher payroll and investment returns, among 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.
c Contribution amounts are estimates provided by CalPERS. Excludes payments made by the state on behalf of employers.
CalSTRS = California State Teachers' Retirement System. CalPERS = California Public Employees’ Retirement System.