January 2023

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 2026-27
Contribution Rates                
CalSTRS 17.1% 16.2% 16.9% 19.1%   19.1% 19.1% 19.1% 19.1%
CalPERS 19.7% 20.7% 22.9% 25.4%   27.0% 28.1% 28.8% 29.2%
Contribution Amounts              
CalSTRSb                  
School districts $5,183 $5,045 $5,413 $6,160   $6,531 $6,760 $6,996 $7,241
Community colleges 438 427 464 515   529 547 566 586
Subtotals ($5,621) ($5,472) ($5,877) ($6,675)   ($7,060) ($7,307) ($7,562) ($7,827)
CalPERSc                  
School districts $2,392 $2,625 $2,982 $3,277   $3,586 $3,836 $4,042 $4,213
Community colleges 415 456 522 574   628 672 708 738
Subtotals ($2,807) ($3,081) ($3,504) ($3,851)   ($4,214) ($4,508) ($4,750) ($4,951)
Total District Contributions               
School districts $7,575 $7,670 $8,395 $9,438   $10,118 $10,596 $11,038 $11,454
Community colleges 853 883 986 1,088   1,156 1,219 1,274 1,324
Totals $8,428 $8,553 $9,381 $10,526   $11,274 $11,815 $12,312 $12,778
Notes:                  
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates for and amounts for 2023-24 and subsequent years are estimates, and 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 2023-24 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.