January 2024

Proposition 98 Overview

District 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 2027-28
Contribution Rates          
CalSTRS 17.1% 16.2% 16.9% 19.1% 19.1%   19.1% 19.1% 19.1% 19.1%
CalPERS 19.7% 20.7% 22.9% 25.4% 26.7%   27.8% 28.5% 28.9% 30.3%
Contribution Amounts          
CalSTRSb                    
School districts $5,183 $5,045 $5,413 $6,160 $6,544   $7,042 $7,288 $7,544 $7,807
Community colleges 438 427 464 515 531   563 583 603 625
Subtotals ($5,621) ($5,472) ($5,877) ($6,675) ($7,075)   ($7,605) ($7,871) ($8,147) ($8,432)
CalPERSc                    
School districts $2,392 $2,625 $2,982 $3,277 $3,848   $4,121 $4,344 $4,528 $4,881
Community colleges 415 456 522 574 616   660 695 725 781
Subtotals ($2,807) ($3,081) ($3,504) ($3,851) ($4,464)   ($4,781) ($5,039) ($5,253) ($5,662)
Total District Contributions          
School districts $7,575 $7,670 $8,395 $9,438 $10,392   $11,163 $11,632 $12,072 $12,688
Community colleges 853 883 986 1,088 1,147   1,223 1,278 1,328 1,406
Totals $8,428 $8,553 $9,381 $10,526 $11,539   $12,386 $12,910 $13,400 $14,094
Notes:                    
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates and amounts for 2024-25 and 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 2024-25 are based on the split of payroll from CalSTRS' creditable compensation reports. Thereafter, we assume the shares remain 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.