July 2024

Proposition 98 Overview

Districts' Pension Contribution Rates and Amounts

(Dollars in Millions)

  Actual   Projectionsa
  2022-23 2023-24 2024-25   2025-26 2026-27 2027-28
Contribution Rates              
CalSTRS 19.1% 19.1% 19.1%   19.1% 19.1% 19.1%
CalPERS 25.4% 26.7% 27.8%   28.5% 28.9% 30.3%
Contribution Amounts              
CalSTRSb       
School districts $6,160 $6,544 $7,070   $7,317 $7,573 $7,838
Community colleges 515 531 567   587 608 629
Subtotals ($6,675) ($7,075) ($7,637)   ($7,904) ($8,181) ($8,467)
CalPERSc       
School districts $3,277 $3,848 $4,121   $4,344 $4,528 $4,881
Community colleges 574 616 660   695 725 781
Subtotals ($3,851) ($4,464) ($4,781)   ($5,039) ($5,253) ($5,662)
Total District Contributions       
School districts $9,438 $10,392 $11,191   $11,661 $12,101 $12,719
Community colleges 1,088 1,147 1,227   1,282 1,333 1,410
Totals $10,526 $11,539 $12,418   $12,943 $13,434 $14,129
               
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates and amounts for 2025-26 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.
c Contribution amounts are estimates provided by CalPERS as of January 2024.
CalSTRS = California State Teachers' Retirement System. CalPERS = California Public Employees’ Retirement System.