Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - The proposed amount —equivalent to 0.5  percent of estimated creditable compensation —effectively would make up for the fact that the state ’s rate will be 0.5  percentage points lower in 2021 ‑22 than it would have been in absence of the 2020 ‑21 rate increase suspension.
https://lao.ca.gov/Publications/Report/4400

MOU Fiscal Analysis: Bargaining Unit 18 (Psychiatric Technicians)

Jan 9, 2020 - Employee and state contributions will increase July 1, 2021 and every year thereafter if the total normal cost for Unit 18 retiree health benefits increases by more than 0.5  percent of pay from the prior year.
https://lao.ca.gov/Publications/Report/4134

MOU Fiscal Analysis: Bargaining Unit 12 (Craft and Maintenance)

Jun 27, 2025 - While the agreement would allow for the contribution rate to be adjusted, those adjustments would be limited to 0.5  percent per year. This constraint makes it even less likely full funding can be achieved by 2046.
https://lao.ca.gov/Publications/Report/5060

The 2020-21 Spending Plan: Pensions

Oct 12, 2020 - The California State Teachers ’ Retirement System (CalSTRS) Funding Plan, Chapter  47 of 2014 (AB  1469, Bonta), gave the CalSTRS board limited authority to increase the state ’s contribution rate to the pension system ’s Defined Benefit program by up to 0.5  percent of payroll annually, beginning in 2017 ‑18.
https://lao.ca.gov/Publications/Report/4279

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 26, 2019 - One-half (rounded to the nearest quarter percent) of the current blended normal cost would require employees to contribute 8.5  percent of pay —0.5  percent of pay higher than their current contributions.
https://lao.ca.gov/Publications/Report/4089

MOU Fiscal Analysis: Bargaining Unit 10 (Professional Scientists)

Aug 28, 2018 - In 2019-20 and 2020-21, if the actuarially determined normal costs to prefund retiree health benefits increases or decreases by more than 0.5  percent, the employer and employee contributions to prefund these benefits would be adjusted so that each pays one-half of total normal costs.
https://lao.ca.gov/Publications/Report/3881

A Review of the CalSTRS Funding Plan: Conclusion

Feb 2, 2016 - Similarly, allowing state rates to increase by more than the current 0.5 percentage point maximum could keep districts from having to pay for part of the state ’s share following bad investment years.
https://lao.ca.gov/Publications/Report/3339

MOU Fiscal Analysis: Bargaining Units 10 (Professional Scientists) and 18 (Psychiatric Technician)

Sep 9, 2025 - The proposed agreement would reestablish the pay increases for employees at the top step of their salary range and increase by 0.5  percentage points, to a total 3.5  percent, the pay increase received by employees not at the top step.
https://lao.ca.gov/Publications/Report/5073

MOU Fiscal Analysis: Bargaining Unit 19 (Health and Social Services/Professional)

Sep 1, 2023 - The proposed agreement would reduce Unit 19 members’ employee contribution rates towards their pension benefits by 0.5 percent of pay effective July 1, 2024 and again July 1, 2025. Effective July 1, 2026, similar to what has been adopted for other bargaining units, the employee contribution rate would be reevaluated each year to maintain the standard that employees pay one-half of normal cost.
https://lao.ca.gov/Publications/Report/4797

MOU Fiscal Analysis: Bargaining Unit 13 (Stationary Engineers)

Jun 24, 2022 - As a result of this provision, the state and employee contributions to prefund retiree health benefits would decrease 0.5  percent of pay from 3.9  percent of pay to 3.4  percent of pay. Other Major Issues Allows for Reopening of Agreement to Address Issues With California State Payroll System.
https://lao.ca.gov/Publications/Report/4607