The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - CalSTRS is the world ’s largest educator ‑only pension system, administering the $315  billion Teachers ’ Retirement Fund for more than 1  million members and beneficiaries (as of June 2023). CalSTRS ’ 12 ‑member Teachers ’ Retirement Board (CalSTRS Board) administers the fund and is constitutionally responsible for overseeing the system ’s
https://lao.ca.gov/Publications/Report/4887

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

Sep 9, 2025 - Twice each year through June 30, 2028, the parties would discuss methods and opportunities to improve the state ’s ability to recruit and retain Unit 18 members. Contracting Out. Twice a year, the parties would meet to examine existing personal services contracts that call for services found in Unit 18 class specifications.
https://lao.ca.gov/Publications/Report/5073

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Aug 19, 2025 - As such, if the state were to incorporate a DROP as part of its compensation package to Uni t 8 members, the state would bear the risks associated with the program (for example, if actual investment returns fell short of the interest rate applied to funds in a DROP account).
https://lao.ca.gov/Publications/Report/5066

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists)

Jul 14, 2025 - Medical Education Leave. The agreement would increase the number of medical education leave hours that Unit 16 members receive each fiscal year from 56 hours to 60 hours. The agreement also increases the number of continuing medical education leave hours that employees may carry over year over year from 112 hours to 120 hours.
https://lao.ca.gov/Publications/Report/5064

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - These bargaining units include the nine units represented by Local 1000 (Units 1 [administrative, financial, and staff services], 3 [professional educators and librarians], 4 [office and allied], 11 [engineering and scientific technicians], 14 [printing and allied trades], 15 [allied services], 1 7 [registered nurses], 20 [medical and social services], and 21
https://lao.ca.gov/Publications/Report/5047

Savings Plus Program: An Optional Retirement Benefit for State Employees

Mar 14, 2017 - Even a modest account balance of $50,000 could substantially improve the retirement security of this employee. Saving Improves Financial Security Most for Certain Employees Although everyone can benefit from saving money for their retirement during their career, retired long ‑term state employees likely could retire without relying heavily on savings because of the level of financial security provided by state ‑funded benefits.
https://lao.ca.gov/Publications/Report/3616

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - Simplifying these aspects of the funding plan could help improve legislative oversight, lessen the volatile effects of investment returns on the state ’s actuarially required contribution rate, and align impacts of investment returns across the state ’s and employers ’ actuarially required contribution rates.
https://lao.ca.gov/Publications/Report/4400

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - The primary difference between the two plans is (1)  who makes investment decisions and (2)  who bears the risk of investment losses. In the case of a defined benefit plan, the employer chooses how the funds are invested and bears all the risk of investment loss —the employee is provided a guaranteed annuity in retirement.
https://lao.ca.gov/Publications/Report/4800

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - If the agreement is not ratified, that $206.8  million would be invested in the prefunding trust fund and given the next two decades to grow. If the fund averaged an annual return of 5  percent over the next 20 years, the $206.8  million would more than double to nearly $550  million.
https://lao.ca.gov/Publications/Report/5058

A Review of the CalSTRS Funding Plan: Background

Feb 2, 2016 - Since the late-1990s, when CalSTRS was estimated to be fully funded, its funding situation has worsened due mainly to three factors: Beginning in the late 1990s, a series of state actions increased member benefits and reduced state and teacher contributions to CalSTRS ’ main pension fund; Large investment losses, most notably during the 2008
https://lao.ca.gov/Publications/Report/3332