Savings Plus Program: An Optional Retirement Benefit for State Employees

Mar 14, 2017 - Role That State Retirement Benefits —Including SPP —Play in Retirement Security. Although everyone can benefit from saving money for their retirement during their career, we conclude that long ‑term state employees likely could retire without relying heavily on savings because of the financial security provided by state ‑funded benefits.
https://lao.ca.gov/Publications/Report/3616

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - Unlike salary-driven benefits, salary plays no role in determining the value of non-salary-driven benefits earned by employees. The most common type of benefits in this category, like those described below, are insurance plans.
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - The normal cost is the amount of money that actuaries determine must be set aside for the benefit employees earn today so that the contribution and any future investment returns on that contribution are sufficient to pay for the benefit after the employee retires.
https://lao.ca.gov/Publications/Report/4800

A Review of the CalSTRS Funding Plan: Theoretical Investment Gains Have Shifted Unfunded Liabilities to Districts

Feb 2, 2016 - Specifically, the calculation estimates what CalSTRS’ unfunded liabilities would be now if (1) teachers earned less generous pension benefits and (2) the state and teachers had contributed more to CalSTRS’ main pension fund.
https://lao.ca.gov/Publications/Report/3334

CalSTRS Funding: An Update

May 5, 2017 - An unfunded liability exists when the amount of assets a pension program has is insufficient to cover projected liabilities for pension benefits earned to date. Figure  1 displays CalSTRS ’ historical “funded ratio ” —a ratio of assets to liabilities.
https://lao.ca.gov/Publications/Report/3662

A Review of the CalSTRS Funding Plan: CalSTRS Funding Plan Relies on Abstract Calculation

Feb 2, 2016 - In general, the state will pay for these smaller theoretical unfunded liabilities —as determined by the calculation —while districts will pay the difference between total real world unfunded liabilities and the state ’s share.
https://lao.ca.gov/Publications/Report/3333

MOU Fiscal Analysis: Bargaining Units 1, 3, 4, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21

Jan 10, 2017 - Because the state ’s retiree health benefit is the same for an employee earning $30,000 as it is for an employee earning $100,000, the amount of money needed to prefund the benefit represents a larger share of a lower-income worker ’s salary.
https://lao.ca.gov/Publications/Report/3520

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

Jun 27, 2025 - However, the benefit earned by the employee is based on their full (not reduced) salary. Accordingly, during furloughs, the state systematically underfunds its pensions —contributing to larger unfunded liabilities.
https://lao.ca.gov/Publications/Report/5060

The 2017-18 Budget: Governor’s CalPERS Borrowing Proposal

May 16, 2017 - Introduction The state has large unfunded liabilities associated with retirement benefits earned by state employees. A recent decision by the California Public Employees' Retirement System (CalPERS) board will require the state to contribute more money each year to pay down pension liabilities.
https://lao.ca.gov/Publications/Report/3673

A Review of the CalSTRS Funding Plan: Funding Plan May Not Meet Principle of “Shared Responsibility”

Feb 2, 2016 - As we described in our third post , the abstract calculation central to the funding plan implementation gives the state the benefit of theoretical investment gains that do not exist in the real world.
https://lao.ca.gov/Publications/Report/3337