The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - A supplemental pension payment allows pension systems to invest more money sooner. This, in turn, allows for higher investment returns than otherwise would be the case. These higher investment returns reduce future required contributions from employers to the unfunded liability than would otherwise be the case.
https://lao.ca.gov/Publications/Report/4887

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - In both types of plans, employers and employees might make contributions towards the plan over the course of employees ’ careers. The primary difference between the two plans is (1)  who makes investment decisions and (2)  who bears the risk of investment losses.
https://lao.ca.gov/Publications/Report/4800

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - The first is payment towards the “normal cost, ” which is the amount of money that actuaries determine (based on actuarial assumptions like expected investment returns on assets) must be contributed to prefund the benefit earned by employees today.
https://lao.ca.gov/Publications/Report/5047

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

Jul 14, 2025 - The reduced amount of money invested in the trust fund will result in higher unfunded liabilities in the long-run. In most of the agreements, the state ’s contributions towards the benefit would be fully restored in 2027-28.
https://lao.ca.gov/Publications/Report/5064

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

Jun 27, 2025 - (Under the policy, the state continues to make pay-as-you-go payments for benefits received by retirees.) The money contributed by the state and employees to prefund the benefit is put in a trust fund.
https://lao.ca.gov/Publications/Report/5060

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

Sep 9, 2025 - Suspending employer and employee contributions creates a short-term benefit to both the employer and employee; however, it will result in less money being invested in the trust fund and higher unfunded liabilities for the state in the long run.
https://lao.ca.gov/Publications/Report/5073

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - As a pension plan matures and its cashflow becomes negative, its portfolio is less able to recover from investment losses. This is because the pension system effectively has a shorter time horizon to recoup the loss before money from the portfolio is needed to pay benefits.
https://lao.ca.gov/Publications/Report/4920

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - (Under the policy, the state continues to make pay-as-you-go payments for benefits received by retirees.) The money contributed by the state and employees to prefund the benefit is put in a trust fund.
https://lao.ca.gov/Publications/Report/5058

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - Assumptions that actuaries make related to investment returns, membership and payroll growth, age of retirement and life expectancy for retirees, and other aspects that impact CalSTRS’ projected benefits payments, contributions, and revenues.
https://lao.ca.gov/Publications/Report/4400

The 2022-23 Budget: Analysis of the Care Economy Workforce Development Package

Mar 10, 2022 - Without this information, and without information on what additional number of care economy providers —by provider type —is necessary to fulfill statewide need, assessing what workforce gaps would be addressed by the proposed package and the extent to which particular workforce gaps would be filled is difficult.
https://lao.ca.gov/Publications/Report/4572