The 2025-26 Budget: Concession Bargaining

May 19, 2025 - The share of normal cost and unfunded liabilit y paid by the state and employees is determined in statute and collective bargaining agreements. It is set as a percentage of pay. While payments towards normal cost are shared by employees, the state generally is responsible for any payments towards the unfunded liability.
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - This results in the study undervaluing the benefit earned by journey-level state correctional officers and overvaluing the benefit earned by entry-level employees. If the study had, instead, used the unblended employer share of normal cost to value the pension benefits earned by state correctional officers, the study would have
https://lao.ca.gov/Publications/Report/4800

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - An unfunded liability exists when the projected value of pension benefits earned to date exceeds the projected assets of the pension system. While the state shares normal cost with employees, unfunded liabilities generally are the state ’s responsibility.
https://lao.ca.gov/Publications/Report/4920

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

Jun 27, 2025 - Declining Share of Employees at Top Step. Figure  2 shows that the share of Unit 12 members who are at the top step of their job classification ’s pay range has decreased significantly over the past couple of decades and appears to be continuing to decline.
https://lao.ca.gov/Publications/Report/5060

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Employer Contributions for “Unfunded Liabilities. ” An unfunded liability means that the projected value of pension benefits earned to date exceeds the projected assets of the pension system. While the state shares normal cost with employees, unfunded liabilities generally are the state ’s responsibility.
https://lao.ca.gov/Publications/Report/4887

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

Jul 14, 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/5064

The 2021-22 May Revision: Golden State Stimulus 2

May 18, 2021 - Expanded benefits also replaced a larger share of workers ’ lost earnings. An unemployed minimum wage worker, who normally makes $520 per week, received $860 per week in the spring and summer under the federal increase and will receive $560 per week under the recent federal extension, which continues through September 2021.
https://lao.ca.gov/Publications/Report/4435

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 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/5058

MOU Fiscal Analysis: Bargaining Unit 9 (Professional Engineers)

Jun 27, 2025 - Under state law, vacation or annual leave is considered a form of wages that is vested when earned. As such, employers cannot adopt a “use it or lose it ” policy for earned employee vacation and annual leave whereby unused vacation or annual leave above a certain level is forfeited at the end of the year.
https://lao.ca.gov/Publications/Report/5061

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - Recent Budget Actions and Proposals to Address State’s Share of UAO This section outlines the state ’s recent supplemental payments for the state ’s share of CalSTRS ’ UAO, as well as the administration ’s related proposal for 2021 ‑22.
https://lao.ca.gov/Publications/Report/4400