The 2020-21 Spending Plan: Pensions

Oct 12, 2020 - The 2020 ‑21 Spending Plan repurposes the $2.3  billion supplemental payment to buy down districts ’ contribution rates further in 2020 ‑21 and also to lower districts ’ rates in 2021 ‑22. Whereas the supplemental CalSTRS and CalPERS payments would have reduced pension costs over the long run (akin to paying principal on a mortgage), repurposing the supplemental payments as rate relief payments does not reduce long-run costs.
https://lao.ca.gov/Publications/Report/4279