January 2026

Proposition 98 Overview

District Pension Contribution Rates and Amounts

(Dollars in Millions)

  Actual   Projectionsa
  2024-25 2025-26   2026-27 2027-28 2028-29 2029-30
Contribution Rates       
CalSTRS 19.1% 19.1%   19.1% 19.1% 19.1% 19.1%
CalPERS 27.1 26.8   26.4 26.9 26.1 25.3
Contribution Amounts       
CalSTRSb              
School districts $7,070 $7,669   $7,896 $8,153 $8,418 $8,692
Community colleges 567 628   655 676 698 720
Subtotals ($7,637) ($8,297)   ($8,551) ($8,829) ($9,116) ($9,412)
CalPERSc              
School districts $4,453 $4,992   $5,053 $5,293 $5,279 $5,261
Community colleges 701 759   768 805 803 800
Subtotals ($5,154) ($5,751)   ($5,821) ($6,098) ($6,082) ($6,061)
Total District Contributions       
School districts $11,523 $12,661   $12,949 $13,446 $13,697 $13,952
Community colleges 1,268 1,387   1,423 1,481 1,501 1,521
Totals $12,791 $14,048   $14,372 $14,927 $15,198 $15,473
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates and amounts for 2026-27 and subsequent years will be updated based on actual teacher payroll and investment returns, among other factors.
b Contribution amounts are for CalSTRS' Defined Benefit Program and are LAO estimates based on creditable compensation. Share of contributions from schools and community colleges through 2025-26 are based on the split of payroll from CalSTRS' creditable compensation reports. Thereafter, we assume the shares remain constant.
c Contribution amounts are estimates provided by CalPERS as of January 2026.
CalSTRS = California State Teachers' Retirement System. CalPERS = California Public Employees’ Retirement System.