July 2023

Proposition 98 Overview

Districts' Pension Contribution Rates and Amounts

(Dollars in Millions)

  Actual   Projectionsa
  2019-20 2020-21 2021-22 2022-23 2023-24   2024-25 2025-26 2026-27
Contribution Rates               
CalSTRS 17.1% 16.2% 16.9% 19.1% 19.1%   19.1% 19.1% 19.1%
CalPERS 19.7% 20.7% 22.9% 25.4% 26.7%   27.7% 28.3% 28.7%
Contribution Amounts               
CalSTRSb                  
School districts $5,183 $5,045 $5,413 $6,160 $6,544   $6,774 $7,011 $7,256
Community colleges 438 427 464 515 531   549 568 588
Subtotals ($5,621) ($5,472) ($5,877) ($6,675) ($7,075)   ($7,323) ($7,579) ($7,844)
CalPERSc                  
School districts $2,392 $2,625 $2,982 $3,277 $3,799   $4,054 $4,258 $4,440
Community colleges 415 456 522 574 665   710 746 777
Subtotals ($2,807) ($3,081) ($3,504) ($3,851) ($4,464)   ($4,764) ($5,004) ($5,217)
Total District Contributions               
School districts $7,575 $7,670 $8,395 $9,438 $10,343   $10,828 $11,269 $11,695
Community colleges 853 883 986 1,088 1,196   1,259 1,314 1,366
Totals $8,428 $8,553 $9,381 $10,526 $11,539   $12,087 $12,583 $13,061
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates for and amounts for 2023-24 and subsequent years are estimates and will be updated based on actual teacher payroll and investment returns, among other factors.
b Total contribution amounts are LAO estimates based on creditable compensation. Share of contributions from schools and community colleges through 2023-24 are based on the split of payroll from CalSTRS' creditable compensation reports. Thereafter, we assume the 2022-23 share is constant. Excludes payments made by the state on behalf of employers.
c Contribution amounts are estimates provided by CalPERS. Excludes payments made by the state on behalf of employers.
CalSTRS = California State Teachers' Retirement System. CalPERS = California Public Employees’ Retirement System.