January 2025

Proposition 98 Overview

District Pension Contribution Rates and Amounts

(Dollars in Millions)

  Actual   Projectionsa
  2023-24 2024-25   2025-26 2026-27 2027-28 2028-29
Contribution Rates             
CalSTRS 19.1% 19.1%   19.1% 19.1% 19.1% 19.1%
CalPERS 26.7% 27.1%   27.4% 27.5% 28.5% 28.2%
Contribution Amounts            
CalSTRSb              
School districts $6,544 $7,070   $7,658 $7,906 $8,163 $8,429
Community colleges 531 567   626 647 668 689
Subtotals ($7,075) ($7,637)   ($8,284) ($8,553) ($8,831) ($9,118)
CalPERSc              
School districts $3,848 $4,453   $4,637 $4,785 $5,098 $5,185
Community colleges 616 701   730 753 802 816
Subtotals ($4,464) ($5,154)   ($5,367) ($5,538) ($5,900) ($6,001)
Total District Contributions       
School districts $10,392 $11,523   $12,295 $12,691 $13,261 $13,614
Community colleges 1,147 1,268   1,356 1,400 1,470 1,505
Totals $11,539 $12,791   $13,651 $14,091 $14,731 $15,119
Notes:              
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates and amounts for 2025-26 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 2025.
CalSTRS = California State Teachers' Retirement System. CalPERS = California Public Employees’ Retirement System.