2LEGISLATIVE ANALYST’S OFFICE
March 20, 2013
70 YEARS OF SERVICE
Contribution Rates Set in Statute.
Unlike the California PublicEmployees’ Retirement System (CalPERS)—which has theauthority to set employer contribution rates—contribution levelsto CalSTRS from members, districts, and the state are set instatutes adopted by the Legislature.
Billion of Contributions in 2012-13.
In 2012-13,school and community college district employees, districts, andthe state are expected to contribute a total amount of $5.7 billionto CalSTRS. Contribution rates set in current law are as follows:
Employees contribute 8 percentof their pay to CalSTRS’ DB Program.
Districts contribute 8.25 percent ofpayroll to the DB Program.
The state currently pays about 5 percentof teacher payroll (measured on a two-year lag) to the DBProgram and a companion program—the SupplementalBeneﬁt Maintenance Account—combined. (This percentagewill grow slightly in future years, but not enough to address asubstantial part of CalSTRS’ funding problem.)
Overview of CalSTRS’ Current Funding