In percentage, what is the contribution by teachers, the districts and the state? What is the revenue from investments?

Jun. 6, 2011 Jack Ehnes
in

Contribution rates are set by state law. CalSTRS members contribute 8 percent of their pay to CalSTRS, a rate that has not changed for nearly 40 years. School districts contribute 8.25 percent of each member’s earnings, an amount that has not increased since 1990. Since 1998, the state’s contribution to the Defined Benefit Program has decreased from 4.607 percent of payroll to the current 2.017 percent. The state pays an additional 2.5 percent of payroll for purchasing power protection.

The chart below shows the current contribution rates paid to CalSTRS compared with the retirement-related costs associated with other pension systems.

Over the last 15 years, investment earnings represented 55 percent of the total resources to pay benefits.

CalSTRS Comparison with Other Pension Plans
(Percentage of Payroll)
Employee Social Security Employee Defined Benefit Employer Social Security Employer Defined Benefit State Total
CalPERS Classified
School Employees
(2010-11)1		 6.20% 7.00% 6.20% 10.71% N.A. 30.11%

Average Teacher Plan Not Covered by Social Security2

 N.A. 9.12% N.A. 14.79% N.A. 23.92%

CalSTRS
(2010-11)

 N.A. 8.00% N.A. 8.25% 1.86%3 18.11%
Sources/Notes
1 - CalPERS
2 - CalSTRS staff research 2011
3 - Current payroll rate is equivalent amount of 2.017% of fiscal year ending in a prior calendar year