<!-- Creative Commons Attribution-NonCommercial-NoDerivatives https://creativecommons.org/licenses/by-nc-nd/4.0/ --></p> <p>from <a href=""https://calmatters.org/author/adam-ashton/"" title=""Posts" by="" adam="" ashton="" class=""author" url="" fn="" rel=""author"">Adam Ashton</a>CalMatters</p> <figure> <img decoding="async" width=""1200"" height=""800"" src=""https://i0.wp.com/calmatters.org/wp-content/uploads/2024/10/091324_CHP-Graduation_FM_CM_14.jpg?fit=1200%2C800&ssl=1"" class=""attachment-post-thumbnail" size-post-thumbnail="" wp-post-image="" alt=""The" reflection="" of="" a="" law="" enforcement="" officer="" is="" seen="" on="" window="" along="" with="" three="" flag="" poles="" the="" u.s.="" california="" and="" chp="" flags.="" decoding=""async"" loading=""lazy"" srcset=""https://i0.wp.com/calmatters.org/wp-content/uploads/2024/10/091324_CHP-Graduation_FM_CM_14.jpg?w=2000&ssl=1" https:="" sizes=""auto,"/><figcaption>The California Highway Patrol hosts a swearing-in ceremony for more than 100 new officers at the CHP Academy in Sacramento on September 13, 2024. Photo by Florence Middleton, CalMatters</figcaption></figure> <p>This story was originally published by <a href=""https://calmatters.org/"">CalMatters</a>. <a href=""https://calmatters.org/subscribe-to-calmatters/"">Sign up</a> for their newsletters.</p> <p>There’s a surprise in the upcoming budget for the California Public Employees’ Retirement System: the cost of <a href=""https://calmatters.org/tag/pensions/"">payment of pensions</a> actually starts to decrease.</p> <p>Don’t get too excited. Fees are still high by historical standards. The state expects to spend $9.8 billion on <a href=""https://ebudget.ca.gov/2026-27/pdf/BudgetSummary/FullBudgetSummary.pdf"">contributions to CalPERS</a> next year more than twice <a href=""https://ebudget.ca.gov/2016-17/pdf/Enacted/BudgetSummary/FullBudgetSummary.pdf"">$4.8 billion in spending since 2016</a>.</p> <p>But a <a href=""https://www.calpers.ca.gov/documents/202604-financeadmin-agenda-item5d-07-a/download?inline"">new CalPERS analysis</a> predicts that the rate of government contributions to pensions will decline over the next few years.</p> <p>This is most evident in what CalPERS expects to charge the state for California Highway Patrol pensions. This year, the state is paying 69 cents toward CHP pensions for every $1 it spends on officer salaries.</p> <p>The formula reflects both the cost of investing to retire current officers and the additional money the state puts into pensions to pay back debts from past CalPERS losses. </p> <p>CHP pensions were especially expensive because, until 2013, these officers and other public safety employees were entitled to <a href=""https://www.latimes.com/projects/la-me-pension-crisis-davis-deal/"">generous pension formulas</a> which allowed them to retire at age 50 with a pension income of 90% of their wages. </p> <p>Next year, the state contribution rate for CHP pensions will drop to 64 cents for every dollar in salary offered.</p> <p>Hey, it’s better than a number with a 7 in front of it.</p> <p>Recent strong investment returns are part of the reason why the contribution rate is declining a bit. Another thing is that the state <a href=""https://calmatters.org/newsletter/chp-hiring-2025/"">is in the process of hiring CHP officers</a>. This means more employees pay into the fund. They put 14.5% of their earnings into CalPERS.</p> <p>New hires also earn benefits under a less generous formula and <a href=""https://calmatters.org/politics/capitol/2025/06/jerry-brown-california-pensions/"">you work longer to earn a full pension</a>. Employees hired under the post-2013 retirement formula now make up 48 percent of the CHP workforce, according to CalPERS.</p> <p>Going forward, CalPERS expects pension contribution rates to drop for other state employees as well.</p> <p>These results are of course subject to change. If CalPERS <a href=""https://calmatters.org/economy/2025/07/calpers-investment-gain-after-tariff/"">is not meeting its investment income goals</a>the state will have to bring in more money to make up for the loss. Today, CalPERS is considered underfunded because its assets are worth about 80% of what it owes over time to its beneficiaries.</p> <p>This article was <a href=""https://calmatters.org/justice/2026/04/calpers-chp-pensions/"">originally published on CalMatters</a> and is republished under <a href=""https://creativecommons.org/licenses/by-nc-nd/4.0/"">Creative Commons Attribution-NonCommercial-No Derivatives</a> license.</p> <p> Copy the HTML
