{"id":618263,"date":"2026-04-21T06:44:17","date_gmt":"2026-04-21T06:44:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/618263\/"},"modified":"2026-04-21T06:44:17","modified_gmt":"2026-04-21T06:44:17","slug":"how-chp-hiring-spree-bent-the-curve-on-calpers-contribution-rates-calmatters","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/618263\/","title":{"rendered":"How CHP hiring spree bent the curve on CalPERS contribution rates- CalMatters"},"content":{"rendered":"

By Adam Ashton<\/a>, CalMatters<\/p>\n

\t\t\t\t\""The\"
\n\t\t\t\tThe California Highway Patrol hosts a swearing-in ceremony for more than 100 new officers at the CHP Academy in Sacramento on Sept. 13, 2024. Photo by Florence Middleton, CalMatters<\/p>\n

This story was originally published by CalMatters<\/a>. Sign up<\/a> for their newsletters.<\/p>\n

There\u2019s a surprise in the upcoming budget for the California Public Employees\u2019 Retirement System: The cost of paying for pensions<\/a> is actually starting to come down.<\/p>\n

Don\u2019t get too excited. The charges are still high by historical standards. The state expects to spend $9.8 billion on contributions to CalPERS<\/a> next year, more than double the $4.8 billion cost from 2016<\/a>.<\/p>\n

But a new CalPERS analysis<\/a> projects the state\u2019s contribution rate toward pensions will decline over the next few years.<\/p>\n

It\u2019s most evident in what CalPERS expects to bill the state for California Highway Patrol pensions. This year, the state is paying 69 cents toward CHP pensions for every $1 it spends on wages for officers.<\/p>\n

The formula reflects both the costs of investing for current officers\u2019 retirements as well as extra money the state plows into pensions to pay down debts from past CalPERS losses.\u00a0<\/p>\n

CHP pensions were especially expensive because until 2013 those officers and other public safety employees were eligible for generous pension formulas<\/a> that allowed them to retire at age 50 with retirement income worth 90% of their salaries.\u00a0<\/p>\n

Next year, the state\u2019s contribution rate for CHP pensions will drop to 64 cents for every dollar in offer pay.<\/p>\n

Hey, that beats a number with a 7 in front of it.<\/p>\n

Recent strong investment returns are part of the reason the contribution rate is declining a bit. Another is that the state has been on a hiring spree for CHP officers<\/a>. That means more employees are paying into the fund. They put 14.5% of their earnings into CalPERS.<\/p>\n

The new hires also earn benefits under a less generous formula and work longer to earn a full retirement<\/a>. Officers hired under the post-2013 retirement formula now make up 48% of the CHP workforce, according to CalPERS.<\/p>\n

Further out, CalPERS anticipates pension contribution rates will drop for other state workers, too.<\/p>\n

These results, of course, are subject to change. If CalPERS misses its investment earnings targets<\/a>, the state will have to kick 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>\n

This article was originally published on CalMatters<\/a> and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives<\/a> license.<\/p>\n

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