School districts are being socked with a 29 percent increase in their pension costs this school year.

The increase means schools will pay 11.11 percent of their payroll toward retirement costs in 2012, up from 8.62 percent in the prior school year, which ended June 30, the teachers’ retirement system announced this week. It’s the first double-digit rate in 22 years.

Schools and governments have been grappling with soaring pension costs because more workers are retiring and because of poor returns on Wall Street. Pension funds have had stronger rates of return in recent years, but are still trying to recoup past losses during the recession.

School officials said growing pension costs were equal to the total increase in school spending this year, up about 1.3 percent. The spending increase caused homeowners’ tax levy to grow on average about 3.4 percent this year.

The pension expense comes as schools next July will have to abide by a property-tax cap. The cap will limit tax increases to 2 percent a year or the rate of inflation, whichever is lower.

Schools had state aid cut by about $1.3 billion in the current fiscal year and have had higher health-insurance costs, said Robert Lowry, deputy director of the state Council of School Superintendents.

“It’s pension and health insurance costs. Those two things really put schools behind the eight ball in trying in the last two years to absorb state-aid cuts,” Lowry said.

Pension costs are expected to grow further. In a memo to schools this month, the New York State Teachers’ Retirement System said it expects next year’s costs to exceed this year’s rate. It won’t have those estimates until November…..

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