New government accounting rules will more than double the pension debt reported by CalSTRS, boosting an “unfunded liability” that is now about $71 billion to a newly calculated “Net Pension Liability” of $166.9 billion.
If not for pension and benefit increases as the stock market boomed more than a decade ago, CalSTRS would be one of the nation’s best-funded large retirement systems with 88 percent of the assets needed to pay promised pensions.
Instead, an annual report said last week, the CalSTRS funding level dropped from 69 percent
The nonpartisan Legislative Analyst’s Office yesterday recommended that the Legislature adopt a plan to fully fund CalSTRS in 30 years — an estimated cost of $4.5 billion a year, a hefty addition to current annual contributions totaling $5.7 billion.
That’s not likely to happen as the state, with a budget back in the black
A nationwide study, including CalPERS and CalSTRS, projects that huge pension fund losses during the financial crisis will be offset over three decades by a wave of recently enacted cost-cutting reforms — but only if several things happen.
–Pension fund earnings forecasts must hit their target. Critics say the forecasts, 7.5 percent a year
Some still have hard feelings about what happened when CalSTRS, now deep in the red, had a brief funding surplus more than a decade ago: Teacher and state payments into the fund were cut, and retirement benefits were raised.
At a CalSTRS board meeting last week, Lois Shive, a representative of a retiree group,
A new report says CalSTRS needs $4.5 billion more a year to fully fund pensions over the next three decades, a 75 percent increase in the $6 billion total annual payments now being made by teachers, school districts and the state.
There is no cheap fix in the report. A final draft, scheduled to
The nation’s second largest public pension fund, reacting to a mass school shooting in Connecticut last month, is taking a new look at the “social” impact of its $150 billion investment portfolio.
The California State Teachers Retirement System found that it owned stock, apparently in violation of its own policy, in the maker of
More money for the underfunded California State Teachers Retirement System may be considered by the Legislature next year, thanks to new attention from lawmakers and a state budget deficit narrowed by a voter-approved tax increase this month.
After years of ignoring pleas for a rate hike, the Legislature approved a resolution last August, SCR