Search
 

California teachers' pension straining state budget

A state auditor's reprot found that the major reasons that the CalSTRS fund is in trouble include the boards inability to set employee contribution rates and poor investments returns caused by the Great Recession.

By Dan Berman | Updated on September 27, 2013

The funding liabilities of the California State Teachers Retirement System, coupled with the cost of retiree health benefits, is putting the state’s budget at high risk, according to a report from the state auditor.

From 2001 through the end of fiscal 2012, the report said the proportion of future liabilities that are funded by CalSTRS – the nation’s largest public teachers’ retirement system with more than 860,000 members and benefits recipients – fell from 98 percent to 67 percent. That is far below the recommendation of the Government Accountability Office, which believes that such liabilities should be funded at 80 percent.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.