Teachers and School Districts Agree More Pension Funding Needed



Share | |
(Sacramento, CA)
Wednesday, February 19, 2014
Today representatives of teachers' associations, school districts, and the state teachers' pension plan spoke at a State Assembly hearing to support reducing the  pension's $71 billion unfunded amount.

Jack Ehnes with the California State Teachers' Retirement System or CalSTRS says if the retirement system is to be fully-funded within 30 years, all of the groups and the State of California must increase contributions by more than $4 billion-per-year.

"Recessions took such a sizeable bite out of the assets of the system or any system like that, you must increase the contributions and usually quickly to change that path."
Jennifer Baker with the California Teacher's Association says membership will support a fair solution that includes the State of California increasing its contribution after years of falling short.

"Having a secure retirement is of paramount value along with the piece of mind it will bring to our current and future members and retirees," Baker says. 
   
Baker and a representative of the California School Administrators spoke at the  first in a series of Assembly hearings at the California State Capitol Wednesday.

Based on the current value of the fund's assets, Governor Jerry Brown says the shortfall is actually $80 billion.

Together, employers, employees, and state contributions make up about 40-percent of the Cal STRS pension fund. Investments make up the rest.

Cal STRS will develop funding scenarios for all contributors to add $4.2 billion to the fund this year with an increase every year after that.
Today's hearing at the Capitol was the first in a series. The next one could be held within a few weeks.
 
 
 
 
Unfunded Liability - According to CalSTRS | Create Infographics
 
 

Related Stories

  • Katie Orr, Capital Public Radio

    Brown Lauds California Community Colleges

    Monday, May 18, 2015

    Not everyone is happy with the revised budget proposed by California Governor Jerry Brown. But he does have the approval of the Community College system. Brown attended the Community College Board of Governors meeting today.

  • Jijithecat / Wikipedia

    Google Embeds Engineers As Professors

    Monday, May 04, 2015

    (AP) - In ongoing efforts to diversify Silicon Valley's tech sector, Google is embedding engineers at a handful of Historically Black Colleges and Universities where they teach, mentor and advise on curriculum.

We Get Support From:
Become a Supporter

We Get Support From:

Become a Supporter