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Reform by the ounce, unfunded pension debt by the pound
The pension reforms passed in June, paring back the benefits for new teachers and administrators, will knock off $189 million per year from the additional payments taxpayers must make to keep the California State Teachers’ Retirement System solvent over the next 30 years. That’s the good news. The bad news is that this represents only about 6 percent of the extra $3.25 billion annually that CalSTRS actuaries are saying is needed to erase the system’s current … Read entire article »
Filed under: Featured, Reporting & Analysis, Revenue and taxes, Teacher Pensions
CalSTRS estimates $22.7 billion savings from pension reform
The pension reforms that the Legislature passed before skipping town on Friday will save the California State Teachers’ Retirement System $22.7 billion over 30 years, according to a preliminary analysis that CalSTRS released on Wednesday. But CalSTRS administrators cautioned that most of the savings won’t be achieved for decades, because reduced pension benefits will affect only employees hired after Jan. 1, 2013. And the savings won’t reduce the Legislature’s need to deal with the current $65 billion deficit, caused when returns on investments tanked in 2008 and failed to fully recover. “We have been working for some time to raise awareness of our funding shortfall, the cost of waiting to address it, and the ultimate risk failing to do so presents to the state General Fund,” said CalSTRS Chief Executive Officer Jack … Read entire article »
Filed under: Featured, Quick Hits, Teacher Pensions
Pension reform: top-paid administrators to take biggest hit
The retirement age for new teachers will be pushed back two years; they’ll have to fork over about another 1 percent of their pay into the retirement system. And their bosses – principals and administrators – will see a ceiling of $132,120 as the portion of their pay used to calculate retirement pay. Those in the highest-paid jobs, earning $200,000 plus, may see pensions reduced by tens of thousands of dollars. These are the primary changes … Read entire article »
Filed under: Featured, Reporting & Analysis, Teacher Pensions, Teacher Unions
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