Addressing the Unfunded Actuarial Obligation
December 7, 2006
Description: This item provides the specific statutory language to execute a strategy for addressing the UAO.
Ensuing Board Action: The board decided to defer submission of any legislation until all issues could be thoroughly discussed and resolved. The board requested that the legislature and various constituency groups be educated regarding the UAO before going forward.
Strategic Packages for Addressing Unfunded Actuarial Obligation
September 8, 2006
Description: This item enables the board to adopt a strategy to address the UAO.
Ensuing Board Action: The board directed staff to draft specific statutory language to execute a strategy for addressing the UAO.
Strategic Packages for Addressing Unfunded Actuarial Obligation
April 7, 2006
Description: This item identifies current efforts and presents four possible strategic packages to address the UAO.
Ensuing Board Action: The board directed staff to remove from the modeling scenarios the option to eliminate the 2 percent annual benefit adjustment.
Strategic Directions for Addressing Unfunded Actuarial Obligations
February 3, 2006
Description: This item provides follow-up information from the December 2005 item on available options to address the UAO.
Ensuing Board Action: The board directed staff to prepare a complete matrix of funding options that would be prioritized by each board member and returned to staff for the purpose of compiling scenarios to be considered at the next meeting.
Strategic Directions for Addressing Unfunded Actuarial Obligations
December 8, 2005
Description: This item provides information on the UAO and provides options to address it.
Ensuing Board Action: The board directed staff to provide additional information on the feasibility of issuing pension obligation bonds, expanding the amortization period, increasing contributions, and the increased contribution required from the state to reach fully funded status if amortized over 17 years with an assumed investment rate of 7 percent. The Board also requested that staff seek public input on changes to the structure of the plan.
Unfunded Actuarial Obligation (Board Education)
December 6, 2005
Description: This educational item provides an overview of the UAO. The item includes a public fund survey from the National Association of State Retirement Administrators.
Ensuing Board Action: none
Implications for Defined Benefit Plan Changes (Annual Plans)
July 14, 2005
Description: This item describes proposals to address the UAO adopted by other retirement systems and the potential impact they might have if applied to CalSTRS benefits programs.
Ensuing Board Action: none
- Options to Address Defined Benefit Funding Status
December 2, 2004
Description: This item identifies the options available to address the UAO.
Ensuing Board Action: The board requested an in-depth report on the DBS program, information on the demographic study, and an analysis of the target funding status. The board also asked staff to research:
- How the reduction of benefits would affect the retention and recruitment of teachers
- The legal constraints of increasing the amortization of the UAO to 40 years
- Pension obligation bonds
