Issue:

Legislative Proposals to Change the CalSTRS Defined Benefit Program

Governor Defers Pension Change Proposal:

• Click here to view the Governor's remarks on his Web site.

Teachers' Retirement Board Action:

• Board Presentation:
  Analysis of Mandatory Defined Contribution Pension Plan for Future Public Educators (PDF - 83 KB)


• Click here to view accompanying slideshow of analysis.


• News releases:
  • Teachers' Retirement Board Formally Opposes Legislation to Replace the Current Pension System
  • CalSTRS Board Opposes New Pension Legislation

Comparison of Plans

• Compare Defined Benefit and Defined Contribution Plans

Information on Pension Issues Proposals:

• Assembly Constitutional Amendment 5
  This link is to Assembly Constitutional Amendment 5, proposed legislation to close Defined Benefit programs for future public employees.
• Assembly Constitutional Amendment 1X
  This link is to Assembly Constitutional Amendment 1X, proposed legislation to close Defined Benefit programs for future public employees.
• Assembly Constitutional Amendment 8X (PDF - 107 KB)
  A proposal to establish the California Public Employee Defined Contribution and Hybrid Plans
• Assembly Constitutional Amendment 3X (PDF - 180 KB)
  This link is to Assembly Constitutional Amendment 3X
• California Legislative Page about ACA 5
  This is the link to California Legislative Page about ACA 5.
• California Legislative Page about ACA 1X
  This is the link to California Legislative Page about ACA 1X.
• California Legislative Page about ACA 23
  This is the link to California Legislative Page about ACA 23.

Related Sites:

• American Legislative Exchange Council
• Howard Jarvis Taxpayers Association
• National Association of State Retirement Administrators
• National Council on Teacher Retirement

Reports and Studies:

• A New Way of Looking at Risk in Defined Benefit Pension Plans
  (PDF - 73 KB)
  This 2000 report, prepared by the TIAA-CREF Institute, argues that "DC plans are in many ways a superior means of providing retirement income security".



• Bringing Pensions Into the 21st Century (PDF - 431 KB)
  This 2003 analysis from the American Legislative Exchange Council outlines features of DC plans that make them attractive to public workers.



• Defined Benefit Plans: Still a Good Solution? (PDF - 147 KB)
  This 2004 report from Mercer Human Resources Consulting looks at the advantages of a defined benefit plan.



• Exploding the Myth That Employees Always Prefer DC Plans
  (PDF - 190 KB)
  This 2004 report from Mercer Human Resources Consulting cites recent studies and surveys to explain employee preferences for pension plans.



• In Defense of the Defined Benefit Plan (PDF - 20 KB)
  This 1997 article, originally published in Government Finance Review, identifies features of a defined benefit plan that may be "overlooked when comparisons (between a DB and a DC) are made".



• List of Advantages and Disadvantages for DB and DC Plans
  (PDF - 90 KB)
  This 2003 document from Gabriel, Roeder, Smith & Company lists pros and cons for both a defined benefit and a defined contribution plan.



• Protecting the Nest Egg: A Primer on Defined Benefit and Defined Contribution Retirement Plans
  (PDF - 125 KB)
  This report from the Council of Institutional Investors seeks to answer whether or not a pension plan adds to the retirement leg of the "three-legged stool."



• Myths and Misperceptions of Defined Benefit and Defined Contribution Plans
  (PDF - 93 KB)
  The National Association of State Retirement Administrators addresses eight myths associated with retirement plans.



• Defined Contribution Plans: A Flexible Retirement Option for Women
  (PDF - 128 KB)
  This paper from the American Legislative Exchange Council analyzes how defined benefit and defined contribution plans affect women.



• Statement in Support of Defined Benefit Plans
  This statement adopted by the Council of Institutional Investors supports defined benefit plans as a component of the nation's retirement system.