CalSTRS has conducted an assessment of AB 340, the California
Public Employees’ Pension Reform Act of 2013, and its impact on
CalSTRS members and operations and outlined key changes.
The CalSTRS $70 billion projected funding shortfall can be managed but it will require timely action. The impact of two major financial downturns in less than 10 years resulted in significant losses to the fund that cannot be made up with investment returns alone.
What is needed to fund the existing benefit plan is an increase in contribution rates that can be gradual and predictable.Through Senate Concurrent Resolution 105, a long-term funding plan for CalSTRS is possible; however, the longer it takes to adopt a funding plan, the more the costs and risks to the state General Fund increase.
The Teachers’ Retirement Board is committed to promoting the
development of a comprehensive strategy to address the long-term
funding needs of the system.
Separate fact from fiction, learn how CalSTRS is different from
other public pension systems, and get other critical facts about
CalSTRS and pension funding issues.
Ask Jack is an online communication
channel offered by CalSTRS CEO, Jack Ehnes. This Web forum
solicits questions about the funding and administration of the
CalSTRS Defined Benefit Program. Not all will be posted directly,
but Jack’s responses will be inclusive of views and perspectives.
CalSTRS is dedicated to preventing pension spiking.
A toll-free hotline has been established enabling anyone—the public, CalSTRS members, school district and county office of education employees—to report suspicions of pension spiking to CalSTRS.
Your retirement benefit is based on a formula (Service Credit x
Age Factor x Final Compensation = Member-Only Benefit). How
confident are you in your understanding of how this formula
determines your Member-Only Benefit amount?
