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.
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.
Electronic privacy is crucial for the ongoing success of the
Internet as a convenient means to provide customer service. Your
personal information will be used only to conduct CalSTRS-related
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?