Ask Jack Jack Ehnes

Are reports that suggest the state needs to increase CalSTRS annual funding by $3.8 billion for the next 30 years accurate?

Recent media reports have suggested that to solve the unfunded liability the state will have to increase CalSTRS funding by $3.8 billion a year for 30 years for a total of more than $114 billion.

Although this is an accurate statement based on current projections, achieving adequate funding can occur several ways that would be phased in over time. The CalSTRS $56 billion funding shortfall can be managed, but it will require gradual and predictable increases in contributions.

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