Will any of the Governor’s proposed pension reforms have an impact on CalSTRS members who are already retired?
Although we are still analyzing all of the potential implications of the Governor’s pension reform proposal, two provisions – the prohibition of retroactive pension increases and the limitation of post-retirement employment – may apply to retired members if adopted as they are currently written.
However, the ban of any benefits increases provided on a retroactive basis would apply to future benefit increases and does not seek to undo retroactive increases already provided. It is important for our members to understand that this is only a proposal and it will be discussed further in the Legislature in the coming months.
We appreciate Governor Brown’s focus, as it’s going to take strong leadership from him and the Legislature to develop a plan to address the CalSTRS $56 billion unfunded liability, as the Governor and Legislature have the sole authority to set the funds’ contribution levels.