CalSTRS Outlook

Making Sense of the Headlines
Volume 5, No. 2

CalSTRS Outlook is an email summary of the latest news releases and other items of interest related to CalSTRS benefits and services.

Blog entry Jack Ehnes

Recent Developments Suggest a Funding Plan is Within Reach

Several developments suggest a funding plan for CalSTRS is a top priority for the Governor and Legislature this year. In addition to Governor Brown’s call for development of a funding plan in his budget proposal, the Legislature has begun the process of crafting a permanent funding solution for the Defined Benefit Program. As this process takes shape many significant issues will be examined. The importance of staying focused on funding issues relevant to CalSTRS is paramount.

Ask Jack Jack Ehnes

Why does Governor Brown say CalSTRS’ unfunded liability is $80.4 billion and CalSTRS say it is $71 billion – which is correct?

Both the $71 billion and $80.4 billion CalSTRS unfunded liability values are accurate, as reported in the June 30, 2012 valuation report. The $80.4 billion, referenced in the Governor’s 2014-15 Budget Proposal, represents the difference between the market value of assets and actuarial liabilities as of June 30, 2012. The $71 billion value of the unfunded liability cited by CalSTRS represents the difference between the actuarial value of assets and actuarial liabilities as of June 30, 2012. Both could be used to determine the cost of addressing the funding shortfall as either figure would result in the same required increase in contributions.

News release Ricardo Duran

Governor Announces Appointment to the CalSTRS Board
Joy Higa of Manhattan Beach named to the 12-member board

WEST SACRAMENTO, Calif. – Governor Brown announced today the appointment of Joy Higa to the Teachers’ Retirement Board, which oversees the retirement benefits for California’s K-12 and community college educators covered under the California State Teachers’ Retirement System (CalSTRS).