General Information

Comprehensive Funding Strategy – Teachers’ Retirement Board Addresses Funding Gap

Board Meeting Agendas

  • Funding Strategy – Pension Changes at Other Plans
    April 8, 2011

    Description: This item provides information requested by the board during its October 2010 offsite meeting regarding pension reform in other systems.
    Ensuing Board Action: The board discussed the need to continue communication with the legislature and governor regarding legislation and funding that may affect CalSTRS, and possibly providing more educational information on CalSTRS and the potential impact to the system by proposed pension reform.

  • Evaluation and Adoption of Actuarial Assumptions
    December 2, 2010

    Description: This item provides an evaluation of existing assumptions and recommends the board lower the DB and DBS investment assumptions to 7.5 percent and 7 percent, respectively, the wage inflation assumption to 4 percent and the price inflation assumption to 3 percent.
    Ensuing Board Action: The board adopted investment assumptions of 7.75 percent (DB) and 7.25 percent (DBS), a wage inflation assumption of 4 percent and a price inflation assumption of 3 percent.

  • Funding Issue: Legal Framework
    September 3, 2010

    Description: This item provides the legal parameters to consider when addressing the UAO.
    Ensuing Board Action: none

  • Executing the Funding Strategy (Revised)
    February 5, 2010

    Description: This item provides an update on the efforts to execute the strategic plan to address the UAO.
    Ensuing Board Action: The board requested information on the legal security of teachers’ retirement benefits at the various stages of a teacher’s career, particularly during retirement.

  • Addressing the Defined Benefit Funding Status
    June 5, 2009

    Description: This item provides an update on implementation of the strategic plan to address the UAO, the potential impact of the market downturn to the UAO and opens discussion about the assumed investment rate. Ensuing Board Action: The board designated three board members (who are also active CalSTRS members) to participate with staff in discussions with stakeholder organizations.

  • Addressing the Unfunded Actuarial Obligation
    December 7, 2006

    Description: This item provides the specific statutory language to execute a strategy for addressing the UAO.
    Ensuing Board Action: The board decided to defer submission of any legislation until all issues could be thoroughly discussed and resolved. The board requested that the legislature and various constituency groups be educated regarding the UAO before going forward.

  • Strategic Packages for Addressing Unfunded Actuarial Obligation
    September 8, 2006

    Description: This item enables the board to adopt a strategy to address the UAO.
    Ensuing Board Action: The board directed staff to draft specific statutory language to execute a strategy for addressing the UAO.

  • Strategic Packages for Addressing Unfunded Actuarial Obligation
    April 7, 2006

    Description: This item identifies current efforts and presents four possible strategic packages to address the UAO.
    Ensuing Board Action: The board directed staff to remove from the modeling scenarios the option to eliminate the 2 percent annual benefit adjustment.

  • Strategic Directions for Addressing Unfunded Actuarial Obligations
    February 3, 2006

    Description: This item provides follow-up information from the December 2005 item on available options to address the UAO.
    Ensuing Board Action: The board directed staff to prepare a complete matrix of funding options that would be prioritized by each board member and returned to staff for the purpose of compiling scenarios to be considered at the next meeting.

  • Strategic Directions for Addressing Unfunded Actuarial Obligations
    December 8, 2005

    Description: This item provides information on the UAO and provides options to address it.
    Ensuing Board Action: The board directed staff to provide additional information on the feasibility of issuing pension obligation bonds, expanding the amortization period, increasing contributions, and the increased contribution required from the state to reach fully funded status if amortized over 17 years with an assumed investment rate of 7 percent. The Board also requested that staff seek public input on changes to the structure of the plan.

  • Unfunded Actuarial Obligation (Board Education)
    December 6, 2005

    Description: This educational item provides an overview of the UAO. The item includes a public fund survey from the National Association of State Retirement Administrators.
    Ensuing Board Action: none

  • Implications for Defined Benefit Plan Changes (Annual Plans)
    July 14, 2005

    Description: This item describes proposals to address the UAO adopted by other retirement systems and the potential impact they might have if applied to CalSTRS benefits programs.
    Ensuing Board Action: none

  • Options to Address Defined Benefit Funding Status
    December 2, 2004

    Description: This item identifies the options available to address the UAO.
    Ensuing Board Action: The board requested an in-depth report on the DBS program, information on the demographic study, and an analysis of the target funding status. The board also asked staff to research:

    1. How the reduction of benefits would affect the retention and recruitment of teachers
    2. The legal constraints of increasing the amortization of the UAO to 40 years
    3. Pension obligation bonds

 

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