Statement Ricardo Duran

CalSTRS Submits SCR 105 Report on System Funding to the Legislature
Sustaining Retirement Security for Future Generations: Funding the California State Teachers’ Retirement System

“On February 14, 2013, CalSTRS submitted its report of possible funding strategies, Sustaining Retirement Security for Future Generations: Funding the California State Teachers’ Retirement System, to the Legislature as requested by Senate Concurrent Resolution 105 (Negrete McLeod). The report doesn’t contain any single funding approach endorsed by the Teachers Retirement Board. However, from the board’s perspective as fiduciaries, the definitive approach to address the funding shortfall fully funds the Defined Benefit Program within a 30-year timeframe. This approach upholds consistency with accounting and actuarial standards. The board recognizes, however, that the Legislature and Governor may elect a different approach. As a result, the report provides an analysis of the issues the Legislature and Governor needs to consider to develop a sustainable funding strategy that secures the long-term funding needs of the Defined Benefit Program as directed in the resolution.”

“The report, developed with input from affected stakeholders, also identifies funding options and illustrates the implications of gradual, incremental contribution increases necessary to close the $64 billion funding gap and secure the long-term needs of the fund. CalSTRS stands ready to assist the Legislature and the Governor to help them enact a viable funding strategy in the 2013-14 legislative session, as intended in the resolution.”

Jack Ehnes
CalSTRS
Chief Executive Officer

Commands