Teachers’ pension fund gap getting bigger
By Dale Kasler, Sacramento Bee
CalSTRS said Thursday that its long-term funding shortfall has risen to $73.7 billion, a stark reminder of the financial issues facing the teachers’ pension fund.
The newest tally reflects CalSTRS’ financial condition as of last June 30. The pension fund said the shortfall grew by $2.7 billion in the 12 months since the previous valuation of June 30, 2012.
CalSTRS’ latest calculation comes as the Legislature and Gov. Jerry Brown continue to debate how to fix the teachers’ retirement fund. Brown originally said the Legislature could enact a funding plan for CalSTRS in 2015, but he also supported the decision by Senate and Assembly committees to hold hearings last month on the issue.
Teachers learning arithmetic priceless.
“Although CalSTRS has enough cash to deal with its obligations for the foreseeable future, it is only 66.9 percent funded for the long term. The pension fund said its shortfall grows by $15 million a day. If the problem isn’t corrected, CalSTRS said it expects to run out of cash by 2046. That’s actually three years later than the last time CalSTRS issued a prediction, but the pension fund said the problem can’t wait much longer.”
Was this always a flawed system, or did inept or crooked people mess it up? or a bit of both?
This is a fund for all those bright/intelligent people, who are teaching our youngsters. What? They can’t even manage their own checkbook.
And why hasn’t their fund recovered from 2008? All the media reports state all of our 401’s have recovered and more ! And now they want the state of California, you and me tax payer, to bail them out, when we already paid them once and they mismanaged it.
I guess daddy’s pocket is never empty !