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The unfunded liability of the CalStrs pension fund, teachers’ retirement, has gone done a tiny bit.
"The $130-billion California State Teachers' Retirement System posted a 12.3% return Monday for the fiscal year that ended June 30, a step toward recovering from steep losses during the recession. The CalSTRS portfolio lost 25% of its value in its previous fiscal year and dropped 3% for the 2008 fiscal year."
Regardless, it is still in trouble. "But critics noted that surpassing the target for one year doesn't translate into success every year. The CalSTRS board is considering lowering the target rate to 7.5%.
The lower assumed rate would make it more difficult to deal with a $43-billion shortfall that was projected a year ago, when the retirement system's assets amounted to only 77% of its future pension payouts. Experts have set 80% of total obligations as a minimum amount required for a more financially sound system."
Who makes up the difference? You, the taxpayer--now you know why California is in trouble.
Get angry or get poor.
More...
"The $130-billion California State Teachers' Retirement System posted a 12.3% return Monday for the fiscal year that ended June 30, a step toward recovering from steep losses during the recession. The CalSTRS portfolio lost 25% of its value in its previous fiscal year and dropped 3% for the 2008 fiscal year."
Regardless, it is still in trouble. "But critics noted that surpassing the target for one year doesn't translate into success every year. The CalSTRS board is considering lowering the target rate to 7.5%.
The lower assumed rate would make it more difficult to deal with a $43-billion shortfall that was projected a year ago, when the retirement system's assets amounted to only 77% of its future pension payouts. Experts have set 80% of total obligations as a minimum amount required for a more financially sound system."
Who makes up the difference? You, the taxpayer--now you know why California is in trouble.
Get angry or get poor.
More...