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Administration April 10, 2012
CalSTRS Unfunded Liability Climbs in 2011
April 10, 2012 (PLANSPONSOR.com) - The California State Teachers' Retirement System (CalSTRS) said the gap between its assets and projected obligations rose $8.5 billion, as investment gains failed to cover previous losses.
Reported by Tara Cantore
The system’s unfunded liability climbed 13% to $65.5 billion as of June 30, according to a report from actuaries, Bloomberg reports. It had approximately 69% of assets needed to cover promises to current and future retirees at the end of fiscal 2011, down from approximately 71% a year earlier.
“The projected revenue shortfall is due primarily to investment return experience averaging 5.5% per year over the last decade that was significantly less than the long-term actuarial assumption of 7.5%,” Milliman Inc. consultants said in the report.
The study will be formally presented to the CalSTRS board members on April 12, Bloomberg said.