CA High Court Declines Review of CalSTRS Interest Award

November 16, 2007 (PLANSPONSOR.COM) - The California Supreme Court has turned away a request to review a lower court ruling giving the California State Teachers' Retirement System (CalSTRS) $200 million in interest on $500 million withheld by the state in 2003-2004.

A CalSTRS news release said the state paid it the $500 million in September 2007 but had asked the Golden State’s high court to consider the decision of the Third District Court of Appeals awarding the interest payment (See  Court Hands CalSTRS Victory in $500M Funding Battle ).

Justices denied the review  request on Wednesday.

The CalSTRS announcement said the funds support its inflation-protection program, the Supplemental Benefit Maintenance Account (SBMA). The SBMA funds quarterly payments to about 63,000 retired educators and their survivors when inflation erodes their monthly benefits below 80% of their original consumer purchasing power.

A legislative appropriation will be required pay the interest, according to the news release.