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.
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