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Administration February 2, 2012
Report Finds CalSTRS Could be Fully Funded by 2064
February 2, 2012 (PLANSPONSOR.com) – The California State
Teachers’ Retirement System (CalSTRS) may be fully funded 52 years from now, a recent
report shows.
Reported by Tara Cantore
According to news reports, CalSTRS only had 71% of what it needed to cover forecast benefits as of June 30, 2010, down from 78% a year earlier. The shortfall amounts to $56 billion.
The report found that the fund would be 100% fully funded by 2064 if new teachers were required to put 12.2% of their salaries toward retirement, up from the 8%, they currently provide. If the new program was adapted, it would be phased in beginning in 2016. Current teachers would contribute 10%; school districts, 14.5% of payroll, from 8.25%; and the state, 3.1% of its budget for teacher payroll, now at 2%.
The report also outlines six scenarios that would spread the added costs among school districts, educators and the state. Each would require instructors to pay more. Only one scenario would impose additional costs on new teachers. All six scenarios would squeeze more from school districts to varying degrees, and four would require additional money from the state.
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