Legislative Analyst’s Office Issues Series on CalSTRS Funding Plan
February 5, 2016
The Legislative Analyst’s Office (LAO) published an online series to analyze a 2014 plan to fund teacher pensions. Pensions are an ongoing concern for solvency and unfunded liabilities, but in 2014 the Governor and Legislature came to an agreement regarding the California State Teachers Retirement System (CalSTRS). AB 1469 (2014, Bonta) increased contributions and attempted to set the program on track for sustainability.
The CalSTRS website has additional details about the plan available here.
While CalSTRS covers teachers, there are some potential lessons learned that could be applied to other retirement systems. For example, problems with complexity and clarity in legislative intent present problems in the LAO’s opinion. Stakeholders interested in pension issues may wish to explore this series for its potential parallels to other pension challenges and opportunities.