Teachers’ pension system returns lag behind projections
By Dale Kasler, Sacramento Bee
CalSTRS is thinking of cutting its investment forecast for the second time in barely a year, a move that will reflect the increase strain on the pension fund.
The teachers’ pension system on Thursday will consider a recommendation from its actuarial consultant to cut the forecast by a quarter point, to 7.5 percent. The consultant, Milliman Inc., said the current rate of 7.75 percent “is greater than the expected long-term return.”
Lowering the forecast means could intensify the pressure on the Legislature and Gov. Jerry Brown to come up with a funding solution for CalSTRS. The retirement system is underfunded by tens of billions of dollars; lowering the forecast will increase the gap by another $5.9 billion, according to Milliman’s memo to the CalSTRS board.
readjust their pension payout on the fly, tie it to the market, rather than having taxpayers hammered again.
through the government pension/ retirement system and government lies about it America has been brought down. The liberal government has stollen the future from generations of Americans.
The education system shoulld be recognized for it’s part in the anti business, social indoctrination agenda.
All America is affected. California among the worst of it.
From here it gets worse.
Typing this on a cell phone. Sorry for spelling. Just chill. Focus on what’s important. Your childrens futures! Government stole them.
What disturbs me the most about government retirement and pension systems is that, when the general public loses money on their savings, there are few safety nets, no guarantees and no solutions. For completely unknown reasons, the government workers always seem to have guaranteed jobs, guaranteed savings, guaranteed benefits, etc. And the guarantees are all paid for by the taxpayer, why would this be reasonable or fair? Government deserves the scorn and anger from taxpayers for this system. Obviously, something needs to change.
Go to a school, sit in a class and see what happens. Then ask yourself, would you do this job for less pay than your public sector counterparts without some balancing factor such as benefits and a secure retirement plan?
It is easy to blame Teachers for their retirement system without seeing it for what it is, a negotiated contract. The blame goes to those that agreed to these retirement systems with no foresight for lean times and not the teachers themselves. The Unions did their job while those on the other side of the table did not.
My hat is off to those that become teachers. I don’t know that I could do it and appreciate that the only incentive to teachers are the opportunity to teach kids and to have stable benefits and retirement plans.
Place your blame in the right place… The politicians who sold out to a lobby and created an unsustainable system. At the same time realize that if you get rid of a stable retirement and good benefits we will likely have a tough time finding teachers.
-LocalYokle