California Teacher Pension Shortfall Rises To $65 Billion
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SACRAMENTO, Calif. (AP) — The California State Teachers Retirement System says its unfunded liability has risen to $64.5 billion, an increase of $8.5 billion from a year ago.
Ed Derman, CalSTRS’ deputy chief executive, said Tuesday that is the amount the fund would need from the state Legislature, school districts or other sources to pay the current and future benefits owed over a 30-year period.
It adds up to about 14 percent of the annual wages of the plan’s 440,000 school employees.
The shortfall is partly a reflection of massive losses at the height of the stock market collapse.
CalSTRS manages a $130 billion pension fund for current teachers and 167,000 retirees, down from about $172 billion in 2007. As of June 30, CalSTRS was about 69 percent funded.
(Copyright 2012 by The Associated Press. All Rights Reserved.)