California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes issued the following statement in response to the Legislature’s approval of Assembly Bill 1469, which provide a long-term funding plan for CalSTRS:
“CalSTRS commends the Legislature for upholding its intent to enact a funding plan this year, as evidenced in the passage of AB 1469. The long-term funding solution set out in this historic legislation sets the Defined Benefit Program on a sustainable course, and ensures a secure retirement for future generations of CalSTRS members. The plan offers a reasonable and responsible framework needed to uphold the state’s promise to California’s educators and protect the state’s General Fund.
“The funding solution presented in this legislation is the result of years of focused discussions, stakeholder outreach, legislative visits and hearings. Since the release of Senate Concurrent Resolution 105 in 2012, significant ground towards enactment of a plan has been gained. Earlier this year the Governor made funding for CalSTRS a priority by fostering an environment conducive to swift legislative action. The Legislature’s action this weekend brings the culmination of those efforts within reach.
“All along CalSTRS has said that the funding shortfall can be managed but it will require increased contributions, which can be gradual, predictable and fair to all parties involved. This legislation demonstrates California’s commitment to a sound retirement system for the state’s educators. We look forward to enactment of this legislation.”
The California State Teachers’ Retirement System, with a portfolio valued at $183.8 billion as of April 30, 2014, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California’s 868,000 public school educators and their families from the state’s 1,600 school districts, county offices of education and community college districts.
Source: Digital Journal