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CTA strongly opposes AB 340, as amended, which would significantly alter the retirement structure and benefits to public pensions in California, including the California State Teachers Retirement System.

We are disappointed by the lack of transparency shown in this process. Over the past year, CTA and other labor unions participated in good faith in pension reform discussions that would have led to substantive pension reform. Yet, the governor instead unveiled a plan that had not been openly discussed. Some important changes for newly hired educators in California schools:

1. Almost all changes apply solely to NEW CalSTRS members – those hired after January 1, 2013.

2. All new CalSTRS members would be required to pay half of the normal cost of their retirement. The language is very unclear on the impact this would have for local school districts and school funding under Proposition 98.

3. The proposal changes the formula for determining retirement benefits from 2% at age 60 to 2% at age 62, and from 2.4% at age 63 to 2.4% at age 65.

4. It eliminates the ability of teachers with more than 25 years of service to use their single highest year salary when calculating retirement benefits. All future teachers would be required to use their three highest years of salary.

These changes and others in the Governor’s plan would undermine the state’s ability to recruit and retain teachers, firefighters, police officers, and other key employees. CTA has sent a letter of opposition to the Legislature, urging lawmakers to vote against the bill containing the governor’s proposal, AB 340.

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Educators do not retire into a life of luxury. They spend their lives dedicated to public service, often forgoing higher salaries offered in the private sector. They have earned and deserve the modest pensions they were promised. Below are just a few examples of other ways CTA is speaking out on behalf of our members and trying to dispel the misinformation about their pensions.

Read Californians for Retirement Security's key points with the latest CalSTRS figures.

Read CTA's formal letter of opposition to the Little Hoover Commission's misleading report: Public Pensions for Retirement Security.

Read CalSTRS response to the flawed LAO webcast Public Retirement Benefits and Options for the Future.

Read the Californians for Health Care and Retirement Security's statement on news reports about the CalSTRS shortfall.

Download our easy-to-understand summary of teachers' retirement: Printable PDF | Color Brochure

Read the speech by Maggie Ellis, Chair of the CTA Retirement Committee given to the State Council of Education.

Review the State Council Briefing:
Download the presentation [PPT]
Watch the 5-part video series [I] [II] [III] [IV] [V]