Urgent! Legislative Coordinators: Keep Contacting Lawmakers to Protect Pension Funds
Your ongoing efforts are helping CTA protect the purchasing power guarantee for retirees in the California Teachers’ Retirement System (CalSTRS). A key vote is coming up next week, and your efforts will make the difference.
On Thursday, May 17th, Subcommittee Number 4 of the Assembly Budget Committee is scheduled to take up a proposed provision of the governor’s budget that would reduce funding to the Supplemental Benefit Maintenance Account (SBMA). The SBMA makes separate payments to our oldest and neediest retired teachers. These payments are used to help guarantee that the pensions of CalSTRS retirees will be maintained at least 80% of their original value.
The Schwarzenegger administration has proposed to permanently reduce the contribution to the SBMA by $78 million annually. While the state’s reduction of the funds won’t immediately put the pension purchasing power guarantee in jeopardy, the holdback will make it difficult -- if not impossible -- to boost the guarantee floor above the current 80% level.
CTA is aiming to kill the Governor’s unfair proposal and continue the state contribution to the SBMA.
Background:
Over the years, inflation has eroded the value of the pensions of dedicated retirees who spent their professional lives helping California’s students succeed. To help retirees most harmed by inflation, CTA spearheaded measures that implemented a purchasing power guarantee and boosted it to the current 80% of original value.
The average retired teacher receiving SBMA payments is 83 years old. Nearly 65% are female. On average, SBMA payments are between $250 and $300 per month.
Key Points:
The state‘s annual funding for the Supplemental Benefit Maintenance Account (SBMA) is vital to providing future funding to protect CalSTRS retirees against the ravages of inflation.
To attract and retain all the highly qualified instructional personnel California needs, the state must honor its commitment to provide a stable and equitable retirement for all retirees.
Not continuing state contributions to the SBMA will most directly harm a group of elderly, dedicated female retired teachers whose ability to buy food, prescription drugs, and other necessities will be jeopardized. They would benefit most from any future boosts in the guarantee above the current 80%.
In future years, all current and future retirees will benefit from an increase in the purchasing power guarantee.
Coordinators:
Mobilize CTA members and other education supporters to contact the members of this Assembly Budget Subcommittee: Assembly Members Juan Arambula (D-Fresno), Paul Cook (R-Yucaipa), Chuck DeVore (R-Irvine), Mary Hayashi (D-Hayward), Gene Mullin (D-Santa Clara), and Sandre Swanson (D-Oakland). Urge them to vote for a budget provision that keeps the state honoring its promise to provide ongoing funding to the Supplemental Benefit Maintenance Account (SBMA).
The link below will take you to the Legislative Action Center, where you can send faxes and e-mails directly to these officials.
Contact your Lawmaker
For more information, contact CTA Legislative Advocates Lori Easterling or GR Communications Consultant Len Feldman at 916.325.1500.