In a news conference today, Speaker John Pérez (D-Los Angeles) and Assembly member Rob Bonta (D-Oakland) outlined their plan to begin to address the CalSTRS $71 billion funding shortfall. The legislators said all options are on the table except the "ostrich" option of pretending a problem doesn't exist.
The lawmakers also noted that while CalSTRS achieved double-digit returns on investments this year, rising yields alone will not resolve the problem. Speaker Perez and Assembly member Bonta said they will schedule hearings beginning Feb. 16. These hearings along with stakeholder meetings will help determine the exact size of the problem and the solutions, which would include increases in contributions from school districts, individual teachers, and the state. The lawmakers said educators have a right to a secure pension system.
The Speaker emphasized the state would not renege on its commitment to educators by walking away from its responsibility to help fund the solution, and said he is interested in seeing a solution that begins this year.
CTA believes teachers have modest retirement benefits and that is why all parties have to work together to craft an ongoing, stable solution that will not harm education and make it more difficult to attract and retain quality educators.
Check out our Retirement section.