By James Poulos | Cal Watchdog
The California State Teachers’ Retirement System just announced it faces $73.7 billion in long-term liabilities. Left untouched, that would spell bankruptcy in 2043.
For critics of California’s public-employee pensions programs, the grim numbers heighten the urgency for reform. If CalSTRS wants to address its shortfall, it has to get legislative approval.
CalSTRS is the product of a contract with the state of California. Most experts say its funding is guaranteed by the California Constitution. So the state government is responsible for ensuring that CalSTRS remains solvent. CalSTRS CEO Jack Ehnes has admitted that it’s essential to raise rates, shifting pressure to the Legislature.
at Cal Watchdog.