March 16, 2011 - Editorial: CalSTRS needs to be candid with teachers (San Diego Union-Tribune)
CalSTRS’ [California State Teachers’ Retirement System] own actuaries say that to put pension reserves on solid ground, total payments made by teachers, school districts and the state need to be increased by a staggering 77 percent.From Wikipedia: CalSTRS provides retirement, disability and survivor benefits for California's 847,833 prekindergarten through community college educators and their families
Why pension funds consistently overstate their expected their rate of return on investments.
Calpers Committee Holds Assumed Return Rate at 7.75% (Wall Street Journal, Mar 16, 2010)
Money Quote: "Pension plans considering the adoption of a more-conservative annual rate of return are faced with having to shift a greater financial burden on to public employers, since typically contributions from employees legally can't be changed."
Bottom line: Not gonna happen in this economic climate.
EXCELLENT RESOURCE: Pension Tsunami, a Project of the California Public Policy Center and their,
EXCELLENT DATABASE: CalSTRS $100,000 Pension Club database
Obtained through Freedom of Information requests.
You don't need to know the employee name. Select either the employer or the community.
TIP: Be sure to look lower right for monthly totals and yearly totals for the employer or city.
TIP: Check out the CalPERS and UC databases as well.
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