Assembly Democrats push to shore up teachers’ retirement fund

Sacramento Bee ^ | Jan. 29, 2014 | Jeremy B. White

[artichokegrower]

With California facing a massive teacher pension shortfall, Assembly Speaker John A. Pérez, D-Los Angeles, unveiled an effort Wednesday he hopes would fully fund the system.

An influx of revenue has allowed California to emerge from years of yawning deficits and protracted budget fights, and the pressure is mounting for the state to do something about an avalanche of liabilities that runs into the hundreds of billions.

[artichokegrower]

“Really, what that boils down to is increases in contributions from the state and school districts, as well as teachers.”

Contributions from the state = taxpayers

Contributions from the school districts = taxpayers

Don't like the looks of this.

[scooby321]

replace 1,000,000 working taxpayers with illegals , kids and other non tax paying people in the last decade you might have bills coming you can’t pay.

[telstar12.5]

doesn’t take ‘em long to try and spend that tiny budget surplus Jerry Brown touted as “saving for a rainy day”

(especially on one of their favorite union pals)

[txrefugee]

It won’t be long before they shake that empty purse and two skinny moths will vacate, because there are nothing but holes left.

[Michael.SF.]

Yet they have money for the 65 Billion (and counting) Fast Train to nowhere:

[VRW Conspirator]

It won’t be long before they shake that empty purse and two skinny moths will vacate, because there are nothing but holes left.

LOL. I like the visual.

My name is William T. Pension, "Bill" to all my friends. And, California, I am the "Bill" you owe.

[stocksthatgoup]

It is not hundreds of millions it is Billions. San Diego Jan 2014 For nearly a decade, actuaries have warned that the massive California State Teachers’ Retirement System is on an unsustainable course because it has far less funding than necessary to pay promised pension benefits. Watchdog agencies have without success urged the Legislature and first Gov. Arnold Schwarzenegger and now Gov. Jerry Brown to do something about it. Because of unexpected, multibillion-dollar gains in state revenue, 2014 is the best opportunity in many years for state leaders to take constructive action to reduce CalSTRS’ $170 billion funding gap. Unlike most local government agencies, school districts don’t have any say over pension benefits or contributions, which are set by state law. To fund pension benefits, teachers contribute 8 percent of pay, school districts 8.25 percent of pay and the state about 5.2 percent of pay. But that amount isn’t nearly enough to cover the pension tab going forward. A March 2013 report from the Legislative Analyst’s Office said the present formula generates some $5.7 billion a year for pension costs when $10.2 billion is what’s needed. The LAO said this additional $4.5 billion per year should continue for three decades.

[stubernx98]

Oh, they can do what they did in Oregon. Deduct the California state tax from all those retired out of state.