California Auditor Adds Teacher Pensions To ‘High-Risk’ List

SACRAMENTO (CBS/AP) – The state auditor’s office is adding teacher pensions to the list of high-risk issues facing California government.

A report released Thursday added the pension fund because it can’t pay retirement benefits beyond the next 30 years. The pension problem was added to a list of risks that also includes California’s chronic budget deficit, retiree health costs and prison crowding.

The California State Teachers’ Retirement System reported in March that it had only 71 percent of the assets needed to cover retirement costs for its 852,000 members and family members. The estimated shortfall is $56 billion.

School districts and educators pay for pensions, but the amount has not changed for decades. Both the pension board and Gov. Jerry Brown have called for funding changes, which the legislature must approve.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

  • Carol

    Teachers by and large are underpaid for the work they do. They are also under appreciated for the emmense responsibility they have of making sure your children are safe, they receive the education you expect and the committment they make. Now, they must face another blow with their retirement.

  • Michael

    You work no harder then other people on this planet. You work 9 months out of the year, Your paid above average what the private sector recives in income. The private sector does not have the lock on employment you have. Once your in you can never be fired for bad proformance.

    If you would like to get paid more, maybe you should look @ the administrators above you how many do you need to run a school system? They make 6 figures easy. Why don’t you speak up. The sytem you work for is broken.

    As for the education they need?? They sure are not getting in the pulic school system. We spend more money for education now than we did 30 years ago, Test scores are lower??? Why???

    If you don’t like the school system, then get out find another job!!

    One other thing you need to learn there is no guarantees in life.

  • Jon

    Michael’s comments are completely inconsistent. He says teachers don’t work harder than others and therefore are not underpaid, and yet the system is broken to favor administrators, whose salaries should be redistributed to teachers, insinuating that teachers are indeed underpaid.

    Teaching should be a respected profession, and it should be pursued by our brightest and most talented — including those that are ambitious. Teaching should be on par with bankers and lawyers as far as pay. That way it would be competitive enough to consistently attract excellent teachers.

    FYI teachers who “only work 9 months out of the year” are also only paid 9 months out of the year. So in that way, it’s like seasonal work that you have to find second jobs to make up for the lost hours.

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