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.
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