A new report said California needs to pay an additional $4.5 billion a year to shore up its financially shaky teacher retirement fund.
The nation’s largest teacher pension fund is taking the first step toward divesting from companies that manufacture guns and high-capacity ammunition magazines that are illegal in California.
The nation’s largest teachers’ pension fund says it will review its holdings after being criticized for having an investment in the manufacturer of an assault rifle used in last week’s Connecticut school massacre.
California’s teacher pension fund has earned a 1.8 percent return from investments this year, a rate that falls short of expectations and could add to the system’s shortfall.
The board overseeing California’s teacher pension system has lowered the fund’s investment forecast for the second time in 14 months.
The Stanford Institute for Economic Policy Research said the shortfall in the plans that cover 2.6 million California teachers, state workers and university employees is too large to be solved only by cutting future payouts.
The state auditor’s office is adding teacher pensions to the list of high-risk issues facing California government.
Gov. Jerry Brown released a 12-point proposal to revamp California’s public-employee pensions Thursday.
The pension system for California’s teachers has $56 billion less than it needs to cover the benefits promised to its 852,000 members and their families.
The pension fund representing California teachers on Wednesday criticized a watchdog panel’s proposals to overhaul state employee retirement plans and said the changes would drive costs higher and were legally risky.