The liability, which has been building for years, is at least $71 billion.
JP Morgan Chase & Co. will pay nearly $300 million to California’s public employee and teacher pension funds as part of a settlement related to mortgage-related investments.
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.