SACRAMENTO (AP) — California’s unfunded debt for teacher pensions has grown by nearly $11 billion after officials lowered its outlook for investment earnings.
The California State Teachers Retirement System reported Thursday that it is facing a $107 billion gap between the cost of pensions promised to teachers and the money currently set aside to pay for them.READ MORE: Marin County Declares Drought Emergency; 'Worst We Have Seen In Over 140 Years'
As of June 30, 2017, the pension system was 62.6 percent funded, down from 63.7 percent a year earlier. It had $209 billion in assets.UPDATE: Birthday Party Bus Riddled With Bullets On I-580 in Oakland; 2 Dead, Several Wounded
CalSTRS officials say the increase in the unfunded obligation is due primarily to a decision last year to lower the assumed investment return by half a percent to 7 percent per year.
Assuming smaller earnings from investments means teachers, school districts and the state will have to make up the difference.MORE NEWS: COVID Reopening: Santa Clara County Latest To Enter Least-Restrictive Yellow Tier
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