Later this week the board of the California State Teachers Retirement System, or CalSTRS, will forward to the Legislature a report laying out options for raising higher contributions into the pension system to ensure its long-term viability.
The Legislature has avoided action for a decade, and Gov. Jerry Brown’s budget forecast for education, with healthy projections for revenue, doesn’t take into account the daunting cost of teachers’ pensions on the expense side of the ledger.
The remedies won’t come cheap. The choice that CalSTRS financial analysts recommend would boost payments, currently about $6 billion, by $4.5 billion per year, starting next year. That amount, a whopping 75 percent increase per year – would be borne mostly by the state and by K-12 and community college districts, as employers and not by current employees. If adopted by the Legislature, that option –