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CalPRS is about $525 billion in unfunded liabilities. CalSTRS--the teachers’ pension plan has about $52 billion in unfunded liabilities. Neither is sustainable.
"What the Legislature could do is change the system for new employees: switch from a defined benefit to a matched contribution 401(k) plan, raise the retirement age, or alter the formula, based on a person’s age and years of teaching, used to determine the retirement benefit. But that wouldn’t help the state’s immediate budget crisis, and, if done punitively, could be one more factor to discourage potential teachers from entering the profession."
SB 27 would make some serious changes--but not enough to save the taxpayers billions in payments. Just watch this crisis. Jerry thinks it is no big deal. Why? Because his unions owners told him. This is why he only spent a couple of sentences on this crisis in his State of the State.
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"What the Legislature could do is change the system for new employees: switch from a defined benefit to a matched contribution 401(k) plan, raise the retirement age, or alter the formula, based on a person’s age and years of teaching, used to determine the retirement benefit. But that wouldn’t help the state’s immediate budget crisis, and, if done punitively, could be one more factor to discourage potential teachers from entering the profession."
SB 27 would make some serious changes--but not enough to save the taxpayers billions in payments. Just watch this crisis. Jerry thinks it is no big deal. Why? Because his unions owners told him. This is why he only spent a couple of sentences on this crisis in his State of the State.
More...