Wednesday Mar 20 2013
Report: Teacher pensions need $4.5 billion more each yearBy: JUDY LIN, Associated Press
SACRAMENTO (AP) — A new report says California needs to pay an additional $4.5 billion a year to shore up its financially shaky teacher retirement fund.
When combined with the current $1.4 billion contribution, the state would pay more for the pensions of retired K-12 teachers and community college instructors than it does for the entire University of California and California State University systems combined.
That's the assessment of a report released Wednesday by the nonpartisan Legislative Analyst's Office.
The analyst declared that the California State Teachers' Retirement System "may be the state's most difficult fiscal challenge." The report was presented to lawmakers Wednesday during a hearing on the pension fund's $73 billion unfunded liability.
It found that the pension fund would run out of money by 2044 without corrective action.