Last month we warned you that CalSTRS (California teachers’ pension fund) was in a bad spot and they were hoping that nobody would notice.
Yesterday CalSTRS announced that investment losses have left the fund with a $42.6 billion dollar shortfall.
Even more worrisome: the fund will be completely wiped out shortly after today’s young teachers enter retirement. To counteract that problem, the fund will need to start sucking in major contribution increases almost immediately.
Naturally the pension system wants to resolve the situation by sending more Sacramento lobbyists to persuade legislators to “take action”. And by “take action” they mean increase contributions to the fund. Since a majority of teachers’ pension contributions come from taxpayers… Well you know what that means.