Public employee pensions have been having problems across the country, on state and municipal levels, but here in California there is a troubling blend of circumstances that make our pension situation especially desperate. The California State Teachers’ Retirement System, the nation’s second largest public pension fund, is reporting a $43 billion shortfall and without drastic action the fund could be completely broke within 35 years. The potential fixes, increased contributions into the fund from teachers and by the state government, look both politically and economically untenable given the continued flagging economy and the hostility toward public workers. Can CalSTRS stay solvent, and what happens to teachers’ retirements if it can’t?
Jack Ehnes, Chief Executive Officer of the California State Teachers' Retirement System - CalSTRS