Examining the CalSTRS Shareholder Bailout

By Edward Ring
05/27/2014
“CalSTRS has a $70-plus-billion unfunded liability – even with assumed investment earnings that Brown deems ‘highly unlikely’ – and says it needs about $5 billion more a year to regain solvency.” –  Dan Walters column, “Brown budget reflects state’s massive debt,” May 25, 2014, Sacramento Bee Those “investment earnings” that Walters quotes Brown as finding...

TAGS: CalSTRS, CalSTRS unfunded liability, normal pension contribution

Public Pension Solvency Requires Asset Bubbles

By Edward Ring
04/29/2014
The title of this post expresses what is probably the greatest example of a monstrous hypocrisy – that public employee unions, and the pension funds they control, are supposedly helping the American economy, and protecting the American people from “the bankers.” Overpriced “bubble” assets caused by banks offering low interest rates hurt ordinary working people...

TAGS: American Federation of Teachers, CalPERS, CalSTRS, low interest rates, pension funds, Public sector pensions

Why Frequently Cited Average Pension Numbers Are Misleadingly Low

By Robert Fellner
04/28/2014
Public pension systems in California, most notably CalPERS and CalSTRS, are quick to cite their average pension amount as evidence that their pension benefits are reasonable. In addition to the pension plans themselves, many defenders of public pension plans will cite these averages themselves when attempting to counter claims that pension benefits have become excessive...

TAGS: CalPERS, CalSTRS, Public sector pensions

How Much Do CalSTRS Retirees Really Make?

By Robert Fellner
03/12/2014
Summary:  The California State Teacher’s Retirement System (CalSTRS) is California’s 2nd largest public employee pension fund, serving roughly 2% of California’s population. At present, its unfunded liability is officially estimated at $71 billion. While much of the discussion over pension reform focuses on projected rates of investment returns, which greatly affects the required annual contributions...

TAGS: California State Teachers Retirement System, CalSTRS

Public Sector Pension Plans Do Not Pass the "Smell Test"

By Edward Ring
03/04/2014
“Pew’s relationship with the Arnold Foundation does not pass the smell test,” said Meredith Williams, Denver-based executive director of the National Council on Teacher Retirement. –  “Pension Funds Press Pew to Cut Arnold Foundation,” Philanthropy Today, March 4, 2014 If you’re looking for an example of how, increasingly, political debate in America is framed as...

TAGS: California State Teachers Retirement System, CalSTRS, CalSTRS unfunded liability, GASB

Is California's Union-Controlled Legislature Waking up to Pension Problem?

By Jon Coupal
02/12/2014
Is it possible that the California Legislature is finally coming to grips with the public employee pension crisis? We certainly hope so. For years, our political leadership has behaved more like ostriches with their heads buried in the sand regarding the many billions of dollars of “unfunded liabilities” in California’s pension funds. Unlike most retirement...

TAGS: California Legislature, CalPERS, CalSTRS, Jon Coupal, public employee unions

How Unions and Bankers Work Together to Protect Unsustainable Defined Benefits

By Edward Ring
11/26/2013
One of the biggest unreported, blockbuster stories in modern America is the alliance between public sector unions and the speculative banking industry. It is a story saturated in greed, drowning in delusion, smothered and marginalized by an avalanche of propaganda – paid for by taxpayers who fund both the public sector unions and the public...

TAGS: CalPERS, CalSTRS, Public sector pensions, public sector unions, Social Security

Are Annual Contributions Into CalSTRS Adequate?

By Edward Ring
11/08/2013
Preface: Earlier this year the California Policy Center published a study evaluating the Orange County Employee Retirement System (OCERS) to explore this same question: Are Annual Contributions into OCERS Adequate? That study adopted a unique focus, evaluating contributions into OCERS not based on percent of payroll, but by looking at the actual amount of cash being contributed...

TAGS: California State Teachers Retirement System, CalSTRS, CalSTRS unfunded liability

New Accounting Rules Will Double CalSTRS Reported Unfunded Liability

By Jon Coupal
10/11/2013
It’s been said that after Al Capone was sentenced to prison for tax evasion in 1931, his chief financial and legal advisor, Jake “Greasy Thumb” Guzik, told other mobsters how to avoid Big Al’s fate. They must keep two sets of books. One set, that could be made public, would show “honest income” from a...

TAGS: CalSTRS