Saturday, January 30, 2010

CA Teachers Retirement System underfunded by $42 billion

Expect the exodus from California to grow into a stampede as taxpayers realize what a criminally negligent legislature has done to the State's finances.

Mr. Ehnes says CalSTRS has no authority to impose such an increase, unlike pension plans in other states. Instead, he says the California Legislature must approve such an increase, but he concedes that action this year is unlikely given the political climate and California's $20 billion budget deficit.

Mr. Ehnes says CalSTRS plans to continue an education campaign to persuade legislators to take action in 2011.