Assembly to Tackle CalSTRS Pension Liability
On January 29 state Assembly Speaker John A. Pérez (D-Los Angeles) and Assemblymember Rob Bonta (D-Oakland), Chair of the Assembly Public Employees, Retirement and Social Security Committee, announced they would push to implement a long-term solution to the funding shortfall in the California State Teachers’ Retirement System this year.
“The Assembly will pursue a solution to the STRS shortfall this legislative session,” said Speaker Pérez. “Further delay only means further cost and further exposure for the state’s general fund. We believe there must be shared responsibility for a funding solution between school districts, the state and teachers. Our end goal is a State Teachers Retirement system that is 100% fully funded.”
Assemblymember Bonta noted his committee would begin holding hearings in February.“I am eager to begin this process and confident that an equitable and permanent solution can and will be found to the CalSTRS funding problem. Ensuring the long term financial security of California’s hardworking and dedicated teachers is a goal we are hopeful we can achieve this year,” Assemblymember Bonta said.
State Treasurer Bill Lockyer welcomed action by the Assembly to resolve the funding shortfall. “I welcome a serious effort to address financial problems that threaten STRS’ long-term survival,” said Lockyer. “It’s a tough assignment. Prompt action is imperative, because the problem grows costlier as time passes. Hopefully, the Legislature and Governor can produce a solution this year that strengthens STRS’ financial structure and protects our teachers’ retirement security.”