Is 8 percent a realistic figure to base future funding given the current state of the stock market?
The Teachers’ Retirement Board is considering whether or not to lower the assumed rate of return from the current 8 percent. They will discuss this topic further during their November board meeting. We will keep you informed of their decision in future issues of Retired Educator and here on CalSTRS.com. What about the beneficiary option I took at retirement for my daughter? Will she still be getting that with the funding shortfall? Yes, your daughter will continue to receive her benefit upon your death. CalSTRS retirement, disability and survivor benefits are protected by the California and U.S. constitutions. I notice an enormous number of teachers being laid off. What effect will the large layoffs have on funding? There are contributions to the Teacher’s Retirement Fund from the state’s General Fund that are based on the annual statewide payroll, but layoffs have a minor impact on overall funding. Fewer members earning creditable compensation means fewer contributions paid to CalSTRS
Related Questions
- Does the quality of this plan affect future funding, monitoring, and risk-based assessment or State Standards process evaluation?
- May a college receive state funding for CE courses that are targeted for staff development for college staff members?
- How will the state be able to afford the debt service to pay off the bonds, given the current budget crisis?
