EdSource Today: CalSTRS estimates $22.7 billion savings from pension reform

By John Fensterwald

The pension reforms that the Legislature passed before skipping town on Friday will save the California State Teachers’ Retirement System $22.7 billion over 30 years, according to a preliminary analysis that CalSTRS released on Wednesday. But CalSTRS administrators cautioned that most of the savings won’t be achieved for decades, because reduced pension benefits will affect only employees hired after Jan. 1, 2013. And the savings won’t reduce the Legislature’s need to deal with the current $65 billion deficit, caused when returns on investments tanked in 2008 and failed to fully recover.

“We have been working for some time to raise awareness of our funding shortfall, the cost of waiting to address it, and the ultimate risk failing to do so presents to the state General Fund,” said CalSTRS Chief Executive Officer Jack Ehnes in a press release.

via CalSTRS estimates $22.7 billion savings from pension reform – by John Fensterwald.

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