January, 2012

Gov. Jerry Brown pledges to cut spiraling costs, but key parts of his rollback plan apply mainly to future workers. Activists want quicker action.

CalSTRS announced meager investment gains for 2011 – and repeated its plea to the Legislature for help. The California State Teachers’ Retirement System said Tuesday it earned a 2.3 percent return last year.

The nation’s largest public pension fund, the California Public Employees’ Retirement System, posted a 1.1% return on its investment portfolio in 2011, Chief Investment Officer Joseph Dear told his board.

The pension funding crisis facing state and local governments has been widely reported. Vested pension benefits are a fixed financial obligation of governments, and to the extent the assets that have been set aside to pay for the benefits are inadequate, the pensions represent an unfunded financial obligation.

403(b) programs are becoming more like corporate 401(k) plans as school districts respond to revised rules.