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Teacher pensions added to CA's high-risk list

The state auditor's office is adding teacher pensions to the list of high-risk issues facing California government.

August 19, 2011 12:00:00 AM PDT
The state auditor's office is adding teacher pensions to the list of high-risk issues facing California government.

A report released Thursday includes the pensions along with the state's chronic budget deficit, retiree health costs and prison crowding as California's biggest fiscal challenges.

The teacher pension fund was added because it can't pay retirement benefits beyond the next 30 years.

The California State Teachers' Retirement System reported in March that it had 71 percent of the assets needed to cover retirement costs for its 852,000 members and family members. The estimated shortfall is $56 billion.

Both the pension board and Gov. Jerry Brown have called for funding changes - which require action by the state legislature - to shore up long-term finances at CalSTRS.

The Associated Press contributed to this report.


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