Actuaries are recommending that one of the state’s oldest public pension systems, the California State Teachers Retirement System formed in 1913, lower its investment earnings forecast from 7.5 percent to 7.25 percent.
If the newly empowered CalSTRS board adopts the lower forecast next week, state rates paid to the pension fund would increase by 0.5 percent of pay, an additional $153 million bringing the total state payment next fiscal year to $2.8 billion.
Rates paid by an estimated 80,000 teachers hired after Jan. 1, 2013, when a pension reform lowered benefits, also would increase by 0.5 percent, taking about $200 a year from the average salary of $40,000.
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