The California State Teachers Retirement System yesterday lowered its investment earnings forecast from 7.5 percent to 7 percent over the next two years, taking a bite out of the paychecks of about 80,000 teachers hired since 2012.
The larger California Public Employees Retirement System cited the same reasons last month while lowering its earnings forecast from 7.5 percent to 7 percent: changing economic conditions and longer retiree life spans.
Both pension boards were told by school groups, who did not oppose the changes, that growing pension costs for teachers in CalSTRS and non-teaching employees in CalPERS are eating into the money needed for students.
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