CalSTRS Member Benefits

Plan Perspective: Jack's Blog

Mar. 10, 2010 CalSTRS-ca

A perspective on the current and future state of the CalSTRS Defined Benefit Program from CalSTRS CEO Jack Ehnes.

The Importance of Good Governance

May. 10, 2012 Jack Ehnes

Jack Ehnes With the recent allegations of corporate misconduct, fraud and bribery, corporate accountability has become a high-profile issue. Media reports of questionable leadership underscore the role boards of directors play in the long-term growth of publicly held companies. Concerned investors like CalSTRS, want assurance that governance safeguards and effective internal controls are put in place to mitigate any future risk.

CalSTRS 2011 Valuation Shows 23 Percent Investment Return Helps, But Not Enough

Apr. 20, 2012 Jack Ehnes

April is an active month for CalSTRS and educators alike. Every year at this time the CalSTRS board adopts the latest actuarial valuation which captures the long-term needs of the fund. This year’s valuation of the Defined Benefit Program was adopted on April 12.

Educator Pensions Aid Healthy Economies

Mar. 23, 2012 Jack Ehnes

This year’s National Institute on Retirement Security conference held in early March, “Pensionomics 2012: Measuring the Economic Impact of DB Pension Expenditures,” featured a new report that demonstrates how defined benefit pensions support economic activity and how this activity keeps California’s local economies stable. There are a couple of key points made during the conference I would like to highlight.

Perspective on Pensions, Felonies and the Law

Mar. 2, 2012 Jack Ehnes

Disturbing allegations about some Los Angeles area teachers and their unthinkable and illicit actions against students have generated a lot of media coverage recently. You have probably seen the stories.

In addition to sparking public outrage over how such things could happen in our schools, these reports have prompted some to question why a teacher who is alleged to have so seriously violated the public trust and students’ innocence should continue to receive pension benefits. We understand this frustration.

A Balanced Investment Strategy

Feb. 9, 2012 Jack Ehnes

On Thursday, February 2, 2012, the Teachers’ Retirement Board voted to lower the investment return assumption a quarter of a percent to 7.5 percent. The move, based on the recommendation of outside actuarial firm Milliman, Inc., marks the second time in 14 months the board has lowered the assumed rate of return. So why is this important?

A Glance at Governor Brown's Twelve-Point Pension Plan

Jan. 23, 2012 Jack Ehnes

On October 27, 2011, Governor Brown unveiled his 12-Point Pension Plan. As the debate around pension reform continues, it’s important to emphasize that the most pressing need facing CalSTRS was not included in the Governor’s proposal: A plan of action to address the long-term funding needs of the system. To be clear, the authority and responsibility for this action rests with the Governor and the Legislature.

New Accounting Rules Cause Concern

Dec. 6, 2011 Jack Ehnes

It’s important to share with you some information about a little-known organization, the Governmental Accounting and Standards Board, who sets industry standards for how government finances are reported. On July 8, 2011 GASB released Exposure Drafts which include new accounting rules for how public pension fund liabilities are reported.

A Commitment to Preventing Pension Abuse

Sep. 14, 2011 Jack Ehnes

CEO Jack Ehnes talks about CalSTRS commitment to curbing spiking and other pension abuses.

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We’re Serious About Preventing Spiking

Aug. 17, 2011 Jack Ehnes

As I go around the state speaking to teachers groups, I’m starting to get more questions about what CalSTRS is doing to prevent pension spiking. CalSTRS is the steward of your pension funds and we are working hard to ensure spiking is prevented, detected and corrected.

However, it’s important to recognize what the law says CalSTRS can and cannot do.

Robust Investment Returns Best in 25 Years

Jul. 19, 2011 Jack Ehnes

With relief mixed with caution, we celebrate the remarkable 23.1-percent investment return, our highest in 25 years. CalSTRS ended the 2010-11 fiscal year with an investment portfolio valued at $154.3 billion. This is up $29 billion from last fiscal year, which posted a 12.2 percent investment return.

Mandatory Social Security Costs More, Offers Less

Jun. 30, 2011 Jack Ehnes

Several studies have recently suggested that including Social Security may lower the cost of the CalSTRS defined benefit. CalSTRS commissioned a study that found just the opposite to be true.

Your CalSTRS Pension Benefits the State Economy

May. 27, 2011 Jack Ehnes

The CalSTRS Defined Benefit pension provides secure retirement income that our retired members and their beneficiaries rely on, but they’re not the only ones. Communities throughout the state also realize an economic benefit from the state’s nearly 214,000 retired educators.

A Conversation With CalSTRS CEO Jack Ehnes - Part 4

May. 23, 2011 Chad Christman

In the last of a four-part series, CalSTRS CEO Jack Ehnes talks about working together to keep the system strong and the importance of staying connected with CalSTRS.

Related Video: Pt. 1 I Pt. 2 I Pt. 3

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Pew Report Examines Pension Funding

May. 5, 2011 Jack Ehnes

The latest report from the Pew Center on the States looks at the funding levels of state public retirement benefits in 2009. The data sample, which was the basis of the study, was taken shortly after we reached the depths of the worst financial crisis since the Great Depression.

A Snapshot in Time

Apr. 20, 2011 Jack Ehnes

At its meeting earlier this month, the CalSTRS board adopted the actuarial valuation of the Defined Benefit Program as of June 30, 2010. The valuation is an annual “snapshot” of the fund’s financial condition.

Time for a Reality Check

Mar. 1, 2011 Jack Ehnes

Recent media reports have brought attention to the funding challenges facing CalSTRS. They inaccurately suggest, however, that CalSTRS is on the brink of running out of funds and cannot meet its obligations.

Investment Returns Solid But Plenty of Work Still to be Done

Feb. 4, 2011 Jack Ehnes

CalSTRS has ended the 2010 calendar year with its investments posting a 12.7 percent return. It marks back-to-back positive calendar year returns and boosts the market value of our investment portfolio to levels not seen since October 2008.

Assumptions Adjustments May Impact Members

Jan. 6, 2011 Jack Ehnes

You have likely heard or read here that the Teachers’ Retirement Board has lowered several long-term actuarial assumptions, including the important investment return assumption. These changes increase CalSTRS projected long-term funding shortfall, but that only illustrates more clearly that the state must act to adopt a responsible funding solution.

Economic Assumptions Help Plan for the Future

Dec. 23, 2010 Jack Ehnes

The funding for your Defined Benefit pension is based on several economic assumptions. Among the most critical of these planning factors are the investment return assumption and the assumed inflation rate.

Baby Boomers Are Accounted For

Dec. 9, 2010 Jack Ehnes

Some of you have expressed concern about the large number of Baby Boomers about to enter retirement and the impact that may have on CalSTRS. Some pension analysts and other pension reform pundits would have you believe that catastrophe is just around the corner, and public pension programs will soon exhaust their assets.

That can’t be farther from the truth at CalSTRS, and here’s why.