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.

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.

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.

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

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.