Legislative Committee Hears Testimony on Cash Balance Plan

On January 25, 2012 CalSTRS Deputy CEO Ed Derman testified before the legislative conference committee on pensions. Mr. Derman provided information on the basics of the CalSTRS hybrid retirement system and benefits of the cash balance plan component.

CalSTRS is the only California public pension system to administer a cash balance plan.

Mr. Derman went on to detail the anti-spiking benefits of the plan component and provide background on how the program began. Although the discussion centered on the cash balance plan component, Mr. Derman reminded the legislative conference committee that CalSTRS has a responsible hybrid plan design and that the primary reform needed is a long-term funding strategy that upholds the State’s promise to teachers and protects the State’s General Fund.

• Fact Sheet: The Basics of a Cash Balance Plan