CalSTRS Member Benefits - Plan Perspective: Jack's Blog

The Importance of Good Governance

Jack Ehnes — Thu, 10 May 2012 19:01:24 +0000

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.

May. 10, 2013

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

Jack Ehnes — Fri, 20 Apr 2012 17:24:41 +0000

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.

Apr. 20, 2013

Educator Pensions Aid Healthy Economies

Jack Ehnes — Fri, 23 Mar 2012 16:02:47 +0000

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.

Mar. 23, 2013

Perspective on Pensions, Felonies and the Law

Jack Ehnes — Fri, 02 Mar 2012 18:18:46 +0000

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.

Mar. 2, 2013

A Balanced Investment Strategy

Jack Ehnes — Thu, 09 Feb 2012 21:32:50 +0000

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?

Feb. 9, 2013

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

Jack Ehnes — Mon, 23 Jan 2012 17:32:08 +0000

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.

Jan. 23, 2013

New Accounting Rules Cause Concern

Jack Ehnes — Tue, 06 Dec 2011 22:51:34 +0000

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.

Dec. 6, 2012

A Commitment to Preventing Pension Abuse

Jack Ehnes — Wed, 14 Sep 2011 16:30:03 +0000

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

Sep. 14, 2012

We’re Serious About Preventing Spiking

Jack Ehnes — Wed, 17 Aug 2011 17:57:12 +0000

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.

Aug. 17, 2012

Robust Investment Returns Best in 25 Years

Jack Ehnes — Tue, 19 Jul 2011 21:11:09 +0000

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.

Jul. 19, 2012