Pension Fix CalSTRS Needs is Long-Term Funding Plan

May. 3, 2012 William Yee
in
Bloomberg

CalSTRS Deputy CEO Ed Derman responds to an April 23 commentary, "New California Taxes Pay for Pensions, Not Schools," on Bloomberg:

Pension Fix CalSTRS Needs is Long-Term Funding Plan

The April 23 commentary by David Crane, at the very least makes misleading assumptions and diverts attention from the real issues CalSTRS faces.

Unlike most other pension plans, the CalSTRS board has no authority to increase contributions, but instead must rely upon legislative action by the Legislature and Governor. As a former board member, Crane should understand this. Contrary to his claim that CalSTRS waited too long to seek increases, CalSTRS has been communicating this need to the Legislature and the Governor since 2006. In fact, Crane was sitting on the board when discussions that led to those efforts took place.

Read more at Bloomberg

CalSTRS Responds on "Pension Perception"

May. 1, 2012 William Yee
in
Los Angeles Daily News

Re "Pension Perception" (Editorial, April 13):

The editorial inaccurately blames pension spiking and members who continue receiving benefits after felony convictions for the unfunded liability at CalSTRS. The law requires CalSTRS to make such payments. Fortunately, both are rare.

Read more at Los Angeles Daily News

CalSTRS CIO Discusses Euro Zone Crisis and Investments on CNBC

Apr. 30, 2012 William Yee
in

Chris Ailman, CalSTRS CIO, talks with CNBC's "Closing Bell" regarding the impact of the euro zone crisis on the global economy and where CalSTRS is investing.

Watch the video at CNBC

Another View: CalSTRS is Seeking Predictable Funding

Nov. 21, 2011 William Yee
in
The Sacramento Bee

Since the recession, when the teachers' retirement fund lost $43.4 billion in value, CalSTRS has said the fund cannot invest its way back to financial health. The discussion of CalSTRS' funding situation has picked up steam since, as nonpartisan entities such as the Legislative Analyst's Office and Bureau of State Audits raised similar concerns, often using CalSTRS' analyses and cost projections.

Read more at The Sacramento Bee

CalSTRS Response to Governor Brown’s 12-point Pension Reform Proposal

Oct. 27, 2011 William Yee
in

CalSTRS appreciates that Governor Brown has taken a very important step in addressing the critical and complex issues facing the state’s public pension systems. We look forward to receiving more detail on the proposal and having the opportunity to review it in depth.

CalSTRS Clarifies Effect of Proposed GASB Accounting Rules for State Legislators

Oct. 25, 2011 William Yee
in

On Tuesday, October 25, CalSTRS CEO Jack Ehnes sent a letter to the members of the California State Assembly and Senate in order to clarify issues and address concerns regarding the effect new accounting rules set by the Governmental Accounting Standards Board (GASB) may have on how the CalSTRS pension fund liabilities are reported.

Read the letter »

Sacramento's Kings

Sep. 14, 2011 William Yee
in
aiCIO Magazine

CalSTRS Chief Investment Officer Chris Ailman speaks to aiCIO magazine of the responsibilities and challenges of managing investments in today’s volatile financial and political environment.

Sacramento's Kings

After a year that saw public pensions derided as legacies of quasi-socialism, for being unable to meet their target investment return, and for being bastions of unsophisticated management, reality set in midsummer: Public funds, lo and behold, had impressive investment returns in fiscal 2011.

Read more at aiCIO Magazine

Another View: CalSTRS Has Safeguards to Deal With Pension Spiking

Aug. 22, 2011 William Yee
in
The Sacramento Bee

CalSTRS' efforts to guard against pension spiking have recently been mischaracterized or overlooked.

The average CalSTRS member retires near age 62 after more than 25 years of service with a pension that replaces about 60 percent of salary. Members receive no Social Security benefits for CalSTRS-covered employment and generally do not receive employer-paid health care benefits after age 65. Of the more than 200,000 retirees who receive CalSTRS pensions, about 2 percent exceed $100,000.

Read more at The Sacramento Bee

Opinion: Public Pensions, Setting the Record Straight on Reform Proposal

Aug. 18, 2011 William Yee
in
Capitol Weekly

Senator Simitian’s SB 27 would create changes to the state’s public pension systems to reduce incidents of pension spiking – the inappropriate inflation of retirement benefits. Recently CalSTRS’ position on this important bill – as well as our own internal efforts to police pension spiking – have been mischaracterized.

Read more at Capitol Weekly

CalSTRS Responds on Pension Spiking

Aug. 12, 2011 William Yee
in
The San Diego Union-Tribune

Regarding the July 22 editorial, “CalSTRS wrong to oppose pension fixes”:

CalSTRS has a role in preventing pension spiking – and it is one we take very seriously. However, it’s important to recognize what the law says CalSTRS can and cannot do.

Read more at The San Diego Union-Tribune

CalSTRS Responds to Pension Reform Study

Aug. 5, 2011 William Yee
in

CalSTRS Deputy CEO Ed Derman responds to a report on pension reform on Capital Public Radio’s "Insight" program.

Listen to more at Capital Public Radio

CalSTRS Explains Pension Fix

Jul. 15, 2011 William Yee
in
The Sacramento Bee

CalSTRS Deputy CEO Ed Derman recently responded to a Sacramento Bee editorial discussing pension spiking.

Commentary Rebuttal: CalSTRS' Side of the Story

Jul. 15, 2011 William Yee
in
Capital Public Radio

Last week, Sacramento Bee commentator Ginger Rutland criticized the California State Teachers Retirement System, saying it’s ignoring whistleblowers who found excessive pay increases. This week, CalSTRS responds.

Listen to more at Capital Public Radio

Leaders Needed for Public Pension Plans

Jun. 14, 2011 William Yee
in
San Jose Mercury News

CalSTRS Deputy CEO Ed Derman recently responded to a San Jose Mercury News opinion article discussing public pensions.

Leaders Needed for Public Pension Plans

David Crane (Opinion, June 5) correctly points out that retirement plans must be adequately funded in order to provide promised benefits while mitigating the impact on the state's general fund.

But he also charges pension fund officials as chiefly to blame for the funding shortfalls, and gives Wall Street financiers a pass for their reckless games that have left the global economy in a prolonged recession.

CalSTRS has been at the forefront in identifying its need for a long-term funding solution to ensure pension security for public educators in the state.

Read more at San Jose Mercury News

CalSTRS CIO Discusses Investment Strategy on CNBC

May. 5, 2011 William Yee
in

CalSTRS Chief Investment Officer Chris Ailman appeared on CNBC’s “Closing Bell” on Tuesday, May 3, 2011 alongside CalPERS CIO Joe Dear.

The two were asked what the nation’s two largest public pension funds are doing on the investment side to help ensure that future pension promises are funded.

Watch the video at CNBC

Dinosaurs? Report Fails to Support Pension Claims

May. 2, 2011 William Yee
in
Pensions & Investments

California State Treasurer and CalSTRS ex-officio board member Bill Lockyer recently responded to a Pensions & Investments editorial on Defined Benefit Pensions.

Dinosaurs? Report Fails to Support Pension Claims

The editorial "Secure by sharing risks," April 18, was heavy on rhetoric, but light on facts and thoughtful analysis. That's not surprising, since the primary source was a California Little Hoover Commission report that was more a political tract than a thorough study this crucial issue warrants. That report failed to address fundamental questions or provide a foundation for its central recommendation, distorted testimony to support its claims and ignored inconvenient data. The P&I editorial exhibits the same failings.

Read more at Pensions & Investments

Your Views: State Responsible, Too

Apr. 25, 2011 William Yee
in
The Press-Enterprise

Your editorial, "Pension ruin" (Our Views, April 12), correctly calls for legislative action to make the California State Teachers Retirement System more sustainable and ensure teacher benefits will be paid for beyond the next 30 years.

The Legislature and the governor -- not CalSTRS -- have the authority and the responsibility to resolve long-term funding gaps of CalSTRS. A responsible solution will likely include gradual increases in contributions, which have not changed in decades, as you suggest.

However, it is important to clarify that because the state is the plan sponsor and ultimately responsible for funding benefits, if a long-term funding plan is not adopted, the state cannot be let off the hook.

Read more at The Press-Enterprise

Letters: CalSTRS Defended

Apr. 4, 2011 William Yee
in
The San Diego Union-Tribune

The U-T editorial “CalSTRS needs to be candid with teachers” (March 16) suggests that CalSTRS has not been telling the whole truth to teachers. The figures cited to describe the pension’s funding issues have come from CalSTRS. The facts are that CalSTRS faces a long-term funding shortfall with assets to pay benefits through at least 2042. Despite these challenges, the benefits of current retirees and active CalSTRS members are secure and guaranteed by both the U.S. and California constitutions.

Read more at The San Diego Union-Tribune

CalSTRS Issues Letter in Response to Little Hoover Report

Mar. 9, 2011 William Yee
in

On Wednesday, March 8, CalSTRS sent a letter to the Little Hoover Commission in response to its report on public pensions. The letter outlines why the recommendations would likely weaken rather than strengthen retirement security for California’s public educators. In some cases, the Commission’s recommendations could actually increase the total cost of providing retirement benefits.

CalSTRS is Not in Immediate Crisis

Mar. 1, 2011 William Yee
in
The Orange County Register

At a recent meeting the CalSTRS board heard from attorney John Stanton a summary of claims that have been propagated against CalSTRS and other public pension funds in the state. Rather than denying a long-term funding problem exists, he spoke of efforts to assert the imminent insolvency of public pension plans.

CalSTRS pension fund is not in immediate crisis. The long-term funding health of our plan is improving. The CalSTRS investment return of 8.2 percent for the past 20 years exceeds our assumptions. Our benefits are paid for and funded for decades.

Read more at The Orange County Register

Editorial: Pension Defenders Invested in a Fallacy

Here's a novel tactic in the debate over reforming public employee pensions so that they don't wind up bankrupting governments at all levels: Deny there's a problem. John Stanton, an attorney for the California State Teachers Retirement System, the country's second-largest public pension fund, told the CalSTRS board last week that California isn't facing a pension crisis at all.

Read more at The Orange County Register