Except that STRS is finally admitting that there's a "shortfall".
CalSTRS is running out of time. In 10-12 years when the post 1970 era of teachers and administrators are fully retired the system goes belly up. The promises made to these folks will be empty promises, with no money to back up the contracted retirement agreements. It will be flat broke. In fact, they say the problem will last five to six decades, not years, decades.
I had planned on retiring in just over 20 years. Oh well.
This link, from which the above quote comes, includes other commentary as well as the text of an article from the major Sacramento newspaper. Maybe we'll need a tax increase to fund these obligations! Or maybe the state will require teachers to pay an even higher percentage into STRS than we already do. Which proposal do you think the STRS board is trying to sell to the legislature and governor? (Hint: it's not the first one.)
The teachers’ contribution rate would rise to 8.5 percent from 8 percent. Educators would see their payments increase an average $350 a year. As a trade-off, a 2 percent annual cost-of-living increase would be guaranteed by law.
If districts were required to give teachers the entire 2%, there would be no incentive ever to give a higher raise, ever, especially given that
School districts would see the current 8.25 percent rate increase by 0.5 percent a year until it reaches a cap at 13 percent. However, officials said employers could likely meet their obligation with an 11.9 percent rate.
The state rate, now at 2 percent, would increase by 0.5 percent annually to a maximum of 3.25 percent.
I'd say that this is a goat-screw.