California Educator, though, whistles past the graveyard. Why? Because the state won't renege on its promises to us, it'll just raise taxes to cover any money needed.
...School employees have no need to worry about their CalSTRS...pensions, which are fully protected by law. Fears that market fluctuations will affect CalSTRS or CalPERS payments after retirement are unfounded.
It gets better.
"CalSTRS benefits are not dependent on the funds in the CalSTRS investment portfolio," says Sherry Reser, spokesperson for CalSTRS. "These benefits are a contractual right protected not only by the California Constitution but also by the U.S. Constitution."
Wow, that's a whopper of a quote! First, Ms. Reser all but tells us that our retirements will be covered by the taxpayers, whether or not STRS makes good investments or has a nice new building. Then she states that my retirement is protected under the US Constitution! Try as I might, I cannot find that article or amendment that addresses CalSTRS.
A statement that huge cries out for an explanation, but none is forthcoming, at least in California Educator.
I didn't appreciate this comment:
"When CTA members retire, their pension is going to be there," says Reser.
What about those of us who are not CTA members?
I hope that my promised retirement awaits me, but I'm not very confident.
Update, 12/22/08: CalPERS will just go to the taxpayer, hat in hand.