The actuarial analysis concludes that under current practices and assumed returns, the fund will be depleted in about 30 years.I'm screwed. See the link for a scary graph.
The actuarial analysis concludes that under current practices and assumed returns, the fund will be depleted in about 30 years.I'm screwed. See the link for a scary graph.
7 comments:
Darren
Is the fund broke because of underfunding or waste of the money like with Social Security?
Underfunded, and some overly-cheery return estimates.
Didn't they also lose a bunch of money in a couple of those recent Tech bubble burst, huge company failures and/or Ponzi schemes?
Darren: "Underfunded, and some overly-cheery return estimates."
Note that usually the overly-cheery return estimates are what allow/enable/encourage/require the underfunding. The two are not independent.
Not that this makes things any better...
-Mark Roulo
"..33.5 percent of the average teacher salary over the next 30 years"
Looks like teachers might be better off putting that 1/3 of their own salary into tax deductible IRA/SEP investment plans
Don't forget the real estate market, Steve. And KauaiMark is absolutely correct.
This is not news... but it is an open secret.
CalPensions.com covered the story back in 2010; the particular CalSTRS document that references the projection that they will be out of money in 30 years or so is here. Refer to page 2 and onward.
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