California Teachers’ Fund Reduced Goal Will Hit These Districts Most
- Los Angeles, San Diego and Long Beach districts to pay more
- Calstrs follows Calpers’ lead to 7 percent return assumption
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The decision by the California State Teachers’ Retirement System to follow the larger California Public Employees’ Retirement System in rolling back its annual investment-return target means school districts will have to increase their contributions because they can’t count as heavily on the gains to cover future benefit checks.
The system’s move to 7 percent from 7.5 percent over two years will compel higher yearly payments from the state, workers, and about 1,740 schools and other participating public agencies. The impact will be the biggest for those already in debt to the retirement plan.