If money that went into the inflation-protection reserve during the last two decades had instead gone into the CalSTRS pension fund, the recent rate increase would have been smaller.
The state made a $500 million initial repayment to the supplemental fund in 2008 followed by annual $57 million payments of principal and interest that ended three years ago. The CalSTRS board filed a lawsuit to get the SBMA payment and won. Rising pension costs, for example, are one of the financial forces that could push the Los Angeles Unified School District into bankruptcy, a panel of experts warned in a report obtained by the Los Angles Times last November.īut when the state struggled to close a big budget gap in 2003, part of the solution was withholding a $500 million payment to the CalSTRS supplemental fund, which had a reserve of only $1.6 billion then and was making a $224 million annual payment. “If inflation is 3.50 percent each year in the future and the purchasing power level remained at 85 percent, the balance in the SBMA is projected to run out in approximately 40 years.”īut under current assumptions, said Milliman, the big reserve and continued state contributions “would be projected to be sufficient to pay purchasing power benefits at the 90 percent level through the fiscal year ending in 2089.”ĭipping into the big supplement reserve, or diverting its annual state payments, might be a tempting target as the rate school districts pay the California State Teachers Retirement System for pensions more than doubles by the end of the decade. “For example, if inflation is 3.00 percent each year in the future (as currently assumed), the balance in the SBMA would be projected to last forever,” said the Milliman report delivered in April 2014. Teachers and the state have smaller contribution increases.Ī rationale for the large inflation-protection reserve is made by Milliman actuaries in a report to the CalSTRS board that assumes, among other things, continuing state contributions of 2.5 percent of pay and investment earnings of 7.5 percent a year. The CalSTRS contribution rate paid by school districts and other employers will increase, in seven annual steps, from 8.25 percent of pay to 19.1 percent of pay by July 2020. Under long-delayed legislation (AB 1469 in 2014), a plan to get CalSTRS pensions to 100 percent funding by 2046 will take a big bite out of the improving budgets of California schools, which no longer rank 50th among states in per-pupil spending. Supplemental Benefit Maintenance Account payments have remained relatively stable for 25 years (see chart below): $169 million to 52,199 retirees in fiscal 1990, peaking at $348 million to 89,412 in 2008, and dropping to $193 million to 52,474 last year.īut the SBMA reserve, fed by an annual state contribution of 2.5 percent of the teacher payroll invested in the CalSTRS portfolio, ballooned from $113 million in fiscal 1996 to $5.3 billion in 2008, then more than doubled to $11.5 billion last year.Īs the reserve soars, the CalSTRS pension it supplements only has 69 percent of the projected assets needed to pay future pension obligations and a debt or “unfunded liability” of $73 billion, according to the latest actuarial valuation as of June 30, 2014.
State payments required by law - $582 million last fiscal year and $607 million this fiscal year - continue to flow into the huge inflation-protection fund that keeps teacher pensions from falling below 85 percent of their original purchasing power. We are open every day from 9 am to 7 pm.The state makes large annual payments to a CalSTRS supplemental fund with a reserve that more than doubled in the past six years to $11.5 billion, while the fund’s annual payments to retirees dropped from $348 million to $193 million. If you are still not sure that Camp H2O Extreme is just the right camp, come by and visit us for a few hours to see our wide array of activities and friendly service. Camps this summer will be on the following dates:Įach camp has limited openings on a first-come first-served basis, so sign up soon! The cost per camper is $395, but it will be money well spent!
Each activity will be lead by a well-trained and knowledgeable instructor, providing the perfect experience for people of every skill level in a safe and controlled environment.Įach camp runs Monday through Friday from 9 am to 2 pm for one week. This summer we are looking forward to many fun activities such as: stand up paddle boarding, kayaking, pedal boating, canoeing, beach games, boat drives and much more. Thank you for your interest in Camp H2O Extreme, California Water Sports’ summer youth camp! This camp offers a vast array of exciting activities.
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