From the Associated Press, via the Silicon Valley’s MercuryNews.com
SACRAMENTO — The state auditor’s office on Thursday added teacher pensions to the list of high-risk issues facing California government.The report by State Auditor Elaine Howle added the nation’s largest teacher pension fund because it can’t meet the costs of retirement benefits beyond the next 30 years. The pension funding problem was added to a list of risks that includes California’s chronic budget deficit, unfunded retiree health costs and prison crowding.It’s a well-known problem. The California State Teachers’ Retirement System reported in March that it had 71 percent of the assets needed to cover retirement costs for its 852,000 members and family members. The estimated shortfall is $56 billion.
Perhaps the Chinese will bail them out.