California teachers pension fund reports $64 billion deficit


The California teachers pension fund, CalSTRS, is effectively insolvent. However, under grossly unfair and delusional California law, state pension funds can simply order the state to make up any shortfalls they have. So there’s really no reason for the public pension funds to try very hard, is there? The roles here are backwards, the pension funds seem to have captured the state.

The trust fund that provides pensions to the state’s retired teachers has a $64 billion deficit and would need a $4.5 billion-per-year infusion of revenue to become fully solvent, according to a new internal study.