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California teachers' retirement fund falls short

The pension fund for California's teachers is facing a $24 billion pension shortfall. CalSTRS trustees will spend the next few months looking for ways to bridge the gap. KPBS reporter Beth Ford Roth

The California State Teachers' Retirement System, or CalSTRS, has projected the $24 billion deficit could jump to $212 billion in the next thirty years if action is not taken. The fund is 83 percent funded, and a San Diego County pension official says anything below 85 percent is considered worrisome.

CalSTRS trustees are considering different tactics to bridge the shortfall. Those proposals include selling pension obligation bonds, cutting benefits for new teachers, or asking school districts to pay more into the system.

Trustees will discuss these options with teachers groups and school districts over the next two months.

CalSTRS is the third largest pension fund in the country. It has more than 750,000 members.

Beth Ford Roth, KPBS news.