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SACRAMENTO (AP) — Gov. Jerry Brown has signed a bill creating a long-term plan to pay down California’s $74 billion in unfunded teacher pension liabilities.

The governor signed AB1469 by Democratic Assemblyman Rob Bonta of Alameda on Tuesday. The move was largely a formality because the plan to fully fund the California State Teachers’ Retirement System was approved by lawmakers June 15 as part of a state budget package negotiated with Brown.

The bill increases contributions from the state, school districts and teachers over time to eliminate the unfunded liability by 2046. Contributions eventually will rise to $5 billion a year.

For the first time, AB1469 gives the pension board some authority to raise state contribution rates.

If nothing had been done, the system would have run out of money in 33 years.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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