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.READ MORE: LA Launches Program To Accelerate Granny Flat Construction Process
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.READ MORE: Woman Shot During Brazen Daylight Robbery At Beverly Hills Restaurant
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.MORE NEWS: 150 Railroad Ties Damaged In Fire At Vernon Lumber Yard
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