CalSTRS Receives $500M Payment from State.Funds Transferred Following Appeals Court Decision SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif. -- The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). State Teachers' Retirement System (CalSTRS) has received $500 million from the State of California for a skipped payment to its inflation-protection program, the Supplemental Benefit Maintenance Account (SBMA SBMA Subic Bay Metropolitan Authority SBMA Spinal and Bulbar Muscular Atrophy SBMA Santa Barbara Museum of Art (California) SBMA Spinobulbar Muscular Atrophy SBMA Southern Building Material Association SBMA Steel Bar Mills Association ). The state transferred the funds following an August 30 appeals court decision, which held the state violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. its obligation to California's retired educators when it withheld the payment for the 2003-2004 fiscal year. "The long-delayed payment of millions of dollars owed to the Teachers' Retirement Fund is necessary to ensure the retirement security of California educators," said Jack Ehnes, CalSTRS Chief Executive Officer. "The SBMA serves our members who are the longest retired and most dependent on CalSTRS benefits." The Third District Court of Appeal decision also called for the payment of interest, which CalSTRS estimates could exceed $200 million. A legislative appropriation The designation by the government or an individual of the use to which a fund of money is to be applied. The selection and setting apart of privately owned land by the government for public use, such as a military reservation or public building. will be required for the payment of interest. In 2003, Governor Gray Davis signed Senate Bill 20, which withheld a $500 million payment to the SBMA that year. The SBMA currently funds quarterly payments to approximately 63,000 retired educators and their survivors when inflation erodes their monthly benefit below 80 percent of its original consumer purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. . With a $169 billion investment portfolio, the California State Teachers' Retirement System is the second-largest public pension fund in the U.S. It administers retirement, disability and survivor benefits for California's 795,000 public school educators and their families from the state's 1,400 school districts, county offices of education and community college districts. For more information on CalSTRS, visit www.calstrs.com. |
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