California Retired Teachers Association Commends CalSTRS for Stellar Investment Returns.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). Retired Teachers Association today commended the California State Teachers' Retirement System for continuing to earn double-digit investment returns which have significantly improved the system's funding status and underscored the value of professional investment portfolio management. "CalSTRS' has consistently outperformed the stock market since the end of the bear market in 2003," noted CRTA Crta Carretera (Spanish: Road or Highway) CRTA Committee on Regional Trade Agreements (World Trade Organization) CRTA California Retired Teachers Association CRTA Controlled Rate Thermal Analysis President George Avak. "Thanks to this string of double-digit returns, an already healthy pension fund is on the way to full funding." A valuation of the Teachers' Retirement Fund, released today, shows the system has closed a projected funding gap by nearly $4 billion in just one year. Because of the conservative accounting principles used to determine the system's fiscal health, the Fund is actually in better shape than the valuation assumes. The turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. comes from three straight years of double-digit investment returns -- 23.1 percent in 2003, 13.1 percent in 2004, and 10.2 percent in 2005. The system assumes an 8 percent rate-of-return and anything above that serves to reduce the shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. . The TRF TRF thyrotropin releasing factor. has a market value of $142 billion, the second-largest public pension fund in the nation. "This turnaround certainly belies the claims of pension opponents, who would like the state to eliminate guaranteed pensions for educators," noted Avak. "If teachers were required to manage their own retirement accounts, it's unlikely many would realize such a string of investment successes. Instead, we would run the risk of retired educators outliving their savings and placing extraordinary financial burdens on public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ." Avak also noted that the current funding situation would be even better if the state had not cut its contributions to teachers' retirement in 2000. CRTA is the state's leading organization devoted to the protection of the pensions of retired public educators. For further information, go to www.calrta.org. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion