Jan. 29 (Bloomberg) — California Democrats will introduce legislation to shore up the state's $181 billion teacher pension fund, which is projected to run out of money in three decades without a fix.
Any plan must include higher contributions from teachers as well as more from schools and taxpayers, said Assembly Speaker John Perez, a Los Angeles Democrat. How much of an increase will be determined in hearings next month, he said.
Pension costs for retired public employees are straining governments from California to Rhode Island. The California State Teachers' Retirement System, the second-biggest in the U.S., is more than $70 billion short of the amount it would need to cover benefits.
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