Issue link: http://educator.cta.org/i/795366
48 cta.org Fortunately, the governor's 2017-18 budget designates $2.8 billion in General Fund contributions to CalSTRS and includes an additional $153 million in anticipa- tion of that 0.5 percent rate increase. e increased contribution rate from the state could be implemented in July 2017. "Having these factors in place further reinforces that CalSTRS will continue to meet the financial needs of our more than 914,000 members and their beneficiaries," says CalSTRS Executive Officer Jack Ehnes of the board vote. The CalSTRS Board is set to decide on th e increased state contribution at its April meeting. "CalSTRS regularly evaluates their rate of return and will make changes when necessary," says CTA legislative advocate Jennifer Baker. "What is different this year is that it prompts a component of AB 1469 that requires a shift in contribution rates to ensure that a gap in full funding will not be created." AB 1469, enacted in 2014, is the land- m a rk p en si on re f or m l eg i sl ati on th at stabilizes the retirement system's funding. Under it, CalSTRS has the ability to make limited adjustments to ensure the fund's health into the future. There will be no increase on employer (school district) contributions in 2017-18, though the CalSTRS Board could raise the contribution rate in 2021 on a limited scale based upon future actuarial valuations. e CalSTRS action comes on the heels of a December vote by the board of the California Public Employees' Retirement System (CalPERS) to reduce the expected return rate to 7 percent by 2019-20. While m o s t C TA m e m b e r s a r e m e m b e r s o f CalSTRS, faculty in the CSU system and many education support professionals are CalPERS members. e CalSTRS Board also voted to change its assumptions about members' mortality rates, following a recommendation in the CalSTRS Experience Analysis, which found that the life expectancy for members early in their career is two to three years longer than was projected by previous assump- tion s. Thi s m ean s that th o se y oun ger members are likely to draw pensions for a longer period. The California State Teachers' Retire- ment System is the largest educator-only pension fund in the world, and is funded by contributions from the state, employers and individual employees. Changes to Educators' Pension System CTA & You why this should be the only credit card you reach for For more information about the rates, fees, other costs and benefits associated with the use of the credit card, call the toll-free number above or visit www.newcardonline.com. * The 2% cash back on grocery store and wholesale club purchases and 3% cash back on gas purchases apply to the first $2,500 in combined purchases in these categories each quarter. After that, the base 1% earn rate applies to those purchases. ** You will qualify for $100 bonus cash rewards if you use your new credit card account to make any combination of Purchase transactions totaling at least $500 (exclusive of any fees, returns and adjustments) that post to your account within 90 days of the account open date. Limit one (1) bonus cash rewards offer per new account. This one-time promotion is limited to new customers opening an account in response to this offer. Other advertised promotional bonus cash rewards offers can vary from this promotion and may not be substituted. Allow 8-12 weeks from qualifying for the bonus cash rewards to post to your rewards balance. This credit card program is issued and administered by Bank of America, N.A. Visa and Visa Signature are registered trademarks of Visa International Service Association, and are used by the issuer pursuant to license from Visa U.S.A. Inc. ©2017 Bank of America Corporation CC050317 AR9PFNPT MB0317-AD-CAEDU On up to $2,500 in grocery/wholesale club/gas quarterly spend* cash back everywhere, every time cash back at grocery stores and wholesale clubs cash back on gas 1% 2% 3 % Learn more and apply today! Refer to Priority Code BAABGO 1.866.86 7 .6 3 2 3 newcardonline.com Earn more cash back for the things you buy most with the CTA Cash Rewards Visa Signature ® credit card. $100 cash rewards bonus if you make at least $500 in purchases in the first 90 days**