Darren over at Right on the Left Coast brings us an update on the safety of the California state teachers retirement system (CalSTRS)…
*Defined benefits, like yours with CalSTRS, can deliver the same level of retirement income to groups of employees at a lower cost than individual 401(k)-type accounts.
*Public Pensions Unfairly Blamed for Financial Woes
*…(D)efined benefit pension plans are better, more economical, and efficient.
*Remember, your defined benefit is safe. It’s mandated by law and guaranteed for your lifetime. Your pension is based on a formula, not on how much you’ve been able to invest as an individual.
As Darren notes…
This newsletter strikes me as the captain of the Titanic telling everyone that everything’s fine. It doesn’t offer any real facts. I am not reassured.
Remember it’s mandated by law and guaranteed for your lifetime. Yea, guaranteed by the state that can’t send it’s citizens their tax refunds. Wonderful.
