Issue link: http://digital.copcomm.com/i/48466
continued from page 38 401(k)-style plans," says Maggie Ellis, chair of CTA's Retirement Committee on State Coun- cil. "That may be fun for some, but most edu- cators want to focus on teaching, and not on playing the stock market." Besides, Ellis notes, the State Teachers' Retirement System (CalSTRS) already offers a supplementary hybrid plan. For example, in order to prevent pension spiking, CalSTRS requires that the pay a high school history teacher may earn from extra coaching duties be placed into a separate supplemental defined- benefit plan that is then managed by CalSTRS. Converting the defined-benefit plan into a hybrid is not CTA's only concern. Aſter work- ing an average of 25 years in the profession, many educators are not thrilled with the aspect of working an additional seven years before they can receive their full retirement benefits. "Teaching is a difficult and demanding job. Although we have members who work more than 40 years, many of our members look forward to being able to retire at 60, aſter an entire career in public service — and they deserve to," Vogel says. "This is an area where we will disagree with the governor, and will work to change." Another proposal in the governor's plan requiring that retirement be based on the highest three years of compensation rather than the current highest year is also not nec- essary for CalSTRS since it already exists for educators who work less than 25 years. "This has been shown to be an effective tool for incentivizing educators to stay in the classroom longer, something that is desper- ately needed given the state's teacher shortage," Vogel says. The second-largest public pension fund in the country, CalSTRS has been providing retirement security to teachers since its incep- tion in 1913. Still, the economic downturn affecting the rest of the country has also had an impact on the retirement plan, resulting in a long-term funding shortfall. "What is needed now is a plan of action to address that long-term funding shortfall, and that's something only the Legislature and the governor have the authority to do. By bringing them together with stakeholders, we can come up with an appropriate adjustment without mak- ing such drastic changes to the entire system," Vogel says. "We're confident that can happen." By Dina Martin and Jennifer Baker November 2011 / www.cta.org 41