From Laura Ecklar, June 21, 2011
Dear Ms. Bracy:
I understand that there is a posting on your Web site regarding comments recently made by Sen. Faber in a letter to a constituent. Below is information we recently sent to a member who inquired about these comments. You may find it helpful. Thank you.
Michael Nehf, our executive director, has asked that I respond to your e-mail regarding Sen. Faber’s recent comments. In our review of pension contribution shifts proposed by the Legislature and their impact on the Retirement Board’s proposed plan, a 15% member/12% employer pension contribution scenario, plus the board’s other recommended changes, results in a 30.5-year funding period. A 12% member/12% employer pension contribution scenario, plus the other recommended changes, results in a 45.6-year funding period due to a 3% lower pension contribution rate and larger member refund values due to shifting 2% of current contributions to members.
We have been communicating this information to our members via our e-mail news service and postings on our Web site…the most recent being on Wednesday, June 15. I hope this information is helpful to you. Thanks.
Director, Communication Services [STRS]
[View Sen. Faber's comments here.]