Scare tactics

EDITOR: David Crane ("New California pensions pay for taxes, not schools," Close to Home, Wednesday) uses scare tactics and inaccurate information when addressing teacher pensions. Crane never mentions that CalSTRS was fully funded in the late 1990s and early 2000s. Its current funding level of 69 percent reflects the final year of averaging in the terrible losses from 2008. Next year's valuation will be higher.

In fiscal year 2009-10, CalSTRS earned 12.2 percent, and the fund earned 22 percent in 2010-11. Over the past 20 years, CalSTRS has averaged an annual investment return of 8.2 percent, higher than the 7.5 percent return assumption it is using.

Crane's assertion about new taxes going for pensions is misleading as well. Pensions are part of a total compensation package, which is negotiated in good faith. New taxes will go for expenses for school districts including supplies, utilities and, yes, employee compensation, but those funds won't be earmarked just for pensions.

Instead of labeling pensions and the workers who have earned them as the "problem" with the state budget, perhaps we should be grateful for the economic impact pensions have. According to Pensionomics 2012, a report by the National Institute for Retirement Security, retirees' spending pensions added more than $1 trillion to the national economy.

Let's focus on the real issue - ensuring a secure retirement for all workers.

JOY ZINDELL

Santa Rosa