California Teacher Pension Gap Poses Risk, Auditor Says

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The California State Teachers’ Retirement System’s financing has declined below a prudent level and poses a “high risk” to the state, according to an audit.

The ratio of funding to obligations for the second-biggest U.S. pension fell to 67 percent in 2012 from 98 percent in 2001, “well below the 80 percent considered fiscally sound,” auditor Elaine Howle said in an annual report.