Happy Holidays!
Misleading Narrative: Faculty retirement, in the form of STRS, has been a big problem for the District this past year, and faculty is responsible.
Facts:
The contribution that the District makes to CalSTRS is set by the state.
CalSTRS contributions are NOT a negotiated item.
As of July 1, 2019, the District is contributing 17.10% (a .82% increase over the year before).
This is a lower amount than had initially been set for this academic year. See CalSTRS state directive here.
Faculty also pay into STRS, at a rate of 10.25%.
Between the 2018-2019 budget and the adopted 2019-2020 budget, CalSTRS cost to the District increased by $459,619. It is also worth noting here that in the 2018-2019 adopted budget, the District overestimated their CalSTRS costs by almost $400,000. If that occurs this year too, there will be no substantial increase. See budgets here.
The state has been increasing their contribution to the state’s retirement system by giving the District funds “on behalf” of the state and geared toward STRS.
This problem is statewide and not unique to Palomar.
CFT believes the state “on behalf” money will be continued in coming years. Our state union is lobbying on the issue as well.
Bottom Line: Increases in CalSTRS contributions is a situation all colleges in California face. It is not something unique to Palomar. The state is working on solutions that our faculty can influence by contacting their representatives, but cannot directly negotiate.