ST. LOUIS — The retirement system for most public school teachers in Missouri is looking at an option that would reduce benefits for future teachers as a means of dealing with an increasing gap in funding.
The St. Louis Post-Dispatch reported Wednesday that officials say something must be done to pay for the pensions already promised to current teachers and retirees.
The problem is the stock market collapse of 2008 that resulted in a loss of $5.3 billion in assets held by the Public School Retirement System of Missouri. Investments gained ground last year, but revenue is still short of covering liabilities.
The system provides the pension for about 80,000 educators and 44,000 retirees in Missouri. Every public school district except St. Louis and Kansas City participates, as do most community colleges.