An audit of the California State Teachers' Retirement System (CalSTRS) by Controller John Chiang, released September 5, found that the system does not adequately audit more than 1,900 reporting entities (including school districts), has missed opportunities to reduce instances of suspicious or unjustified salary increases, and has failed to adequately use existing electronic systems designed to identify cases of pension spiking.
"Starting with more rigorous auditing and better use of existing technology, CalSTRS must fortify its ability and resolve to crack down on those seeking unjust enrichment at the expense of their fellow educators and taxpayers," Controller Chiang said.
CalSTRS audits only 40 of the 1,900 entities, the controller found.
Some findings of the audit:
CalPERS Executive Officer Jack Ehnes said he agrees with the controller's recommendations to crack down on pension spiking.
September 7, 2012
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