The California State Teachers' Retirement System isn't keeping a close eye on pension spiking, according to a new audit of the state's second-largest pension fund. The review by state Controller John Chiang'soffice found CalSTRS, with more than 1,900 employer-members, averages just 40 audits per year.

Chiang's office also concluded that the fund needs more auditors and hasn't maximized technology to catch pension spiking.

The controller's auditors examined pay records for employees who received raises immediately before retirement from Pajaro Valley Unified School District in Santa Cruz County, the San Francisco and San Diego unified school districts, Santa Clara County's Foothill-De Anza Community College District and the Los Angeles County Office of Education.