Educators, school employers, the California Legislature and the California State Teachers’ Retirement System (CalSTRS) have created the largest teacher pension fund in the nation. Since 1913, CalSTRS has delivered on promised benefits.
Since 2006, CalSTRS has communicated to members, employers and the Legislature about the projected funding shortfall or unfunded actuarial obligation (UAO). The shortfall is based on an actuarial valuation, which is a snapshot of the fund’s assets and liabilities.
CalSTRS is currently funded at 69 percent. Must CalSTRS be funded at 100 percent? A valuation is like a home mortgage—there isn’t a need to have all the money today, but we should have a solution in place to pay these benefits in the future.
CalSTRS is the nation's largest teacher pension fund with assets totaling just over $152.9 billion as of March 31, 2012. The investment portfolio is broadly diversified in domestic and international markets.
CalSTRS is governed by the Teachers’ Retirement Board, a group of 12 individuals who are appointed and elected. The California Constitution states that the “retirement board shall have the sole and exclusive fiduciary responsibility over the assets of the public pension or retirement system.” Read more »
