Current Funding

Mar. 8, 2010 CalSTRS-ca
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The Teachers’ Retirement Board approved a Comprehensive Funding Strategy that will guide the long-term effort towards fully funding the Defined Benefit Program. While our investment income goes a long way to maintaining the health of our fund, providing about 60 to 63 percent of the benefits paid, the Board realized the need to take additional steps to close the funding gap.

Under California state law, the Defined Benefit Program receives contributions from members and employers set at a percentage of member’s earnings, plus state General Fund contributions. CalSTRS investment earnings finance the cost of administering the plan.


Board actions:

  • Communicating the funding shortfall facts to members, employers, Legislature and the Governor.
  • Raising the need to set predictable contribution rates within limits.
  • Moved to a more diversified investment mix.
  • Review CalSTRS investment assumptions in November 2010.