The longer it takes to adopt a responsible funding strategy, the
more the costs rise and risk to the state General Fund increases.
If CalSTRS does run out of money, the state, as the plan sponsor,
will be obligated to ensure payment of the difference between the
benefits paid and the contributions received.
Absent any changes in contribution rates or liabilities, current
projections show the fund will deplete its assets by as early as
2046. Acting to increase contributions in 2015 in order to fully
fund the program over the following 30 years would translate to
an additional 14.3 percent of payroll or a projected $4.1 billion
in the first year.
The Legislature and the Governor Must Address the CalSTRS Funding
Strategy – the CalSTRS Board Cannot
The contributions paid by CalSTRS members and their employers are
sufficient to cover the normal costs of the benefit program, but
the impact of two major financial downturns in less than 10 years
resulted in significant investment losses.
The current shortfall of approximately $74 billion is based on an
actuarial valuation, a snapshot of the CalSTRS fund’s assets and
liabilities as of June 30, 2013. That valuation shows the plan is
about 67 percent.
Through Senate Concurrent Resolution 105 a Long-Term Funding Plan
for CalSTRS is Possible
The resolution encouraged CalSTRS to collaborate with affected
stakeholders to develop at least three funding strategy options
and submit them to the Legislature by early 2013. CalSTRS
submitted its report of possible funding strategies to the
Legislature as requested by the resolution on February 14, 2013.
CalSTRS is hopeful legislation will be enacted soon.
Electronic privacy is crucial for the ongoing success of the
Internet as a convenient means to provide customer service. Your
personal information will be used only to conduct CalSTRS-related
WEST SACRAMENTO, CA – The California State Teachers’ Retirement
System (CalSTRS) today announced that, effective January 1, 2014,
CalSTRS Retirement Progress
Reports (RPR) will be available exclusively online, unless a
paper version is requested. The change is enacted under
Assembly Bill 989.