WEST SACRAMENTO, Calif. – A new report from Ceres ranks the nation’s 330 largest insurance companies on their response to climate-related risks and finds a profound lack of preparedness. CalSTRS currently holds $4.3 billion of investments in the insurance sector, which represents 2.4 percent of the overall portfolio. CalSTRS believes that climate-related risks and opportunities can affect the performance of its investments.
WEST SACRAMENTO, Calif. – Institutional investors representing more than $3 trillion in assets under management, along with some of the nation’s leading women’s organizations, sent letters to 100 companies in the Russell 1000 Index that lack women on their boards of directors, urging them to embrace gender diversity.
WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System (CalSTRS) today announced it has received top honors for the portfolio’s 2013-14 performance from iiSEARCHES—Institutional Investor’s investment management, sales and marketing data service.
The Governmental Accounting Standards Board issued two new accounting standards that significantly change the way pensions are reported. Statement 67, Financial Reporting for Pension Plans, becomes effective for CalSTRS in fiscal year 2013-14. Statement 68, Accounting and Reporting for Pensions, becomes effective for plan employers in fiscal year 2014-15.
Among the specific issues identified for cost-sharing, multiple-employer plans, such as CalSTRS, is use of a blended discount rate. The new blended rate considers a long-term rate of return on plan assets, which reflects a pension fund’s long-term investment strategy, and a high-quality, non-taxable municipal bond index rate, to account for the potential need to borrow funds to pay pension benefits after net assets have been fully depleted.
Using this new blended discount rate may cause plans that are projected to run out of assets, like CalSTRS, to appear to have an increased unfunded liability. However, although the liability may be reported on a financial balance sheet as a new, significantly higher amount, the actual current shortfall of approximately $74 billion projected by CalSTRS will not change as a result of the new standards.
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