I am pleased to present the Comprehensive Annual Financial Report of the California State Teachers' Retirement System for the fiscal year ended June 30, 2004. This year we highlight our recent advances to actively seek our members' opinions on how we can better serve them. Throughout this report are examples of the feedback we have received and our commitment to our members. The compilation of this comprehensive annual financial report reflects the combined effort of CalSTRS staff under the leadership of the Teachers' Retirement Board. I commend their efforts on creating another outstanding report. In addition, I take this opportunity to express my gratitude to the staff, advisors and the many other people and organizations who have worked so diligently to assure the successful operation of the California State Teachers' Retirement System. Jack Ehnes Chief Executive Officer

This report may be downloaded and printed as one complete file or by individual sections for your convenience.

The 2004 Comprehensive Annual Financial Report

The entire report in one file is about 2.0 MB in size. If you do not need the complete contents, you can use the links below to download just the section(s) you need.

Table of Contents

Introduction

The introduction contains the Chief Executive Officer's letter of transmittal, the administrative organization, the year in review and CalSTRS achievements and activities.

Financial

The financial section includes the report of the independent auditor, the Management's Discussion and Analysis, the system's financial statements and supplemental information for the State Teachers' Retirement Plan and CalSTRS Voluntary Investment Program.

Investments

The investment section contains a consultant's report summarizing investment activity, an explanation of investment policy, portfolio performance information and various investment schedules for the State Teachers' Retirement Plan. Investment of the Defined Benefit Supplement and Cash Balance Benefit programs contributions are also discussed. Investment information is not included for the CalSTRS Voluntary Investment Program since all investments are member-directed into mutual funds.

Actuarial

The actuarial section includes the actuary's certification letters and summaries for the CalSTRS Defined Benefit, Defined Benefit Supplement and Cash Balance Benefit programs, in addition to the results of the latest actuarial valuations.

Statistical

The statistical section includes information on the CalSTRS Defined Benefit Program, Defined Benefit Supplement Program, Cash Balance Benefit Program and CalSTRS 403(b) Program.