I am pleased to present the Comprehensive Annual Financial Report of the California State Teachers' Retirement System for the fiscal year ended June 30, 2006. As we reflect on the past year, we can recount numerous challenges faced and met. CalSTRS remains committed to our mission of securing the financial future of California's educators.

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 2006 Comprehensive Annual Financial Report (PDF - 4 MB)

The PDF of the entire report is about 4.5 MB in size. If you do not need the complete contents, you can use the links below to download the individual section(s) you need.

Table of Contents (PDF - 85 KB)

Introduction (PDF - 2.4 MB)
The introduction contains the Chief Executive Officer's letter of transmittal, the administrative organization, the year in review and CalSTRS achievements and activities.

Financial (PDF - 294 KB)
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 (PDF - 458 KB)
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 (PDF - 1.1 MB)
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 (PDF - 578 KB)
The statistical section includes information on the CalSTRS Defined Benefit Program, Defined Benefit Supplement Program, Cash Balance Benefit Program and CalSTRS 403(b) Program.