June 2, 2004

Sacramento, CA – The California State Teachers’ Retirement System announced today that it has selected Pension Consulting Alliance, Inc. as its general consultant to assist the Investment Committee with the oversight of the investment portfolio. The firm was awarded a five-year contract after the CalSTRS Investment Committee listened to presentations from three finalist firms.

Allan Emkin, the lead consultant for PCA, has served as the general investment consultant to CalSTRS for the past 19 years.

“PCA is well-regarded in the investment consultant industry,” said Christopher J. Ailman, CalSTRS’s Chief Investment Officer. “We were looking for a firm that had both high-quality investment research and a capable senior investment team. Through the years, Allan and his team have proven that they possess both. PCA has served the Board and System well over the years and the Board wants to continue that successful relationship.”

The firm will be responsible for providing oversight and advice to the Investment Committee on the total CalSTRS investment portfolio, policies and activity; conducting asset allocation studies; review and evaluation of all CalSTRS’s investment activity; and providing a comprehensive semi-annual review of investment performance, among other duties.

PCA was selected through a competitive process due to the pending expiration of its current contract with CalSTRS. A request for proposals issued in February 2004 garnered responses from seven firms, from which the three finalists were selected. The new consulting contract will begin July 1, 2004, and run three years with two one-year extensions.

With $113.2 billion in assets, CalSTRS is the third-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California’s public school teachers from kindergarten through community college, serving more than 735,000 members and their families.