2014 News Releases

2014 News Releases

Overview
News release Ricardo Duran

President Signs Into Law Final $15 Million Payment to CalSTRS From Sale of Elk Hills Naval Petroleum Reserve
Proceeds support older retirees’ pension purchasing power

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System (CalSTRS) received its final $15.6 million payment of compensation from the 1997 sale of the Elk Hills Naval Petroleum Reserve as part of the $1.1 trillion budget appropriation bill signed into law today by the President.

News release Ricardo Duran

Majority Voting Standard Gains Ground, CalSTRS Corporate Governance Annual Report Shows
The 2nd annual report shows that 92 out of 100 companies engaged adopted majority voting

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System’s (CalSTRS) Corporate Governance 2014 Annual Report shows its engagement with small-cap companies yielded remarkable progress in the adoption of majority voting standards for the election of corporate directors.

The Corporate Governance 2014 Annual Report reflects four years of work with small-cap companies—those with a capitalization of $2 billion or less—to adopt the majority-vote standard. The standard requires directors to receive a majority of shareholder support to be elected to the board.

News release Gretchen Zeagler

CalSTRS Releases 8th Annual Green Initiative Task Force Report
Environmentally-focused strategies nearly triple green bond purchases

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System’s (CalSTRS) eighth annual Green Initiative Task Force 2014 Annual Report shows an almost 300 percent increase in green bond purchases within the Fixed Income portfolio. This year, the Teachers’ Retirement Board identified sustainable investing as a key, strategic priority, which is reflected in the report and other initiatives.

News release Gretchen Zeagler

U.S. Insurance Companies’ Response to Climate Change Impacts Investment Risks
CalSTRS says new report shows more action from the insurance sector is needed

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.

News release Ricardo Duran Charlotte Laurent-Ottomane

CalSTRS and The Thirty Percent Coalition Expand Campaign For More Women on Corporate Boards
The Thirty Percent Coalition is reaching out to Russell 1000 companies lacking women board directors.

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.

News release Gretchen Zeagler

CalSTRS Commits to Increase in Clean Energy and Technology Investments
Effort comes as sign of solidarity for climate change policy

Jack Ehnes

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes, announced plans to increase current clean energy and technology investments of $1.4 billion to $3.7 billion over the next five years in an effort to increase low-carbon investments. The move is in response to United Nations Secretary-General Ban Ki-moon’s call for bold action to reduce carbon emissions and build resilience to the impacts of climate change ahead of the United Nations Climate Summit on September 23, 2014. 

Statement Ricardo Duran

CalSTRS Statement on the Adoption of Creditable Compensation Regulations
Clarifies what can and cannot be credited to the defined benefit pension for hires before January 1, 2013

WEST SACRAMENTO, Calif. – The Teachers’ Retirement Board Thursday adopted regulations clarifying what forms of pay can and cannot be credited to California State Teachers’ Retirement System (CalSTRS) members’ defined benefit pension accounts. The regulations apply to members who were hired before the January 1, 2013 effective date of the California Public Employees’ Pension Reform Act. CalSTRS Deputy Chief Executive Officer Ed Derman issued the following statement.

News release Ricardo Duran

CalSTRS Gets Rapid Response to Board Diversity Effort
131 California companies with no women on their boards of directors receive offers of help

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System (CalSTRS), in collaboration with the California Public Employees’ Retirement System (CalPERS), sent the 131 California companies in their portfolios that lack women directors a letter offering their combined expertise to help diversify their boards.

News release Ricardo Duran

CalSTRS Names Lisa Blatnick Chief of Administrative Services
Executive position oversees organizational branch for workforce and process improvement

Lisa Blatnick

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) today announced the promotion of Lisa Blatnick to Chief of Administrative Services, an executive position focused, in part, on attaining business goals outlined in CalSTRS 2014-15 fiscal year business plan. Ms. Blatnick’s position was effective August 1, 2014.

News release Ricardo Duran

CalSTRS Opens Member Service Center in Irvine
The center offers Orange County CalSTRS members a full range of retirement services

Irvine Member Service Center building

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System (CalSTRS) today announced the Monday, June 30, opening of its Irvine Member Service Center. This is the fourth full-service member center, with other service centers in Santa Clara, Glendale and the CalSTRS Headquarters in West Sacramento. 

News release Ricardo Duran

CalSTRS Investment Officer Josh Diedesch Has a Banner Year
The Davis resident and UC Davis graduate is honored twice

Josh Diedesch

WEST SACRAMENTO, Calif. – One thing Josh Diedesch can say about his young career at the California State Teachers’ Retirement System (CalSTRS) – things happened quickly. Whether it’s exposure to a wide variety of investment tasks, getting a front-row seat to the global financial crisis and its aftermath, or getting noticed, he has had little time to react.

News release Ricardo Duran

CalSTRS Headquarters Wins Outstanding Building of the Year
Building now enters international competition scheduled for June

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System (CalSTRS) today announced that its West Sacramento headquarters building received The Outstanding Building of the Year (TOBY) Award in the ‘Corporate Facility’ class for the Pacific Southwest region. CalSTRS won the regional award over entries from Greater Phoenix, Nevada, Hawaii and other commercial buildings in California.

News release Michael Sicilia

CalSTRS Diversifies the Proactive Private Equity Portfolio
Two $100 million commitments to serve emerging and underserved markets

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System (CalSTRS) today announced the commitment of $200 million to diversify its Private Equity Proactive Portfolio, which reaches small, niche emerging managers including those in underserved domestic markets.

Statement Gretchen Zeagler

Statement on Joint Committee Hearing to Address CalSTRS Funding Needs
Annual Benefit Adjustment offers comparable offset to member contribution increase

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes issued the following statement on the joint informational hearing of the Assembly Committee on Public Employees, Retirement and Social Security and the Senate Committee on Public Employment and Retirement held April 9, 2014.

News release Gretchen Zeagler

CalSTRS Adopts 2013 Actuarial Valuation
Valuation reflects smaller than expected drop in funding from previous year

WEST SACRAMENTO, Calif. – The board of the California State Teachers’ Retirement System (CalSTRS) today adopted the actuarial valuation of the Defined Benefit Program as of June 30, 2013. The gap between current assets and the obligations facing the system—known as the unfunded actuarial obligation, or funding gap—has grown to $73.7 billion.

Statement Gretchen Zeagler

Statement on Joint Committee Hearing to Address CalSTRS Funding Needs
Earlier Action Reduces Overall Costs

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes issued the following statement on the joint informational hearing of the Assembly Committee on Public Employees, Retirement and Social Security and the Senate Committee on Public Employment and Retirement held March 19, 2014.

Statement Ricardo Duran

CalSTRS Expresses Sorrow at the Passing of CalPERS CIO Joe Dear
Mr. Dear’s passing leaves sadness at both public pension funds.

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System’s (CalSTRS) Chief Investment Officer Christopher J. Ailman expressed his sadness at the news of the February 26 passing of an esteemed colleague, Joseph A. Dear, Chief Investment Officer of the California Public Employees’ Retirement System. Mr. Ailman issued the following statement.

Statement Gretchen Zeagler

CalSTRS Statement on Assembly Public Employees, Retirement and Social Security Committee Hearing
First hearing addressing the CalSTRS long-term funding needs

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes and Deputy Chief Executive Officer Ed Derman testified before the Assembly Public Employees, Retirement and Social Security Committee hearing,  “Addressing the CalSTRS Long-Term Funding Needs: An Update of the SCR 105 Report.” The February 19 hearing marks the first in a series to assist legislative development of a funding policy to resolve the $71 billion CalSTRS funding shortfall.

Statement Gretchen Zeagler

CalSTRS Welcomes Swift Legislative Action to Bridge $71 Billion Funding Gap
Legislature signals constructive recognition of the need to stabilize CalSTRS funding

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) Chief Executive Officer Jack Ehnes issued the following statement on the Legislature’s announcement of a plan to move forward with legislation, to be amended in Assembly Bill 611, to close the $71 billion CalSTRS funding shortfall.

Statement Gretchen Zeagler

CalSTRS Encouraged by Administration’s Commitment to a Funding Plan

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System (CalSTRS) Chief Executive  Officer Jack Ehnes issued the following statement on the Administration’s commitment to a formal funding solution to close the $71 billion CalSTRS funding shortfall:

“Although no specific amount for CalSTRS funding was included in the proposed 2014-15 State Budget, language that commits the Administration to work with all parties toward a funding plan within 30 years brings promise that its adoption is on the horizon.