I understand that CalSTRS is funded until 2043. What percent is CalSTRS funded?
The last actuarial valuation, a snapshot of the CalSTRS fund’s assets and liabilities, as of June 30, 2010, shows the fund is 71 percent funded. Another important number from the actuarial valuation is the amount of the funding shortfall. This difference between projected future assets and future benefit payments is currently $56 billion.
This last actuarial valuation showed that absent changes in contribution rates or liabilities, CalSTRS assets will be depleted by the early 2040s. If that happens, benefit payments would still be paid. However, as the plan sponsor, the State of California would be obligated to pay the difference between the benefits paid and the contributions received.
What’s needed is thoughtful action by the state to avoid increased costs and risks to the state General Fund. CalSTRS is working with the administration and Legislature to ensure they understand the issues and have the data they need to make informed decisions.