WEST SACRAMENTO, Calif. (May 22, 2019) – The California State Teachers’ Retirement System today announced that Global Equity Director June Kim has been selected as one of 22 Finance Leaders Fellows at the Aspen Institute, part of the Aspen Global Leadership Network. Fellows are nominated by a third party; each class of Fellows is made up of high-integrity, highly diverse individuals who have something to teach and to learn from the others.
WEST SACRAMENTO, Calif. (May 15, 2019) – The California State Teachers’ Retirement System today announced its acquisition of the majority interest in Fairfield Residential Company LLC from Brookfield Asset Management. Brookfield retained its interest in the investment manager of Fairfield’s affiliated real estate funds. Recently CalSTRS adopted a Collaborative Model for investments across all asset classes in its portfolio. This approach supports identifying and investing in strategic opportunities, such as the acquisition of real estate operating companies like Fairfield.
WEST SACRAMENTO, Calif. (May 9, 2019) – The Teachers’ Retirement Board today received the results of the actuarial valuation for the CalSTRS Defined Benefit Program as of June 30, 2018. The actuarial valuation provides a snapshot-in-time of the system’s financial health, in addition to monitoring the system’s funding status and its ability to meet long-term commitments.
With relief mixed with caution, we celebrate the remarkable 23.1-percent investment return, our highest in 25 years. CalSTRS ended the 2010-11 fiscal year with an investment portfolio valued at $154.3 billion. This is up $29 billion from last fiscal year, which posted a 12.2 percent investment return.
The CalSTRS Defined Benefit pension provides secure retirement income that our retired members and their beneficiaries rely on, but they’re not the only ones. Communities throughout the state also realize an economic benefit from the state’s nearly 214,000 retired educators.
The latest report from the Pew Center on the States looks at the funding levels of state public retirement benefits in 2009. The data sample, which was the basis of the study, was taken shortly after we reached the depths of the worst financial crisis since the Great Depression.
In the first of a four-part series, CalSTRS CEO Jack Ehnes talks about the constitutional guarantees around public pensions. He also discusses the management of CalSTRS as a trust fund and what that means for the state.
At its meeting earlier this month, the CalSTRS board adopted the actuarial valuation of the Defined Benefit Program as of June 30, 2010. The valuation is an annual “snapshot” of the fund’s financial condition.
Recent media reports have brought attention to the funding challenges facing CalSTRS. They inaccurately suggest, however, that CalSTRS is on the brink of running out of funds and cannot meet its obligations.
CalSTRS has ended the 2010 calendar year with its investments posting a 12.7 percent return. It marks back-to-back positive calendar year returns and boosts the market value of our investment portfolio to levels not seen since October 2008.
You have likely heard or read here that the Teachers’ Retirement Board has lowered several long-term actuarial assumptions, including the important investment return assumption. These changes increase CalSTRS projected long-term funding shortfall, but that only illustrates more clearly that the state must act to adopt a responsible funding solution.
The funding for your Defined Benefit pension is based on several economic assumptions. Among the most critical of these planning factors are the investment return assumption and the assumed inflation rate.
Some of you have expressed concern about the large number of Baby Boomers about to enter retirement and the impact that may have on CalSTRS. Some pension analysts and other pension reform pundits would have you believe that catastrophe is just around the corner, and public pension programs will soon exhaust their assets.
That can’t be farther from the truth at CalSTRS, and here’s why.
CalSTRS is committed to making our operations more transparent and keeping you informed about your CalSTRS benefits and any new developments that may be of interest to you. We want to ensure you have a number of resources and ways to stay connected to CalSTRS.
It was good to speak with active members during our recent Fall Webinar, Perspectives: CalSTRS 2011. Nearly 300 of you joined me online and over the phone as Deputy Chief Executive Officer Peggy Plett and I sorted through the facts and fiction about the security of your pension.
The best part of my job is meeting and listening to CalSTRS members. I’d like to personally invite you to attend the CalSTRS Perspectives 2011 Webinar tomorrow, Tuesday, Oct. 26 at 4 p.m. This time is especially designed for active members to get the facts and ask questions.
Deputy Chief Executive Officer Peggy Plett and I will separate fact from fiction surrounding your retirement benefit and the long-term funding status of CalSTRS. Expect about 15 minutes of presentation with 25 minutes for your questions.
Followers of pension funding issues in the media know there are plenty of stories and opinions out there. An ongoing challenge for our staff is to make sure that reported information is factual, and not based on inaccuracies or generalities. We do our best to correct errors as they appear.
Electronic privacy is crucial for the ongoing success of the Internet as a convenient means to provide customer service. Your personal information will be used only to conduct CalSTRS-related business.
The California State Teachers’ Retirement System website has been developed in compliance with California Government Code §11135, which requires that all electronic and information technology developed or purchased by the State of California is accessible to people with disabilities. There are various types of physical disabilities that impact user interaction on the web. Vision loss, hearing loss, limited manual dexterity, and cognitive disabilities are examples, with each having different means by which to access electronic information effectively.