Fact Center

Fact Center

Overview

Separate fact from fiction, learn how CalSTRS is different from other public pension systems, and get other critical facts about CalSTRS and pension funding issues.

General Information

Economic Downturn Impact on Funding

CalSTRS unfunded actuarial obligation primarily resulted from lower than expected investment returns stemming from the 2008 global financial market collapse coupled with the 2001 dot com bust. In fiscal year 2009 alone, the fund experienced a 25 percent loss.

However, provisions in the CalSTRS Funding Plan (AB1469, Bonta) have considerably increased the likelihood of CalSTRS reaching full funding while reducing the risk of a low funded status or even running out of money.