The funded status for the Defined Benefit Program rose to 74.4% as of June 30, 2022, according to the most recent actuarial valuation, which is a snapshot of the fund’s assets and liabilities taken every year on June 30. The funded status refers to the ratio of CalSTRS' assets compared to its total liabilities.
These snapshots guide the Teachers’ Retirement Board in determining whether adjustments to contribution rates are needed to keep the defined benefit plan on track to reach full funding by 2046.
The CalSTRS Defined Benefit Program is a traditional defined benefit plan that provides retirement, survivor and disability benefits. A "defined benefit" retirement, as opposed to common "defined contribution" plans such as a 401(k) or 403(b), features a guaranteed pension payment amount members will receive throughout their retirement.
This is the fifth successive year CalSTRS’ funded status has increased. In 2017, it was 62.6%.
The board received the valuation results at the May meeting, which indicated the Defined Benefit Program was slightly ahead of schedule of the goal to be fully funded by 2046. The board voted to maintain the current supplemental state and employer contribution rates.