CalSTRS Adopts Actuarial Valuation
Snapshot of fund’s assets and liabilities shows Defined Benefit Program is 78 percent funded.

News release

WEST SACRAMENTO, CA – Board members of the California State Teachers’ Retirement System (CalSTRS) today adopted the June 30, 2009 actuarial valuation of the Defined Benefit Program.

The valuation serves as a determination of the fund assets and liabilities. It shows an unfunded obligation of $40.5 billion, an increase of $18 billion from the June 30, 2008 valuation, and a funded ratio of 78 percent, a decrease of 9 percent from last year.

The increase in the unfunded obligation was caused chiefly by historic investment declines of 25.4 percent during the 2008-2009 fiscal year, according to Milliman, CalSTRS Consulting Actuary, which presented the analysis.

The California State Teachers’ Retirement System, with a portfolio valued at $134 billion, is the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 848,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.