CalSTRS Benefit Payments Not Affected by State Cash Crisis
CalSTRS benefit payments are not affected by State Controller John Chiang’s recent announcement that some payments may be delayed.
Although Chiang said that cash shortages may force him to issue IOUs for some payments until the state budget difficulties are addressed, only certain expenditures from the state’s General Fund are affected by Chiang’s announcement. IOUs may not be used to pay benefit obligations.
While the Controller’s Office does process CalSTRS benefit checks, the source of those payments is the Teachers’ Retirement Fund. CalSTRS retirement, disability and survivor benefits will continue to be paid. The state also continues to make its contribution to the Teachers’ Retirement Fund.
CalSTRS Benefits Secure Despite Economy
CalSTRS benefits are secure, despite the ongoing challenges to the world’s financial markets. Current CalSTRS retirement, survivor and disability benefits will not change with the downturn in the economy.
CalSTRS benefits are not dependent on the funds in the CalSTRS investment portfolio. CalSTRS benefits are considered a constitutionally protected contractual right.
CalSTRS Investment Strengths
The CalSTRS investment portfolio is strong and built to withstand fluctuations in the financial markets.
- Diversified assets:
- U.S. stocks
- International stocks
- Bonds and other fixed income securities
- Real estate and private equity invested throughout the globe
- Patient, long-term investor who invests based on the long view
- A professional investment staff who use some of the best money managers in the world
CalSTRS Home Loan Program
The credit crisis has made home loans more difficult to obtain. The CalSTRS Home Loan Program offers competitive rates on a variety of mortgage loan programs for members who are refinancing or buying a home. For details, visit the Home Loan Program page.
- 403b Frequently Asked Questions
Information about 403b accounts and how they are affected by market fluctuations.