CalSTRS’ financial situation has improved slightly, but the state teachers’ pension system is still well short of being fully funded.
In its annual valuation, the California Teachers’ Retirement System said it was 68.5 percent funded as of last June, up from 66.9 percent the year before. The fund faces a $72.7 billion shortfall between its assets and its long-term obligations to members.
CalSTRS’ finances have been a major policy issue for years; the pension fund was clobbered by the 2008 market crash and was headed toward insolvency by mid-century. The Legislature approved a bailout in which the state and school districts will contribute billions more to CalSTRS to gradually raise the system to fully-funded status.
The higher contributions only took effect last July. The improvement in CalSTRS funding reported Thursday is a reflection of recent investment gains. The fund earned nearly 18.7 percent in its latest fiscal year, boosted mainly by gains in the stock market and private-equity investments.
“Funding status operates much like a measuring stick to track our progress,” said CalSTRS Chief Executive Jack Ehnes in a press release.
Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.