Business & Real Estate

CalSTRS’ funding gap grew amid poor investment returns

Jack Ehnes is the Chief Executive Officer at CalSTRS
Jack Ehnes is the Chief Executive Officer at CalSTRS Sacramento Bee file

CalSTRS said this week that its funding deficit grew by $3.5 billion last year despite a rescue plan approved by the Legislature.

The California State Teachers’ Retirement System said the gap between assets and long-term obligations increased to $76 billion in the 2014-15 fiscal year. That was the first year of the rescue plan, which includes higher contributions from the state, school districts and teachers.

CalSTRS’ financial condition depends in large part on its investment performance, and the portfolio recorded a gain of just 4.8 percent in 2014-15. That was below the 7.5 percent forecast by the pension fund.

Dale Kasler: 916-321-1066, @dakasler

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