California State Teachers Retirement System (CalSTRS)
public plan · State of California · West Sacramento, CA
At 73% funded, California State Teachers Retirement System (CalSTRS) is in the underfunded bracket. The gap to full funding is $118.0B, an amount that takes years of disciplined contributions to close even with cooperative market returns.
California State Teachers Retirement System (CalSTRS) is a public-sector pension plan sponsored by State of California — covering government employees (state, local, or special-district workers). Public plans are not ERISA-governed and not PBGC-insured; they rely on state-level oversight and tax-base solvency. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.
On scale, California State Teachers Retirement System (CalSTRS) is a mega-plan: $318.0B in assets serving 985,000 participants (505,000 active, 480,000 retired). Plans this large dominate the U.S. pension landscape and carry concentrated solvency risk. Active and retired participants are roughly balanced (505,000 active, 480,000 retired). The plan is in a steady-state cash-flow phase where new accruals offset benefit payments. Annual cash flows: $18.4B in sponsor contributions versus $19.8B in benefit payments. Investment performance over the most recent year ran 6.2%, against the plan's assumed long-term return of 7.0%.
PBGC risk classification: moderate. The plan's funded status puts it under enhanced monitoring but not active intervention. Public plans like California State Teachers Retirement System (CalSTRS) are not PBGC-insured. The benefit guarantee rests on the sponsoring government's ability and willingness to make required contributions, which interacts with state and local tax-base dynamics.
Source: DOL EFAST2 Form 5500 filings and Boston College CRR Public Plans Database.
Funding History
What This Means for You
California State Teachers Retirement System (CalSTRS) is in good financial health at 73% funded. This means for every dollar the plan owes in future benefits, it has 73 cents in assets to cover it. As a public pension, benefits are typically backed by the taxing authority of the sponsoring government. Participants in this plan have relatively low risk of benefit reductions.
Year-by-Year Funding
| Year | Assets | Liabilities | Funding Ratio | Contributions |
|---|---|---|---|---|
| 2023 | $318.0B | $436.0B | 72.9% | $18.4B |
| 2022 | $308.5B | $447.0B | 69.0% | $17.8B |
| 2021 | $298.9B | $415.2B | 72.0% | $17.3B |
| 2020 | $289.4B | $438.5B | 66.0% | $16.7B |
| 2019 | $279.8B | $417.7B | 67.0% | $16.2B |
Frequently Asked Questions
California State Teachers Retirement System (CalSTRS) is 73% funded, meaning it has 73 cents in assets for every dollar in future benefit obligations. This is below the 80% threshold actuaries consider healthy, and may require increased contributions.
California State Teachers Retirement System (CalSTRS) has 985,000 total participants, including 505,000 active employees and 480,000 retirees currently receiving benefits.
California State Teachers Retirement System (CalSTRS) is not covered by the PBGC. Benefits depend entirely on the plan's assets and the sponsor's ability to fund it.
The Pension Health Score (0-100, A-F) measures a pension plan's financial strength based on funding ratio (50%), funding trend over 3 years (30%), and PBGC risk level (20%). Higher scores indicate more secure retirement benefits.
Pension Health Score is calculated from funding ratio, 3-year funding trend, and PBGC risk classification.