Does a funding gap affect me?
Your defined benefit (your retirement benefit) is guaranteed and will remain unchanged. CalSTRS defined benefit program is guaranteed by law.

What is CalSTRS current unfunded actuarial obligation status?
CalSTRS Unfunded Actuarial Obligation was $20.7 billion as of June 2007. This figure does not include any liabilities incurred for future service or any assets received in the future.

What is an unfunded actuarial obligation?
Think of it as a projected shortfall. The amount represents the additional assets needed on the valuation date to meet the expected liabilities of the plan incurred from members’ past service.

Is it necessary to be 100 percent funded?
CalSTRS is a long-term investor with broad portfolio diversification. With a structured plan in place to handle the debt over time funding at 100 percent is not necessary. CalSTRS is funded at 88 percent as of the end of the 2007-2008 fiscal year.

How does CalSTRS funding situation compare to our peers?
CalSTRS' funding ratio of 88 percent is among the strongest pension funds in the nation according to a recent Pew Charitable Trusts report.

What is an actuarial valuation?
An actuarial valuation provides a snapshot of the fund's assets and liabilities over a 30-year period.

Why is an actuarial valuation necessary?
An actuarial valuation determines CalSTRS long-term ability to cover the benefits already earned by the members of the Defined Benefit Program.

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