CalSTRS Falls Short of Investment Goal

The nation’s largest teachers’ pension fund has once again fallen short of its 7% investment return goal. On Monday, the California State Teachers’ Retirement System (CalSTRS) reported a 3.9% return for the last fiscal year.

For two consecutive years now, the fund has fallen short of its goal. But last year it came close, managing a 6.8% return.

Then came the pandemic.

“We have never seen the level of volatility the U.S. and global financial markets exhibited over the short period from late February to May,” said CIO Christopher J. Ailman, as quoted by the Sacramento Bee. “CalSTRS adopted quickly and rose to the occasion during a year when the entire world has been called upon to go above and beyond.” 

Teacher contribution rates have already been growing and COVID-19 is now weighing heavily on investments. In April, the superintendents of five school districts asked the state to freeze contributions at 2019 levels.

Currently, CalSTRS is funded at just 64%.


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