A message to CalSTRS members from CEO Cassandra Lichnock and CIO Scott Chan

April 9, 2025

Given the current uncertainty in global markets and economies, we want to take a moment to share some information about CalSTRS and provide you assurance that your pension is secure.

As your chief executive officer and chief investment officer, we can guarantee that CalSTRS has prepared for these challenges and is ready to navigate uncertainty. We have served public school educators since our inception in 1913. And in that 112-year period we have weathered many storms, including deep recessions and even wars, never missing a payment.

Your retirement benefit is stable because it is guaranteed based on a formula in state law. In other words, your retirement benefit won’t decrease due to economic or market volatility.

We work tirelessly to serve our mission, which is to provide you and your beneficiaries a secure retirement. CalSTRS is a long-term investor with a goal to achieve an average annual return of 7.0%. To reach this goal, the Teachers’ Retirement Fund is invested in many different assets, regions, industries, and companies to take advantage of opportunities and minimize risk. Our diversified portfolio and disciplined rebalancing approach are designed to achieve our long-term financial goals in boom times, as well as in recessions, bear markets, and crises. Our investments team regularly positions the assets of the fund to respond to market conditions and opportunities. An example would be increasing investments in more stable assets like bonds and cash that help protect against downturns. This diversified approach has proven successful, and our 30-year average return is 8.1%.

We are grateful to you for dedicating your career to our children and California’s students. We know how important you are to our community, and we will continue to do everything in our power to secure your future. It is an honor to help provide for your retirement.

Cassandra Lichnock, Chief Executive Officer

Scott Chan, Chief Investment Officer