The funded status for the CalSTRS Defined Benefit Program rose to 79.3% as of June 30, 2025, according to the most recent actuarial valuation, an annual assessment of the Teachers’ Retirement Fund’s assets and obligations. The funded status refers to the ratio of CalSTRS assets compared to its total actuarial obligations.

This is greater than originally anticipated when the funding plan was adopted in June 2014. At the time, it was projected the funded status as of June 30, 2025, would be 70.2%.

The valuation assessments guide the Teachers’ Retirement Board in determining whether adjustments to contribution rates for employers and the state are needed to keep the defined benefit plan on track.

The CalSTRS Defined Benefit Program is a traditional defined benefit plan that provides retirement, survivor and disability benefits to California’s public educators. A "defined benefit" retirement, as opposed to common "defined contribution" plans, such as a 401(k) or 403(b), features a guaranteed pension payment amount members will receive throughout their retirement.

This is the eighth consecutive year the CalSTRS funded status has increased. The funded status has grown by nearly 17 percentage points (from 62.6% to 79.3%) since 2017.

Pensions systems such as CalSTRS are designed to operate over decades, gradually paying out to members and beneficiaries throughout their lifespans. Not all the obligations are due at once.

Steady contributions from employers and employees replenish the fund—in addition to growth from the CalSTRS Investment Portfolio.

Because of this success, CalSTRS staff recommended, and the board agreed at its May meeting, to keep the employer and state contribution rates to the Teachers’ Retirement Fund at their current levels. This is the fifth consecutive year where those rates have not changed. Keeping these contribution rates at existing levels will maintain stability, improve funding levels and reduce risk in the event of future adverse investment outcomes.

Total contribution rates for July 1, 2026, through June 30, 2027, are:

• State: 10.828% 
• Employers: 19.1% 
• CalSTRS 2% at 60 members: 10.250% 
• CalSTRS 2% at 62 members: 10.205%