The funded status for the CalSTRS Defined Benefit Program rose to 76.7% as of June 30, 2024, according to the most recent actuarial valuation: an annual assessment of the Teachers’ Retirement Fund’s assets and liabilities. The funded status refers to the ratio of CalSTRS assets compared to its total financial liabilities.

This is greater than originally anticipated when the funding plan was adopted in June 2014. At the time, it was projected the funded ratio as of June 30, 2024, would be 69.2%, 7.5% less than the actual current funded ratio.

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 members. 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 seventh consecutive year the CalSTRS funded status has increased. The funded status has grown more than 14% (from 62.6% to 76.7%) since 2017.

Because of this success, CalSTRS 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 fourth 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, 2025, through June 30, 2026:

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