CalSTRS remains ahead of schedule in its goal of reaching full funding, according to the organization’s 2025 Review of Funding Levels and Risks report.

The report assesses the soundness and sustainability of the CalSTRS Defined Benefit Program and helps the board and CalSTRS stakeholders better understand how the CalSTRS Funding Plan is expected to achieve full funding by 2046.

Full funding means the Teachers’ Retirement Fund has enough money to cover the obligations associated with all future payments to CalSTRS members and beneficiaries.

This year’s report is based on the results of the June 30, 2024, Actuarial Valuation of the Defined Benefit Program, presented to the board in May 2025, and reflects the events that have taken place since the valuation.   

The report’s key findings include that the better-than-assumed investment return earned in fiscal year 2024–25 has helped keep CalSTRS ahead of schedule on its path to reach full funding. Additionally, the report projects that the Defined Benefit Program could reach full funding by 2043—three years ahead of schedule.

The CalSTRS Investment Portfolio earned an 8.5% net return on investments for the 2024–25 fiscal year, which was greater than the annual and long-term 7% goal.

According to the report, some key risks that can affect full funding include uncertain investment markets and potential membership and payroll decline.

Overall, the report demonstrates that, while risks remain that could impact future funding levels, CalSTRS is still in a financially strong position to withstand economic challenges on its path to reaching full funding by 2046.