CalSTRS releases 2020-2021 sustainability report

The California State Teachers’ Retirement System (CalSTRS) has released its 2020-2021 Sustainability Report, outlining its investment-return progress as well as its transition to net zero, among other updates.

In terms of funding, the pension fund said its 27.19 percent investment return in 2020-2021 has improved projected funding levels. Full funding is now expected to occur in 2041, five years ahead of schedule under current actuarial assumptions.

The pension fund noted a period of low-investment returns could materially impact future funding levels and future unfunded actuarial obligations. Even if the probability of reaching full funding has improved over the last year, the risk of not reaching full funding by 2046 still is present and will never be fully eliminated. “We are better positioned today than 10 years ago to be able to react to and absorb the impact of a recession,” CalSTRS said in a statement.

In September 2021, the board adopted a pledge t