Description: This post provides an update on the progress of the California State Teachers’ Retirement System (CalSTRS) funding plan. The post: (1) describes the changes to unfunded actuarial obligation and contribution rates in 2021-22, based on the most recent actuarial valuation; (2) describes the potential effects of the 2020-21 investment returns; and (3) revisits the recommendations we raised in our March 2021 publication, Strengthening the CalSTRS Funding Plan, using the extreme volatility in investment returns to illustrate how those recommendations would strengthen CalSTRS’ ability to successfully pay down unfunded actuarial obligation—both the state’s share and employers’ share—by 2046.