Update on the Progress of the CalSTRS Funding Plan

Nov 18, 2021 - Specifically, when CalSTRS’ assets return more than the actuarially assumed 7 percent, theoretical assets assigned to the state increase more than CalSTRS’ real assets, and the state’s share of UAO decreases significantly.
https://lao.ca.gov/Publications/Report/4475

A Review of the CalSTRS Funding Plan: State’s Future Responsibility for CalSTRS Uncertain

Feb 2, 2016 - Because theoretical assets that determine the state’s share of the unfunded liability fluctuate more than real world assets and because the state’s share of the unfunded liability ($15 billion) is much smaller than the district share ($58 billion), the state share will be relatively sensitive to changes in assets.
https://lao.ca.gov/Publications/Report/3336

CalSTRS Funding: An Update

May 5, 2017 - Theoretical Assets Makes State Share Relatively Volatile. Because theoretical assets that determine the state ’s share of the unfunded liability fluctuate more than real world assets, the state share is relatively sensitive to changes in assets.
https://lao.ca.gov/Publications/Report/3662

A Review of the CalSTRS Funding Plan: Theoretical Investment Gains Have Shifted Unfunded Liabilities to Districts

Feb 2, 2016 - Had less generous benefits been paid to members and had more contributions been made to the investment fund, CalSTRS would have had more assets. The calculation tries to capture these effects. That is, the calculation reflects a fictional investment portfolio that has more assets than CalSTRS’ real world portfolio.
https://lao.ca.gov/Publications/Report/3334

CalSTRS Funding Update

Jul 19, 2018 - Figure 1 a Reflects actuarial value of assets. b Ratio of the system ’s assets to its liability. Most of the Responsibility for the Higher Unfunded Liability Assigned to the State. The CalSTRS funding plan uses a complex mechanism for apportioning responsibility for the unfunded liability between districts and the state.
https://lao.ca.gov/Publications/Report/3873

A Review of the CalSTRS Funding Plan: Background

Feb 2, 2016 - A pension system is fully funded when assets are sufficient to cover benefits already earned by employees and retirees. Aiming to keep a pension system fully funded is crucial to reducing long-term pension costs.
https://lao.ca.gov/Publications/Report/3332

Volatility of the Personal Income Tax Base

Feb 8, 2017 - A capital gain is the difference between the selling price of an asset (stock, bond, building, etc.) and the asset ’s original purchase price. Asset sales are not included in BEA ’s estimates of personal income or output.
https://lao.ca.gov/Publications/Report/3548

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - The R ‑TACs have provided a wide range of technical assistance to schools, including assisting in conducting asset mapping and community needs assessments and offering communities of practice, where groups of schools implementing the model can share best practices.
https://lao.ca.gov/Publications/Report/5131

A Review of the CalSTRS Funding Plan: Recent Policy Change Increases District Rates

Feb 2, 2016 - Because the funding plan ’s key calculation makes the district share relatively insensitive to changes in assets, the bulk of added unfunded liabilities under this scenario would instead be assigned to the state.
https://lao.ca.gov/Publications/Report/3338

A Review of the CalSTRS Funding Plan: Treatment of Teacher Contributions Also Increase District Unfunded Liabilities

Feb 2, 2016 - Our third post explained how theoretical asset gains have increased the school and community college district share of CalSTRS’ unfunded liabilities. Below, we continue this discussion by describing how CalSTRS’ treatment of teacher contributions has also increased the district share.
https://lao.ca.gov/Publications/Report/3335