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

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Under the California Constitution, the CalPERS Board has plenary authority and fiduciary responsibility to invest the pension system ’s assets. The returns on these invested assets constitute the largest funding source for the system.
https://lao.ca.gov/Publications/Report/4887

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

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

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - Pension Fund Assets . The accumulated contributions of the state, employers, and members, in addition to investment returns, that can be used to pay benefits. Assets can be measured in terms of their actuarially determined value or their market value.
https://lao.ca.gov/Publications/Report/4400

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - One way to measure this volatility is to use the “asset volatility ratio, ” which is equal to the market value of assets divided by the annual covered payroll. Another way to measure this volatility is to use the “liability volatility ratio, ” which is equal to the accrued liability of the plan divided by the plan ’s annual covered payroll.
https://lao.ca.gov/Publications/Report/4920

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists)

Jul 14, 2025 - This is six years earlier than other bargaining units and four years earlier than the 2046 date when the Legislature will be able to use the assets in the trust to pay for benefits. Under the proposed agreement, no contributions would be made to prefund the benefit for two years.
https://lao.ca.gov/Publications/Report/5064

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - The second is payments towards the “unfunded liability. ” An unfunded liability exists when actuaries determine that there are insufficient assets to fully fund the benefit earned by employees in the past.
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 12 (Craft and Maintenance)

Jun 27, 2025 - As of June 30, 2023, the state and Unit 12 have set aside $328.7 million in assets to prefund the benefit and the unfunded liability associated with Unit 12 is $2.8 billion. The most recent actuarial valuation of Unit 12 retiree health benefits (as of June 30, 2023) estimates that the Unit 12 funding plan is on track to fully fund Unit 12 retiree health benefits by 2047.
https://lao.ca.gov/Publications/Report/5060