Update on the Progress of the CalSTRS Funding Plan

Nov 18, 2021 - Longer Term, UAO and Contribution Rates Will Vary Based on Many Factors. Importantly, UAO is impacted by factors beyond investment returns —such as payroll growth and demographic trends —and new UAO may accrue in future years.
https://lao.ca.gov/Publications/Report/4475

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - Funding plan provisions are set to expire in 2046, meaning accrued UAO and future losses become increasingly difficult to address as CalSTRS ’ time horizon to do so decreases. UAO = unfunded actuarial obligation.
https://lao.ca.gov/Publications/Report/4400

Unfunded liabilities grow, system says. Billions more of annual funding eventually needed.

Apr 1, 2011 - Due to the near-collapse of world financial markets in 2008, CalSTRS and other pension systems sustained heavy losses, and the continued recognition of those losses is the major driver of the system ’s growing UAAL/UAO reports.
https://lao.ca.gov/Recommendations/Details/396

Unfunded liabilities grow, system says. Billions more of annual funding eventually needed.

Apr 1, 2011 - Due to the near-collapse of world financial markets in 2008, CalSTRS and other pension systems sustained heavy losses, and the continued recognition of those losses is the major driver of the system ’s growing UAAL/UAO reports.
https://lao.ca.gov/Recommendations/Details/395

^[PDF] With the aim of fully eliminating the Defined Benefit Program’s

With the aim of fully eliminating the Defined Benefit Program’s unfunded actuarial obligation (UAO) by 2046, the funding plan divides responsibility for UAO between the state and employers, and increases CalSTRS’ authority to adjust required contribution rates to meet the plan’s goal.
https://lao.ca.gov/reports/2021/4400/Strengthening-CalSTRS-031021.pdf