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CalSTRS says it earned 6.8% in investment returns last year

July 23, 2019

SACRAMENTO, Calif. (AP) — The country’s second-largest retirement system says it earned 6.8% on its investments last year.

The California State Teachers’ Retirement System says its goal is to average returns of 7% each year. The fund that covers more than 600,000 educators is valued at a record high of $236.9 billion. The system has 64% of the money it needs to pay benefits over the next few decades, leaving a gap of $107.2 billion as of June 30, 2018.

CalSTRS funding plan calls for the system to be fully funded by 2046.

Chief Investment Officer Christopher J. Ailman called it “a roller coaster year and a very challenging environment to generate returns.”

The most recent state budget provides an additional $5.1 billion to the system to reduce state and employer contribution rates.

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