Key Takeaways
- • CalSTRS delivered a 13.9% net return on investments for fiscal year 2025–26, exceeding its 7.0% actuarial assumption and outperforming benchmarks, with the Teachers' Retirement Fund valued at $415.4 billion as of June 30, 2026.
- • The pension system's funded status reached 79.3% as of June 30, 2025, marking the eighth consecutive year of improvement and representing a 16.7 percentage point increase from 62.6% in 2017, positioning CalSTRS ahead of schedule to achieve full funding by 2046.
- • Long-term performance metrics remain robust: the 5-, 10-, 20-, and 30-year returns all exceed the 7.0% actuarial target, with the 10-year return at 9.4%, demonstrating resilience across multiple market cycles and economic conditions.
- • Private Equity posted preliminary net returns of 13.9%, while Real Estate contributed 7.6%, reflecting diversified asset class performance within the portfolio strategy.
Summary
The California State Teachers' Retirement System announced strong investment results for the 2025–26 fiscal year on August 4, 2026, reporting a 13.9% net return on its $415.4 billion Teachers' Retirement Fund. The return significantly exceeded CalSTRS' 7.0% actuarial assumption, the long-term performance benchmark required to meet the system's pension obligations to California's public school educators and beneficiaries.
CalSTRS' performance reflects consistent execution across multiple time horizons. The system's 5-, 10-, 20-, and 30-year returns all surpassed the 7.0% actuarial target, with the 10-year annualized return standing at 9.4%. This sustained outperformance occurred despite inflationary pressures, stock market volatility, and geopolitical uncertainty, underscoring the portfolio's structural resilience. Chief Investment Officer Scott Chan emphasized the organization's focus on "creating consistent, decades-long growth," signaling a disciplined approach to long-term value creation rather than short-term performance chasing.
The funded status—the ratio of CalSTRS' assets to total pension obligations—reached 79.3% as of June 30, 2025, marking the eighth consecutive year of improvement. This trajectory represents a 16.7 percentage point increase from the 62.6% funded status in 2017, meaningfully closing the gap toward full funding. The system is now ahead of schedule to achieve complete funding by 2046. Within the portfolio, asset class performance was led by Private Equity at 13.9% preliminary net returns, with Real Estate contributing 7.6%.
Chief Executive Officer Cassandra Lichnock characterized the results as "a significant step toward achieving full funding, which is vitally important to fulfilling our mission to secure the financial future of California's public school educators and their beneficiaries." The next comprehensive actuarial valuation of the Defined Benefit Program, which will include an updated funded status assessment, is scheduled for release in May 2027.
CalSTRS' performance reflects consistent execution across multiple time horizons. The system's 5-, 10-, 20-, and 30-year returns all surpassed the 7.0% actuarial target, with the 10-year annualized return standing at 9.4%. This sustained outperformance occurred despite inflationary pressures, stock market volatility, and geopolitical uncertainty, underscoring the portfolio's structural resilience. Chief Investment Officer Scott Chan emphasized the organization's focus on "creating consistent, decades-long growth," signaling a disciplined approach to long-term value creation rather than short-term performance chasing.
The funded status—the ratio of CalSTRS' assets to total pension obligations—reached 79.3% as of June 30, 2025, marking the eighth consecutive year of improvement. This trajectory represents a 16.7 percentage point increase from the 62.6% funded status in 2017, meaningfully closing the gap toward full funding. The system is now ahead of schedule to achieve complete funding by 2046. Within the portfolio, asset class performance was led by Private Equity at 13.9% preliminary net returns, with Real Estate contributing 7.6%.
Chief Executive Officer Cassandra Lichnock characterized the results as "a significant step toward achieving full funding, which is vitally important to fulfilling our mission to secure the financial future of California's public school educators and their beneficiaries." The next comprehensive actuarial valuation of the Defined Benefit Program, which will include an updated funded status assessment, is scheduled for release in May 2027.
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