CalSTRS

Teachers' Retirement Board
Agency overview
Formed1913
Headquarters100 Waterfront Place, West Sacramento, California
38°35′04″N 121°30′34″W / 38.584426°N 121.50948°W / 38.584426; -121.50948
Agency executives
  • Cassandra Lichnock, CEO
  • Harry M. Keiley, Chair
Parent agencyCalifornia Government Operations Agency
WebsiteCalSTRS.com

The California State Teachers' Retirement System, branded as CalSTRS, provides retirement, disability, and survivor benefits for California's 965,000 prekindergarten through community college educators and their families.[1] CalSTRS was established by law in 1913, and is part of the State of California's Government Operations Agency. As of September 2020, CalSTRS was the largest teachers' retirement fund in the United States. CalSTRS was also the 11th-largest public pension fund in the world.[2] As of June 30, 2025, CalSTRS managed a portfolio worth $367.7 billion.[3]

Membership

CalSTRS members, as of June 30, 2019, included employees of approximately 1,778 employers:[4]

  • School districts
  • Community college districts
  • County offices of education
  • Regional occupational programs

Teachers' Retirement Fund

The Teachers' Retirement Fund is a special trust fund established by law that holds the assets of the following programs:

The assets come from contributions by members, employing school districts, investment earnings and appropriations from the State of California's General Fund.[1] The fund's investments create a stream of income to add to those assets.

The CalSTRS investment portfolio includes companies' shares, bonds, real estate and short-term investments.

Finances

As of June 30, 2022, CalSTRS managed a portfolio worth approximately $348 billion and held approximately $48 billion of liabilities, leaving a net pension position of $300 billion at that date.[5]

Governance

The Teachers' Retirement Board is responsible for maintaining the Teachers' Retirement Fund in order to pay benefits to CalSTRS members and their survivors.

Teachers' Retirement Board

The Teachers' Retirement Board sets policies, makes rules for and administers CalSTRS. The Board is also responsible for ensuring benefits are paid by the system in accordance with law.

The 12-member Teachers' Retirement Board is made up of:[6]

Executive staff

In February 2002, the board appointed Jack Ehnes as chief executive officer of CalSTRS to administer the system consistent with the board's policies and rules.[7]

In addition, Christopher J. Ailman served as chief investment officer of CalSTRS since October 2000, directing the system’s investments in accordance with Teachers’ Retirement Board policy. He stepped down in 2024.[8][9]

In June 2021, Ehnes retired from the position[7], and chief operating officer Cassandra Lichnock filled the position.

Advisory committees

Two advisory committees meet regularly to provide forums for active participation in the formation of CalSTRS policies and procedures. The Employer Advisory Committee is composed of county and district employer representatives and CalSTRS staff and meets quarterly, and the Client Advisory Committee includes CalSTRS staff and members from various organizations representing CalSTRS members and benefit recipients and meets regularly coinciding with Board meeting dates.

Operations

Like other large pension plans, CalSTRS had previously announced its proxy-vote intentions on selective companies. The addition of online disclosure opens the process to all CalSTRS portfolio companies, allowing other shareholders to know how the pension fund will vote.

As of May 2009, CalSTRS held stock in over 3,800 North American companies.[10]

Shareholder activism

After the December 14, 2012 Sandy Hook Elementary School shooting, California's treasurer, Bill Lockyer, considered ordering CalSTRS to eliminate investments in gun manufacturers.[11] On January 9, 2013, the Teachers' Retirement Board Investment Committee directed staff to "begin the process of divestment from firearm companies that manufacture weapons that are illegal in California", and CalSTRS divested from Sturm Ruger and the American Outdoor Brands Corporation, (formerly Smith & Wesson).[12][13]

In January 2018, CalSTRS issued a public letter to Apple Inc. alongside JANA Partners, LLC called "Think Differently About Kids". The letter encouraged Apple to find new ways to limit the effects of smartphone use on children.[14]

CalSTRS is among the signatories of the "Principles for a Responsible Civilian Firearms Industry," which seeks to engage firearms manufacturers, dealers, and retailers in promoting gun safety.[15][16][17]

Since the mid-2010s, activists have increasingly called for CalSTRS to cut financial ties with fossil fuel companies.[18][19][20][21][22] In 2015, Kevin de León introduced CalSTRS and CalPERS coal divestment legislation and the California Democratic Party passed a resolution in support of fossil fuel divestment.[23][24] Kevin de León's bill passed and CalSTRS was required to sell all holdings in companies that received at least 50% of their revenue from thermal coal.[25] State Senator Lena Gonzalez introduced broader fossil fuel divestment legislation in February 2022.[26][27][28] The CalSTRS board opposed this legislation.[29] It passed the California State Senate but was halted in the assembly by Jim Cooper.[30][31][32] As of 2022, CalSTRS has about $4.1 billion invested in oil and gas companies.[18]

Headquarters

The CalSTRS headquarters building in West Sacramento opened in June 2009 and is designed to serve members through 2049. It was built to address membership growth, changing retirement needs, and goals for greater efficiency and sustainability. The building cost $266 million and is a 13-story office tower above two levels of public space.[33] It is part of the Sacramento Riverfront Master Plan.[34]

The CalSTRS headquarters was designed to meet LEED Gold standards and includes several sustainability features. These include water-efficient systems, recycled construction materials, locally sourced materials, and building design that maximizes natural light. In October 2011, the building received LEED Platinum certification for Existing Buildings: Operations and Maintenance.[35]

See also

References

  1. ^ a b "CalSTRS at a Glance" (PDF). CalSTRS. Archived from the original (PDF) on October 17, 2020. Retrieved November 20, 2020.
  2. ^ "Global top 300 pension funds". Thinking Ahead Institute. Archived from the original on October 23, 2020. Retrieved November 20, 2020.
  3. ^ "CalSTRS earns 8.5% net return, exceeds benchmark in fiscal year 2024–25". CalSTRS. Archived from the original on January 25, 2026. Retrieved March 4, 2026.
  4. ^ "Comprehensive Annual Financial Report". CalSTRS. Retrieved November 20, 2020.
  5. ^ "CalSTRS Annual Comprehensive Financial Report 2022" (PDF). Archived from the original (PDF) on November 25, 2023. Retrieved November 25, 2023.
  6. ^ California Education Code § 22200
  7. ^ a b "Jack Ehnes". CalSTRS. Archived from the original on November 9, 2025. Retrieved March 4, 2026.
  8. ^ "Ailman praised for tenure as CIO in final board meeting". CalSTRS. Retrieved March 4, 2026.
  9. ^ Ailman, Christopher J. "About Chris Ailman". Ailman Advisers. Archived from the original on January 13, 2026. Retrieved March 4, 2026.
  10. ^ "CalSTRS Improves Proxy Vote Transparency" (Press release). CalSTRS. May 28, 2009. Archived from the original on September 16, 2013. Retrieved September 13, 2013.
  11. ^ Hsu, Tiffany (December 17, 2012). "Gun company's shares are in line of fire". Los Angeles Times. Archived from the original on April 13, 2013. Retrieved September 13, 2013.
  12. ^ "CalSTRS Statement on its Decision to Divest of Certain Firearms Holdings" (Press release). CalSTRS. January 9, 2013. Archived from the original on January 14, 2013. Retrieved January 14, 2013.
  13. ^ Noguchi, Yuki (February 26, 2018). "Pension Funds Under Pressure To Sell Off Investments In Gun-Makers". All Things Considered. NPR. Archived from the original on April 3, 2019. Retrieved April 2, 2019.
  14. ^ Benoit, David (January 8, 2018). "iPhones and Children Are a Toxic Pair, Say Two Big Apple Investors". The Wall Street Journal. ISSN 0099-9660. Archived from the original on January 8, 2019. Retrieved May 22, 2018.
  15. ^ Moyer, Liz (November 14, 2018). "Funds managing $4.8 trillion press the firearm industry to accept new principles on gun safety". CNBC. Archived from the original on April 2, 2019. Retrieved April 2, 2019.
  16. ^ McElhaney, Alicia (November 14, 2018). "$5 Trillion Investor Coalition to Pressure Gun Companies on Safety Measures". Institutional Investor. Archived from the original on April 2, 2019. Retrieved April 2, 2019.
  17. ^ Wood, Christianna; Ailman, Christopher; O’Hara, John; McCauley, Michael; Reali, Peter; Kumar, Rakhi (December 6, 2018). "Principles for a Responsible Civilian Firearms Industry". Harvard Law School. Archived from the original on October 27, 2020. Retrieved April 2, 2019.
  18. ^ a b "Young Oakland climate activists want fossil fuels out of the teachers' pension fund". The Oaklandside. March 21, 2022. Archived from the original on May 22, 2022. Retrieved May 27, 2022.
  19. ^ Reinders, Sienna, Students protest CalSTRS' investment in fossil fuels, archived from the original on August 11, 2022, retrieved May 27, 2022
  20. ^ "Youth Activists Call on California State Teachers Retirement System to End 'Toxic Relationship' With Fossil Fuel Companies". EcoWatch. February 2, 2020. Archived from the original on June 30, 2022. Retrieved May 27, 2022.
  21. ^ Venteicher, Wes (February 20, 2022). "State Senate proposal would force CalPERS, CalSTRS to sell oil and gas holdings". The Sacramento Bee. Archived from the original on February 19, 2022. Retrieved May 27, 2022.
  22. ^ Sheeler, Andrew (January 30, 2020). "Teens drench themselves in fake oil in climate change protest at California pension fund". The Sacramento Bee. Archived from the original on January 20, 2023. Retrieved May 27, 2022.
  23. ^ "California calls on pension funds to divest from coal in climate change push". The Guardian. February 11, 2015. Retrieved May 27, 2022.
  24. ^ Hirji, Zahra (May 22, 2015). "California Democrats Approve Sweeping Fossil Fuel Divestment Resolution". Inside Climate News. Archived from the original on June 30, 2022. Retrieved May 27, 2022.
  25. ^ Starkman, Dean (October 19, 2015). "CalPERS set to divest from thermal-coal companies". Los Angeles Times. Retrieved May 31, 2022.
  26. ^ "State Senator Lena Gonzalez Introduces Fossil Fuel Divestment Bill in CA Legislature". Daily Kos. Archived from the original on July 22, 2025. Retrieved May 27, 2022.
  27. ^ "Senator Lena Gonzalez Announces Fossil Fuel Divestment Bill to Advance California Climate Goals". Senator Lena A. Gonzalez. February 23, 2022. Archived from the original on April 2, 2022. Retrieved May 27, 2022.
  28. ^ "Proposed Bill Would Require CalPERS, CalSTRS to Divest Fossil Fuels". Chief Investment Officer. Archived from the original on May 27, 2022. Retrieved May 27, 2022.
  29. ^ "CalSTRS' board opposes state bill to divest from fossil fuels". Pensions & Investments. March 4, 2022. Archived from the original on May 27, 2022. Retrieved May 27, 2022.
  30. ^ "Fossil fuel divestment bill passes California Senate". Financial Standard. May 27, 2022. Archived from the original on May 27, 2022. Retrieved May 27, 2022.
  31. ^ "California bill requiring CalPERS, CalSTRS to divest halted by committee chair". Pensions & Investments. June 21, 2022. Archived from the original on July 7, 2022. Retrieved July 3, 2022.
  32. ^ "'Moral Failure': California Dem Pulls Plug on Fossil Fuel Divestment Legislation". Common Dreams. Archived from the original on July 1, 2022. Retrieved July 3, 2022.
  33. ^ "CalSTRS Headquarters Facts" (PDF). CalSTRS. Archived from the original (PDF) on August 21, 2012. Retrieved September 13, 2013.
  34. ^ "Schetter Electric, Inc CalSTRS Headquarters" (PDF). Schetter Electric. Archived (PDF) from the original on November 18, 2025. Retrieved March 5, 2026.
  35. ^ "CalSTRS Headquarters Achieves Platinum Certification for Leadership in Energy and Environmental Design" (Press release). CalSTRS. Archived from the original on September 16, 2013. Retrieved September 13, 2013.
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