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HomeMy WebLinkAboutCalifornia State Teachers' Retirement System - Public Financial ReportFINANCIAL REPORT CALIFORNIA STATE TEACHERS’ RETIREMENT SYSTEM A COMPONENT UNIT OF THE STATE OF CALIFORNIA FOR THE FISCAL YEAR ENDED JUNE 30, 2021 POPULAR ANNUAL TABLE OF CONTENTS AWARD: GFOA CERTIFICATE 2 CalSTRS Popular Annual Financial Report 2021 Advancing sustainability forward 3 State Teachers’ Retirement Plan financial summary 4 Pension2 financial statements 7 Funded ratio and net pension liability 8 Members 9 Investments 11 CalSTRS’ impact on California’s economy 13 Teachers’ Retirement Board 14 Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to the California State Teachers Retirement System For its Annual Financial Report for the Fiscal Year Ended 2020 Executive Director/CEO CalSTRS Popular Annual Financial Report 2021 3 CalSTRS was established in 1913 as the pension plan for California’s public school educators. We began by serving 120 retired members and 15,000 active members. Today, we are the largest educator-only pension fund in the world and the second largest pension fund in the U.S., serving more than 980,000 members and their beneficiaries. With $308.6 billion in portfolio assets as of June 30, 2021, we model best practices in sustainable investment practices and customer service to our members. Our commitment to stewardship ensures we are here for our members long after they dedicate their careers to education as we continue to deliver on our mission: Securing the financial future and sustaining the trust of California’s educators. Since March 2020, most of our staff have been working remotely. Despite the challenges presented by the COVID-19 global pandemic, we maintained and exceeded our own high standards of customer service, and we earned a historic 27.19% net rate of return on investments. This Popular Annual Financial Report summarizes our system’s performance for the 2020–21 fiscal year. Complete financial information and a statistical overview can be found in our 2021 Annual Comprehensive Financial Report. Highlights of some of our current initiatives are discussed below. Net Zero Action Plan Recognizing that investment risks associated with climate change materially impact the value of CalSTRS’ Investment Portfolio, the Teachers’ Retirement Board has committed to achieving net zero greenhouse gas emissions across our portfolio by 2050, aligning with the science-based targets of the Paris Agreement. Since 2004, we have invested in climate-oriented solutions and integrated climate risk considerations into our investment and stewardship activities. The CalSTRS Collaborative Model The CalSTRS Collaborative Model is an investment strategy to manage more assets internally—to reduce costs, control risks and increase expected returns—and leverage our external partnerships to achieve similar benefits. These efforts are projected to support a strong investment portfolio—all for the benefit of California educators and their beneficiaries. Pension Solution project We are replacing our legacy pension administration system with modern functionality. Through this multiyear project, we seek to increase our ability to respond to customer and business needs; enhance services to members and their beneficiaries, staff and employers; gain long-term operational efficiencies; and improve internal controls. Sustainable investment and stewardship We regularly engage with portfolio companies based on our stewardship priorities. In 2020–21, our focus was on corporate and market accountability, board effectiveness, the transition to a low-carbon economy and a responsible firearms industry. We continue to expand our engagement efforts to drive positive change within our portfolio. Enterprise risk management We regularly review enterprise-level risks related to the accomplishment of our strategic goals and objectives, while considering internal and external factors that could be catalysts for emerging risks. The COVID-19 pandemic illustrated how our strong risk management program allowed us to effectively execute our existing emergency business continuity plans to ensure core business functions—paying benefits, collecting contributions and managing investments—were maintained while shifting most staff to working remotely. Funding The CalSTRS Funding Plan, set in motion via Chapter 47, Statutes of 2014 (California Assembly Bill 1469–Bonta), established a schedule of contribution rate increases shared between members, employers and the state to bring CalSTRS toward full funding by 2046. The funding plan is a model of shared responsibility and works with investment portfolio performance to advance us along the path of long-term sustainability. As a result of the funding plan, today we are better positioned than 10 years ago to react to a potential recession and remain on track to achieve full funding. Helping members build their futures Our members have unique financial education and awareness needs. We provide retirement tools, such as member service centers, workshops and webinars, websites and publications to support our members throughout their careers. We strive to be their trusted guide to retirement. Respectfully submitted, Cassandra Lichnock Chief Executive Officer CalSTRS Securing the financial future and sustaining the trust of California’s educators. ADVANCING SUSTAINABILITY FORWARD 4 CalSTRS Popular Annual Financial Report 2021 Assets and deferred outflows of resources 2021 2020 Percent change Investment assets1 $339,539,096 $274,030,480 23.9% Cash 130,768 151,903 (13.9%) Investment receivables 6,350,337 3,302,364 92.3% Member, employer, state and other receivables 4,790,924 3,589,214 33.5% Capital and other assets 474,571 385,685 23.0% Deferred outflows of resources 43,445 77,097 (43.6%) Total assets and deferred outflows of resources $351,329,141 $281,536,743 24.8% Liabilities and deferred inflows of resources Investment liabilities 266,489 235,813 13.0% Investments purchased payable 9,373,616 4,236,611 121.3% Loans and bonds payable 4,039,759 2,836,805 42.4% Benefits in process of payment 1,707,677 1,615,087 5.7% Net pension and OPEB liabilities 706,259 849,609 (16.9%) Securities lending obligation 23,782,637 24,057,981 (1.1%) Securities sold short 376,402 208,581 80.5% Other 486,176 395,718 22.9% Deferred inflows of resources 296,673 116,794 154.0% Total liabilities and deferred inflows of resources $41,035,688 $34,552,999 18.8% Net position restricted for pensions $310,293,453 $246,983,744 25.6% 1Includes securities lending collateral of $23.9 billion and $24.0 billion as of June 30, 2021, and June 30, 2020, respectively. Fiduciary net position (Dollars in thousands) STATE TEACHERS’ RETIREMENT PLAN FINANCIAL SUMMARY The following tables are for the State Teachers’ Retirement Plan (STRP), which consists of the Defined Benefit (DB) Program, Defined Benefit Supplement (DBS) Program, Cash Balance Benefit (CBB) Program and Replacement Benefits (RB) Program. Statement of fiduciary net position The statement of fiduciary net position presents information on assets and liabilities, with the difference between the two reported as net position. The tables that follow present comparative information and changes to the plan net position for the STRP for fiscal years 2020–21 and 2019–20. Your reward—a secure retirement. Our reward—getting you there. CalSTRS Popular Annual Financial Report 2021 5 STATE TEACHERS’ RETIREMENT PLAN FINANCIAL SUMMARY (CONTINUED) Statement of changes in fiduciary net position The statement of changes in fiduciary net position shows how the STRP’s net position changed during the fiscal year, reflecting contributions earned, net investment returns, benefit payments made and the costs of plan administration. Additions 2021 2020 Percent change Member contributions $3,742,508 $3,735,042 0.2% Employer contributions 5,758,216 6,080,060 (5.3%) State of California contributions 3,730,902 4,446,836 (16.1%) Net investment income 67,038,620 10,103,078 563.5% Other income 90,454 101,423 (10.8%) Total additions $80,360,700 $24,466,439 228.5% Deductions Benefit payments 16,606,579 15,921,966 4.3% Refunds of member contributions 101,549 102,711 (1.1%) Administrative expenses 251,556 218,868 14.9% Borrowing costs 89,604 94,689 (5.4%) Other expenses 1,703 6,349 (73.2%) Total deductions $17,050,991 $16,344,583 4.3% Increase in net position 63,309,709 8,121,856 679.5% Net position restricted for pensions Beginning of the year 246,983,744 238,861,888 3.4% End of the year $310,293,453 $246,983,744 25.6% Changes in fiduciary net position (Dollars in thousands) Total net position for the STRP increased by approximately $63.3 billion, or 25.6%, to $310.3 billion. Changes in net position are primarily caused by three factors—contributions, investment income and benefit payments. The most significant reason for the current change was positive net investment income in the STRP resulting from a time-weighted investment return of 27.19% (net of fees) for fiscal year 2020–21. Other funds and programs The above financials are for the STRP, which consists of the Defined Benefit Program, Defined Benefit Supplement Program, Cash Balance Benefit Program and Replacement Benefits Program. CalSTRS Pension2® Program is shown on page 7. For the Medicare Premium Payment Program and the Teachers’ Deferred Compensation Fund, please refer to the CalSTRS 2020–21 Annual Comprehensive Financial Report. Although this report is largely based on CalSTRS’ 2020‒21 Annual Comprehensive Financial Report, this report is not prepared in accordance with generally accepted accounting principles (GAAP). Only the financial data of certain plans (defined benefit and defined contribution plans) are included in this report. Additionally, information is presented in a summarized manner, and certain financial statements and note disclosures required by GAAP are omitted. A copy of this report as well as our 2020‒21 Annual Comprehensive Financial Report can be viewed online at CalSTRS.com/publications. 6 CalSTRS Popular Annual Financial Report 2021 How benefits are funded Over the last 30 years, approximately 64.2% of retirement benefits have been funded by investment returns with the remainder coming from a combination of member, employer and state contributions. The chart below compares STRP contributions to benefit payments for the last decade. As shown below, prior to the enactment of the CalSTRS Funding Plan in June 2014, there had been a growing gap between contributions and benefit payments. The gap decreased as contribution rates for members, employers and the state increased as per the funding plan. The gap was further reduced when the state made supplemental contribution payments of approximately $2.2 billion and $1.1 billion in fiscal years 2018–19 and 2019–20, respectively. The $1.1 billion was sent to CalSTRS to help reduce the state’s share of CalSTRS’ unfunded actuarial obligation, while the $2.2 billion was a payment made by the state, on behalf of employers, to provide short-term rate relief to employers. This rate relief was provided through temporary reductions to the employer supplemental contribution rate, which led to employer contributions in fiscal year 2020–21 being lower than expected. Note: Each data set shown by fiscal year in the chart above is presented in the order of state contributions on top, employer contributions in the middle, and member contributions on the bottom. Funding for benefit payments by source (last 30 years) 64.2% investment income 14.4% employer contributions 12.7% member contributions 8.7% statecontributions STATE TEACHERS’ RETIREMENT PLAN FINANCIAL SUMMARY (CONTINUED) 16 18 12 14 Do l l a r s i n b i l l i o n s Benefit payments State contributions Employer contributions Member contributions 2017–18 2018–19 2019–20 2020–212016–172015–162014–152013–142012–132011–120 2 4 6 8 10 STRP contributions and benefit payments CalSTRS Popular Annual Financial Report 2021 7 Assets 2021 2020 Percent change Investments $1,749,031 $1,291,689 35.4% Member, employer and other receivables 20,495 24,892 (17.7%) Total assets $1,769,526 $1,316,581 34.4% Liabilities Other $3,725 $2,694 38.3% Total liabilities $3,725 $2,694 38.3% Net position restricted for pensions $1,765,801 $1,313,887 34.4% Fiduciary net position (Dollars in thousands) Additions 2021 2020 Percent change Member contributions $234,508 $211,519 10.9% Employer contributions 1,283 716 79.2% Net investment income 309,510 37,246 731.0% Other income 408 317 28.7% Total additions $545,709 $249,798 118.5% Deductions Distributions and withdrawals $82,895 $66,352 24.9% Refunds of member contributions 6,613 6,122 8.0% Administrative expenses 4,287 3,331 28.7% Total deductions $93,795 $75,805 23.7% Increase in net position $451,914 $173,993 159.7% Beginning net position 1,313,887 1,139,894 15.3% Ending net position $1,765,801 $1,313,887 34.4% Changes in fiduciary net position (Dollars in thousands) Net position for Pension2 increased by $451.9 million, or 34.4%, as total additions of $545.7 million exceeded combined total deductions of $93.8 million. Investment assets increased 35.4%, or $457.3 million, primarily due to participant contributions made in fiscal year 2020–21 combined with net positive returns on investments held by plan participants. Additionally, net investment income increased 731.0%, or $272.3 million, due to positive return on investments held by plan participants in fiscal year 2020‒21 compared to lower returns in fiscal year 2019‒20. The Pension2 Program is CalSTRS’ voluntary defined contribution plan. Pension2 offers participants the opportunity to invest through tax-advantaged payroll deductions in low-cost, flexible 403(b), Roth 403(b), 457(b) and Roth 457(b) plans for additional retirement savings. The tables below present comparative information and changes to Pension2’s net position for fiscal years 2020–21 and 2019–20. PENSION2 FINANCIAL STATEMENTS 8 CalSTRS Popular Annual Financial Report 2021 FUNDED RATIO AND NET PENSION LIABILITY The June 30, 2020, actuarial valuation, which is the most recent valuation available, showed an increase of $172 million in the unfunded actuarial obligation of the DB Program to a total of $105.9 billion and an increase in the funded ratio from 66.0% to 67.1%. This increase is primarily attributable to increased contributions resulting from increased contribution rates per the CalSTRS Funding Plan. The funded ratio, which is the amount of assets on hand to pay for obligations, is projected to gradually increase under the funding plan as contributions increase, with steady progress toward full funding by 2046. Defined Benefit Program funded ratio Net pension liability The net pension liability (NPL) for the State Teachers’ Retirement Plan (DB, DBS, CBB and RB programs) represents the excess of the total pension liability over fiduciary net position. The NPL is a calculation based on Governmental Accounting Standards Board requirements and reflects total accrued benefits earned by plan members through the employment-exchange process less the value of plan assets available to fund the liability. State Teachers’ Retirement Plan Net pension liability of employers and nonemployer contributing entity The NPL decreased by 53.0% primarily due to an increase in the STRP’s fiduciary net position, which was primarily caused by positive investment returns earned in fiscal year 2020–21. 2019–20 2020–21 0 0 10 50,000 20 100,000 30 150,000 40 200,000 60 300,000 70 350,000 80 400,000 355,801 310,293 45,508 343,893 246,984 96,909 90 100% 50 250,000 2011 Total pension liability 2012 2013 2014 Plan fiduciary net position 2015 2016 2017 Net pension liability 2018 69%67%69% 64%63%64%67%69% 2019 2020 66%67% Fun d e d s tatus Do l l a r s i n m i l l i o n s CalSTRS Popular Annual Financial Report 2021 9 Members retiring in 2021 Fiscal year 2021 2020 Number retiring 12,785 11,706 Average age 63.2 63.3 Average years of service 24.7 24.3 Average annual final compensation $98,880 $95,376 Average annual Member-Only Benefit $57,756 $55,368 Average active member age and years of service Fiscal year 2021 2020 Average age 45.4 45.3 Average years of service 12.9 12.4 Average annual salary $83,289 $80,182 Years of service at retirement in 2021 Membership in the CalSTRS DB Program includes California public school employees (prekindergarten through community college) who are involved in activities that support public education, including teaching, mentoring, selecting and preparing instructional materials, providing vocational or guidance counseling, or supervising people engaged in those activities. Membership is in effect as long as contributions remain on deposit with CalSTRS. Members are employed by approximately 1,800 public school districts, community college districts, county offices of education, charter schools, state agencies and regional occupational programs. Pension2, the CalSTRS defined contribution plan, is open to all public school employees—certificated and classified. Membership in 20211 Fiscal year 2021 2020 Active members 429,681 448,419 Inactive members 230,770 213,056 Total active and inactive members 660,451 661,475 Service retirement benefits 281,302 276,070 Disability benefits 9,973 10,095 Survivor benefits 29,138 28,353 Total retirees and beneficiaries 320,413 314,518 Total members, retirees and beneficiaries 980,864 975,993 1 The figures presented in the table above differ from those presented in the Financial section of the Annual Comprehensive Financial Report, which are rounded for presentation purposes. MEMBERS Active members: 429,681 28.0%72.0% Total: 660,451 28.0%72.0% Inactive members: 230,770 30.0%70.0% Approximate number of employers as of June 30, 2021: 1,800 Defined Benefit Program 25–30 years 18.6% 10–15 years 7.5% 0–5 years 1.3%5–10 years 6.7% 15–20 years 12.8% 20–25 years 19.2% 40+ years 1.8% 30–35 years 22.3% 35–40 years 9.9% 10 CalSTRS Popular Annual Financial Report 2021 Number of Pension2 members Fiscal year 2021 2020 403(b) 457(b)403(b) 457(b) Contributing 13,378 1,179 11,643 872 Non-contributing 9,705 393 7,761 324 Total 23,083 1,572 19,404 1,196 Pension2 Program Over the last 10 years, the number of active members making contributions has increased 2%, from about 421,000 to 430,000, and the number of retirees and beneficiaries collecting benefits has increased 22%, from about 262,000 to 320,000. Change in number of active members versus retirees and beneficiaries Defined Benefit Program (continued) MEMBERS (CONTINUED) Active+2%Retirees and beneficiaries +22% Percent change in 10 years 0 100,000 200,000 300,000 400,000 500,000 2014 2015 2016 2017 2018 2019 2020 2021 Active Retirees and beneficiaries 2012 2013 Me m b e r c ou n t CalSTRS Popular Annual Financial Report 2021 11 CalSTRS’ primary goal is to maintain a financially sound retirement system. CalSTRS’ philosophy is “long-term patient capital”— investing for long-term net cash flows and capital gain potential at a reasonable price. The presentation of investment values and related returns in this section is based on investment industry practices and provides timely information that is easily compared to benchmarks and peer results. These values and returns may not match the Financial section of the Annual Comprehensive Financial Report, which presents this same information in accordance with GAAP. For more current investment information, as well as videos detailing key aspects of the investment portfolio, see CalSTRS.com. Investment allocation The Teachers’ Retirement Board adopts long-term strategic allocation targets to be implemented over several years. The following charts provide the distribution of the STRP investments based on portfolio allocation and market value of investments. Market value of investments Asset allocation Total investment portfolio of $308.6 billion as of June 30, 2021 (fiscal years ended June 30) 1Strategic Overlay consists of the Currency Management Program and Derivative Overlay. Dol l a r s i n m i l l i o n s 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $188,651 $208,700 $165,820 $189,080 $191,409 $150,611 $223,829 $236,938 $246,028 $308,560 Public Equity 49.7% Risk Mitigating Strategies 8.7% Innovative Strategies 0.5% Cash/Liquidity 2.6%Real Estate 12.3% Fixed Income 10.4% Private Equity 12.0% Strategic Overlay1 0.1% Inflation Sensitive 3.7% INVESTMENTS 12 CalSTRS Popular Annual Financial Report 2021 INVESTMENTS (CONTINUED) Investment performance The CalSTRS Investment Portfolio (Total Fund) posted a 27.19% one-year return calculated on a net of fees time-weighted return basis for fiscal year 2020–21. The following charts show CalSTRS’ returns versus custom benchmarks as of June 30, 2021. Benchmarks are goals and standards used to measure investment performance. $0-$100 million $100-$200 million $200-$300 million $300-$400 million $400-$500 million Over $500 million MEMBER SERVICE CENTER Benet payments by amount Yolo Alpine Yuba Mono SierraMendocino Shasta Nevada Modoc Trinity Glenn Humboldt Lassen Del Norte Lake Butte Colusa Plumas Siskiyou Calaveras Tehama Sutter El Dorado Marin Napa Merced Santa Cruz Sonoma San Francisco Monterey Placer Tulare Stanislaus Solano Fresno Contra Costa Alameda Santa Clara San Mateo San Luis Obispo San Bernardino Kern Los Angeles RiversideOrange San Diego Ventura Santa Barbara Kings Tuolumne Imperial Mariposa Madera InyoSan Benito San Joaquin AmadorSacra- mento Time-weighted returns as of June 30, 2021 Total Fund (net of fees)Custom benchmark (policy weighted blend of asset class benchmarks) 0 5 10 15 20 30 27.19 12.17 11.78 9.69 7.58 8.56 24.98 11.34 11.04 9.67 7.54 8.45 25 1 year 3 years 5 years 10 years 20 years 30 years Return p er cen t age One-year time-weighted returns by portfolio types as of June 30, 2021 CalSTRS return (net of fees)Custom benchmark 0 10 20 30 40 60 50 41.81 41.18 Public Equity 1.18 0.40 Fixed Income 7.43 1.47 Real Estate 51.93 47.82 Private Equity 6.29 5.78 Risk Mitigating Strategies 18.04 14.03 Inflation Sensitive 11.66 5.29 Innovative Strategies 0.25 0.09 Cash Return p er cen t age CalSTRS Popular Annual Financial Report 2021 13 CALSTRS’ IMPACT ON CALIFORNIA’S ECONOMY CalSTRS contributes to California’s economy through the benefits it pays to its members, who may then spend that money in the communities in which they live. CalSTRS paid an estimated $13.0 billion in benefits to 235,676 retirees living in California during fiscal year 2020–21. The following map and chart show the number of retired members living in each county and a range of the amount of benefits paid to those members, as well as the locations of the CalSTRS member service centers. Defined Benefit Program Retirees who live in California—characteristics by county $0-$100 million $100-$200 million $200-$300 million $300-$400 million $400-$500 million Over $500 million MEMBER SERVICE CENTER Benet payments by amount Yolo Alpine Yuba Mono SierraMendocino Shasta Nevada Modoc Trinity Glenn Humboldt Lassen Del Norte Lake Butte Colusa Plumas Siskiyou Calaveras Tehama Sutter El Dorado Marin Napa Merced Santa Cruz Sonoma San Francisco Monterey Placer Tulare Stanislaus Solano Fresno Contra Costa Alameda Santa Clara San Mateo San Luis Obispo San Bernardino Kern Los Angeles RiversideOrange San Diego Ventura Santa Barbara Kings Tuolumne Imperial Mariposa Madera InyoSan Benito San Joaquin AmadorSacra- mento STATISTICALC:24 M:68 Y:100 K:12R:176 G:97 B:39 HEX#B06127 County Number of retirees Estimated benefits paid in FY 2020–211 Alameda 7,769 $430,526,904 Alpine 14 520,632 Amador 435 20,076,120 Butte 2,236 107,247,504 Calaveras 600 28,202,400 Colusa 121 5,918,352 Contra Costa 7,708 403,282,560 Del Norte 264 12,047,904 El Dorado 2,364 122,124,240 Fresno 6,673 352,094,172 Glenn 136 6,591,648 Humboldt 1,427 59,386,032 Imperial 866 53,248,608 Inyo 165 7,076,520 Kern 4,496 250,876,800 Kings 616 33,101,376 Lake 505 22,652,280 Lassen 237 11,165,544 Los Angeles 44,301 2,563,964,676 Madera 1,429 72,038,748 Marin 2,381 117,173,772 Mariposa 263 11,522,556 Mendocino 1,139 50,872,296 Merced 1,609 90,245,592 Modoc 93 3,520,980 Mono 201 10,024,272 Monterey 3,246 173,492,208 Napa 1,429 73,204,812 Nevada 1,642 77,633,760 Orange 21,961 1,385,387,724 Placer 4,554 241,762,752 Plumas 316 13,715,664 Riverside 13,799 765,513,324 Sacramento 9,546 481,805,712 San Benito 322 18,265,128 San Bernardino 10,072 567,335,616 San Diego 22,030 1,209,182,640 San Francisco 2,939 152,005,080 San Joaquin 4,188 228,916,080 San Luis Obispo 4,528 227,504,832 San Mateo 3,786 222,207,912 Santa Barbara 3,082 158,661,360 Santa Clara 9,326 550,718,952 Santa Cruz 2,980 151,193,280 Shasta 1,681 78,388,392 Sierra 68 3,080,400 Siskiyou 640 27,002,880 Solano 3,181 161,734,764 Sonoma 4,613 230,889,876 Stanislaus 3,301 188,909,628 Sutter 780 42,831,360 Tehama 775 37,181,400 Trinity 132 5,513,904 Tulare 3,204 177,591,312 Tuolumne 709 34,950,864 Ventura 7,219 403,426,596 Yolo 1,228 58,811,376 Yuba 351 16,772,184 Total 235,676 13,011,094,260 ¹The annualized benefits based on the June 2021 monthly benefits, which also include purchasing power protection payments from the Supplemental Benefit Maintenance Account. JENNIFER URDAN Public Representative Term: August 12, 2020– December 31, 2023 FIONA MA State Treasurer Ex Officio Member TEACHERS’ RETIREMENT BOARD Note: Board members are listed as of the date this report is issued. The Teachers’ Retirement Board administers CalSTRS and sets policies and rules to ensure benefits are paid according to the law. The 12-member board is composed of: • Three active CalSTRS members elected by current educators. • One retired CalSTRS member appointed by the Governor and confirmed by the Senate. • Three public representatives appointed by the Governor and confirmed by the Senate. • One school board representative appointed by the Governor and confirmed by the Senate. • Four board members who serve in an ex officio capacity by virtue of their office: Director of Finance, State Controller, State Superintendent of Public Instruction and State Treasurer. The board appoints a chief executive officer to administer CalSTRS consistent with the board’s policies and rules and selects a chief investment officer to direct the CalSTRS Investment Portfolio in accordance with board policy. BETTY YEE State Controller Ex Officio Member WILLIAM PREZANT Public Representative Term: March 26, 2019– December 31, 2022 KEELY BOSLER Director of Finance Ex Officio Member KEN TANG School Board Representative Term: November 4, 2021– December 31, 2023 TONY THURMOND State Superintendent of Public Instruction Ex Officio Member DENISE BRADFORD K-12 Classroom Teacher Term: January 1, 2020– December 31, 2023 JOY HIGA Public Representative Term: January 19, 2018– December 31, 2021 HARRY M. KEILEY Board Chair K–12 Classroom Teacher Term: January 1, 2020– December 31, 2023 KAREN YAMAMOTO Retiree Representative Term: February 13, 2020– December 31, 2023 SHARON HENDRICKS Board Vice Chair Community College Instructor Term: January 1, 2020– December 31, 2023 WEB CalSTRS.com Click Contact Us to email myCalSTRS.com 403bCompare.com Pension2.com STAY CONNECTED CALL 800-228-5453 Calls within the U.S. 916-414-1099 Calls from outside the U.S. 888-394-2060 CalSTRS Pension2® Personal wealth plan 844-896-9120 (toll free) CalSTRS Compliance and Ethics Hotline CalSTRShotline.ethicspoint.com WRITE Postal mail CalSTRS P.O. Box 15275 Sacramento, CA 95851-0275 Overnight delivery to CalSTRS Headquarters 100 Waterfront PlaceWest Sacramento, CA 95605 VISIT Find your nearest CalSTRS office at CalSTRS.com/ localoffices. Call ahead to verify the hours and services of your local office. FAX 916-414-5040 CalSTRS resources 14 CalSTRS Popular Annual Financial Report 2021