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California Defined Benefit Supplement Program

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California Defined Benefit Supplement Program
Basic facts
Location:Sacramento, California
Top official:Harry Keiley, chair
Active members:449,418
Website:Official website
Total assets under management
2022:$17,171,981,000
See also: Public pensions in California

The California Defined Benefit Supplement Program is a California state pension fund that provides retirement, disability, and survivor benefits to the state's public teachers and their families. Membership 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.” The California Defined Benefit Supplement Program had $17,171,981,000 ($17.1 billion) in total assets under management as of June 30, 2022.[1]

The management of public pension funds can indicate support or opposition to environmental, social, and corporate governance (ESG) investment practices. ESG investing considers the extent to which corporations align with and promote certain non-financial standards, such as net carbon emission or corporate board diversity goals. States typically hire asset management companies (AMCs) to direct pension plan investments, some of which have ESG commitments that guide their strategies.

This article features the following sections:

Background

See also: Public pensions

The California State Teachers Retirement System, founded in 1913, invests the assets of and provides funding for the California State Teachers Retirement System pension plan, the California Defined Benefit Program pension plan, the California Defined Benefit Supplement Program pension plan, and the California Cash Balance Benefit Program. CALSTRS operates as a defined benefit plan based on a formula established by California state law. These plans—based on the employee's length of service and salary— provide retirement, disability, and survivor benefits to the state's public school teachers, school employees, and their families.[2]

The California Defined Benefit Supplement Program served 449,418 active members as of June 2023.[2]

Pension performance overview

The following table features information about the funding level and assets managed by the California Defined Benefit Supplement Program as of June 30, 2023:[1]

California Defined Benefit Supplement Program pension performance (June 30, 2023)
Fiscal year Percent funded Unfunded liabilities Total assets[3]
2022 124.1% ($3,339,000,000) $17,171,981,000

Assets and asset management

Environmental, social, and corporate governance
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Asset management companies (AMCs) are hired to manage asset investment for state pension funds across all 50 states.

As of October 2024, 330 AMCs were members of the Net Zero Asset Managers Initiative (NZAM), and 391 AMCs were investor participants in the Climate Action 100+ initiative. Both international asset manager initiatives aimed to align the investment decisions of signatories with the goal of achieving net zero greenhouse gas emissions by 2050.[4][5]

NZAM announced on January 13, 2025, that it was suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it would reevaluate its plans and operations in light of “[r]ecent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions.”[6]

List of AMCs contracting with the California State Teachers' Retirement System

The California Defined Benefit Supplement Program, as of a subfund of the California State Teachers Retirement System, contracted with 208 asset management companies (AMCs) as of June 30, 2022. Of those companies or funds, 21 were investor participants in Climate Action 100+, and 27 were members of NZAM. The following list identifies the AMCs (and in some cases, the specific funds) contracting with the California State Teachers' Retirement System as of 2024:[7]

  • AB CAS
  • Aberdeen Standard Investments
  • Acadian Asset Management (NZAM, Climate Action 100+)
  • Ag. Funds
  • AGF Investments America Inc (Climate Action 100+)
  • Alphadyne
  • AlphaSimplex
  • AQR Defensive
  • AQR EAFE Equity
  • AQR EM Small Cap
  • AQR Emerging Equity
  • Arclight Co-Invest
  • Arcmont CS
  • Arcmont European DL Fund
  • Ardian CO-Invest
  • ARES Bank Loan
  • Ares European DL Fund
  • ARES SME FUND
  • Ares SSG SLO II
  • ARES SSG SLO III
  • Arevon
  • Argo
  • Arrowstreet Capital
  • Baillie Gifford Overseas Ltd (NZAM, Climate Action 100+)
  • Basalt CO-Invest
  • BCOM SWAP
  • Bivium Capital Partners LLC
  • BlackRock -- Enhanced (NZAM, Climate Action 100+)
  • BlackRock EAFE + CA IMI (NZAM, Climate Action 100+)
  • BlackRock High Yield (NZAM, Climate Action 100+)
  • BlackRock LTPC (NZAM, Climate Action 100+)
  • BlackRock Non-US EQ Transition 2 (NZAM, Climate Action 100+)
  • BlackRock Realty (NZAM, Climate Action 100+)
  • Blackrock Transition Mgmt (NZAM, Climate Action 100+)
  • BR STYLE
  • Bridgewater
  • CalSTRS - CMBS
  • CalSTRS -- Enhanced HLP
  • CalSTRS -- Leverage Real Estate
  • CalSTRS Buyout
  • CalSTRS Core PE
  • CalSTRS Core Plus
  • CalSTRS Currency-Non-US Equity
  • CalSTRS Debt Related
  • CalSTRS Distribution-PE
  • CalSTRS EAFE Canada
  • CalSTRS Emerging Markets
  • CalSTRS Equities
  • CalSTRS Gender Diversity
  • CalSTRS HY
  • CalSTRS Infrastructure Private
  • CalSTRS Low Carbon EM Index
  • CalSTRS Low Carbon EX-US Index
  • CalSTRS Low Carbon Index
  • CalSTRS Low Carbon US Index
  • CalSTRS MSCI Canada
  • CalSTRS MSCI EAFE + Canada SC
  • CALSTRS MSCI USA
  • CalSTRS MSCI USA Custom DMF
  • CALSTRS MSCI USA IMI
  • CalSTRS MSCI World EX USA DMF
  • CalSTRS Non-US EQ Transition Three
  • CalSTRS Pac Basin
  • CalSTRS RE Loans Receivable
  • CalSTRS RE Public Investments
  • CalSTRS Real Estate-Fixed Inc
  • CalSTRS Russell 1000
  • CalSTRS Russell 3000
  • CalSTRS Russell RAFI Large Cap
  • CalSTRS Russell TOP 50
  • CalSTRS Special Mandate Buyout
  • CalSTRS Special Mandate VC
  • CalSTRS US Large Growth Beta
  • CalSTRS USEQ Allocation
  • CalSTRS USEQ Transition
  • CalSTRS USEQ Transition 3
  • CalSTRS Venture Capital
  • Capital Dynamics CO-Invest
  • Cartica Capital
  • Castlelake Stable Yield
  • CB Richard Ellis
  • Centersquare REIT (Climate Action 100+)
  • CIBC
  • Clarion Partners LLC
  • CMAP TT Fund Limited
  • Corporate
  • Credit Suisse BL (NZAM, Climate Action 100+)
  • Debt Re Funds
  • Debt Transition 1
  • Debt Transition 2
  • Debt Transition 3
  • EAFE + Canada Small Cap
  • EM Cash Equitization
  • Emso
  • EX-US LC Transition Readiness
  • Fidelity (Climate Action 100+)
  • FORT
  • Fortress -- Public Equity
  • GE Allocation
  • GE Hybrid Transition
  • Generation Inv Mgmt (NZAM, Climate Action 100+)
  • Gepif CO-Invest
  • Global Equity
  • Golden Bridge
  • Graham Capital
  • Graticule
  • H&W Large Cap Value
  • Harbert
  • Heitman Capital Management
  • Hermes Global EM
  • HPS Global Direct Fund
  • HPS SSOF
  • Impactive Sierra Fund LP
  • IMPAX Leaders CalSTRS (NZAM, Climate Action 100+)
  • Inflation Sensitive
  • Inflation Sensitive Transition
  • Infrastructure Overlay
  • Innovative Strategies Transition
  • International Transition
  • Invesco Advisors (NZAM)
  • Invesco Advisors (NZAM)
  • INVESTCO Commodities
  • IS Special Situations
  • ISAM
  • ISQ CO-INVEST
  • J.P. Morgan EM Small Cap (NZAM)
  • J.P. Morgan GEM Opportunities (NZAM)
  • Jacobs Levy
  • JP Morgan EAFE (NZAM)
  • LaSalle (NZAM)
  • Lazard Asset Mgmt -- EM (NZAM, Climate Action 100+)
  • Lazard Asset Mgmt EAFE (NZAM, Climate Action 100+)
  • Lee Overlay Partners Limited
  • Legion Partners
  • Legion Partners Co-Inv
  • LEIA EAFE
  • Lionstone
  • LM Capital Group
  • Long-Duration US Treasuries
  • LYNX
  • Macroa
  • Millennium Global Investments
  • Mondrian EAFE
  • Mondrian EAFE Small
  • Mondrian Investment Partners -- EM
  • Non-US Special Situation -- P
  • ORCC III
  • ORO I
  • Panagora Small Cap
  • PIMCO Commodities
  • Principal Capital Investors LL
  • Principal EAFE Small
  • Principal REIT
  • Private Equity Opportunistic
  • PRO EAFE
  • Pyrford EAFE (NZAM, Climate Action 100+)
  • Pzena Investment Management (NZAM)
  • QMS
  • RBC Global Focus Equity (Climate Action 100+)
  • Red Mtn Capital Partners LP
  • RMS
  • RMS Transition
  • Robeco (NZAM, Climate Action 100+)
  • Schroder GEM Core Equity
  • Schroder INTL Equity
  • SER CAPITAL PARTNERS FUND I
  • Silvercrest SMIDV
  • SISS Transition Developed
  • SISS Transition Global
  • Special Situations A-One
  • Sprott Private Lending Fund II
  • Sprott Streaming and Royalties
  • SSGA -- EM
  • SSGA AQE EAFE Small
  • SSGA EAFE + CA IMI
  • SSGA EAFE Small Beta
  • SSGA EM SMALL CAP
  • SSGM EAFE Beta
  • SSGM EM ESG Index
  • Starboard Value
  • Stepstone
  • Sterling Capital Mgmt
  • Stone Point Capital
  • Stonepeak Co-Invest (NZAM)
  • STRS - Futures Equitization-US
  • STRS -- MBS Index Portfolio
  • STRS -- Special Situations-R/E
  • STRS Core Overlay
  • STRS Credit
  • STRS Interest Rate Products
  • STRS Opportunistic Overlay
  • STRS TAP
  • STRS TOP 200
  • STRS US MID Core
  • STRS US Special Situation-A
  • STRS US Special Situation-A2
  • STRS--Futures Equitization Non-US
  • T. Rowe Price International Inc (NZAM)
  • Templeton-Fiduciary EAFE
  • Timberland Accounts
  • Trian Partners
  • Trian Partners Co-Inv
  • U.S. TIPS
  • UBS (NZAM, Climate Action 100+)
  • US LC Transition Readiness
  • VISTA CO INV (NZAM)
  • WAMCO
  • Xponance

Governance and accountability

This section features information about the 12-member board of trustees that oversees the California Defined Benefit Supplement Program. The board is specific to oversight of the California Defined Benefit Supplement Program and does not exercise oversight duties for other state funds.[8]

Board selection method

The board of trustees that oversees the California Defined Benefit Supplement Program is made up of 12 members. The board is selected accordingly: Three member-elected positions representing current educators. A retired CalSTRS member appointed by the Governor and confirmed by the Senate. Three public representatives appointed by the Governor and confirmed by the Senate. A 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.[8]

Board of trustees membership

A 12-member board of trustees oversees the operation and administration of California Defined Benefit Supplement Program. The following individuals served on the board as of June 2023:[8]

  • Harry Keiley, chair
  • Denise Bradford, vice chair
  • Malia Cohen
  • Michael Gunning
  • Sharon Hendricks
  • Fiona Ma
  • William Prezant
  • Joe Stephenshaw
  • Ken Tang
  • Tony Thurmond
  • Karen Yamamoto

See also

External links

Footnotes

  1. ↑ 1.0 1.1 CALSTRS, "Annual comprehensive financial report for the fiscal year ended June 30, 2023", accessed March 11, 2024
  2. ↑ 2.0 2.1 CALSTRS, "About CalSTRS,” accessed March 11, 2024
  3. ↑ Note: By default, this refers to the actuarial valuation of total assets. In some cases, the total market value of assets is shown instead. See the cited source for details.
  4. ↑ The Net Zero Asset Managers Initiative, "The Net Zero Asset Managers Initiative," accessed January 26, 2023
  5. ↑ Climate Action 100+, "The Three Goals," accessed June 20, 2023
  6. ↑ Pensions and Investments, "Net Zero Asset Managers initiative to suspend activities in wake of BlackRock departure," accessed January 15, 2024
  7. ↑ Ballotpedia, "Ballotpedia: Asset management data for state-administered pension funds across the 50 states," March 2023
  8. ↑ 8.0 8.1 8.2 CALSTRS, "Board members," accessed March 11, 2024]
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