CalSTRS' funded status fell to 62.6% on a smoothed actuarial basis as of June 30, 2017, down from 63.7% a year earlier, according to the $222.5 billion pension plan's actuarial valuation reported at Thursday's board meeting.
The report by the California State Teachers' Retirement System's actuarial consultant, Milliman, revealed that the pension plan's unfunded actuarial obligation is up to $107.3 billion as of June 30 from $96.7 billion at the June 30, 2016, valuation.
The increase was due to West Sacramento-based CalSTRS lowering the long-term investment return assumption to 7% from 7.25%, which increased the plan's unfunded actuarial obligation by $8.7 billion. Overall, the unfunded actuarial liability was up by $10.6 billion over the year.
