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Spring Audio Town Hall Featured Benefit SecurityYour Questions Answered

More than 600 CalSTRS members called in when CalSTRS held its first audio town hall meeting earlier this year in April. The focus of the

presentation by CalSTRS CEO Jack Ehnes and Deputy Chief Executive Officer Peggy Plett was the challenging financial climate and the security of the Teachers’ Retirement Fund.

Here are questions and answers we were not able to get to before the hour ended. A recording of the entire town hall meeting is available at CalSTRS.com (select What’s New Archive) in two parts: the presentation and the question and answer period.

Q: What are SBMA supplemental payments?A: Quarterly supplemental payments, sometimes called SBMA payments, begin when the value of your monthly retirement benefit drops below 85 percent of its initial purchasing power due to inflation. The supplemental payment is intended to provide you with a consistent standard of living.

The purchasing power of your retirement benefit is determined each year by the change in the All Urban California Consumer Price Index.

Quarterly supplemental payments are paid with funds from the Supplemental Benefit Maintenance Account in the Teachers’ Retirement Fund, which is why they also may be known as SBMA payments. (See Ask CalSTRS, page 6.)

Q: What are the Government Pension Offset and the Windfall Elimination Provision?A: If you qualify for Social Security from other employment or your spouse’s employment, your monthly Social Security check may be

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CalSTRS: Still StrongSee 2008 Summary Report to Members enclosed.

i n s i D e2 Promises Made, Promises Kept

3 Proposed Legislation of Interest

4 CalSTRS Pension2®— Your Retirement Working For You

5 New Federal and State Withholding Changes

6 Ask CalSTRS: Protecting Retirement Benefits From Inflation, Recovering Overpayments

7 Annual Benefit Adjustment May Affect Social Security Benefit

8 Earnings Limit in Retirement Increases by $880

10 CalSTRS Workshop Helps You Manage Your Income in Retirement

Promises Made, Promises KeptBy Dana Dillon CalSTRS Board Chair

CalSTRS Mission: Securing the financial future and sustaining

the trust of California’s educators

Teachers’ Retirement Board

Dana Dillon, ChairJerilyn Harris, Vice-Chair

Kathy BruggerJohn Chiang

Michael GenestHarry Keiley

Roger KozbergBill Lockyer

Jack O’ConnellPeter ReinkeBeth Rogers

Carolyn Widener

Jack Ehnes Chief Executive Officer

Christopher J. Ailman Chief Investment Officer

Christiana Mullen Editor

Statements in this publication are general

and the Teachers’ Retirement Law is

complex and specific. If a conflict arises between information contained in this publication and the law, any decisions will be

based on the law.

CalSTRS Retired Educator is published twice a year for retired members and benefit recipients of the California State Teachers’

Retirement System. Send your comments or

suggestions to:

Editor, Communications P.O. Box 15275

MS 34 Sacramento, CA 95851

printed on recycled paper

These have been troubling economic times for everyone, including the

Teachers’ Retirement Fund. It’s no secret the fund’s value is down significantly from a high in 2008. We’re not alone, though. Pension funds and markets worldwide have experienced negative effects.

CalSTRS is built to last. Since 1913 there have been ups and downs in our fund, yet we have consistently kept our promise of providing a lifetime monthly retirement benefit to our members.

Good News from CalSTRSThe good news is your fund is secure. It’s secure for a number of solid reasons:

1. Your benefit is a contractual right guaranteed in the U.S. and California constitutions. As a public employee, you have a vested contractual right to your retirement benefit.

2. You cannot outlive your benefit. It’s a payment to you for life.

3. Your benefit is based on a formula, not on the amount in your account or investment returns.

4. We have plenty of assets to pay benefits. The majority of the benefits come from our normal cash management processes.

The Teachers’ Retirement Board has a fiduciary responsibility—our primary responsibility—to make certain the fund is secure.

History Reveals the Fund is FineThis is not the first time the economy has suffered, and this is not the first time the Teachers’ Retirement Fund’s value has declined. We know that the stock market and the economy will rebound.

Investors, like CalSTRS, can expect a negative market every 25 years, and a subsequent rebound. Between the Civil War and 2008, there have been more periods of market growth than market decline.

Metrics MatterCalSTRS investment professionals make decisions every day that strengthen the financial retirement security of more than 834,000 active and retired teachers:

• FromJuly2005toJune2008,thedecisions of these experienced fund managers added almost $3 billion to the Teachers’ Retirement Fund.

• Forthatexcellentservice,thoseprofes-sionals earned incentive pay last year totaling less than $3 million.

That’s a return on investment that cannot be beaten. Using CalSTRS employees to manage investments is about one-tenth the cost of using outside fund managers.

The most recent incentive payments, made last December, were paid for the three-year period that ran from July 2005 through June 2008, with an average annual return of 9.72 percent. The average return outperformed the policy benchmark by 1.9 percent for this period.

continued on page 9

CalSTRS2 • Retired Educator summer 2009

What’s New in Publications?Take advantage of CalSTRS publications for retired members. Two publications of interest are the new Survivor Benefits brochure and the 2009 Tax Considerations for Rollovers booklet.

Survivor Benefits: Remember Your Loved Ones—Explains your survivor benefits. Your spouse, children or other loved ones may be eligible for survivor benefits after your death. Keep the brochure with your important papers and share it with your beneficiaries.

2009 Tax Considerations for Rollovers—Summarizes the current federal tax rules that may apply if you or your survivors or beneficiaries plan to roll over all or part of a CalSTRS payment to a qualified plan.

For a complete list of publications, visit CalSTRS.com (select Forms and Publications).

The following is a summary of bills in the legislative process sponsored by the Teachers’ Retirement Board.

• Greentechnologypractices. Would allow members and beneficiaries to submit an electronic signature instead of an original signature when they want to make changes to their benefits. It also would eliminate mailed notices for electronic payments unless members request to continue receiving them or when there is a change in the payment amount. Currently, CalSTRS mails payment notices whenever electronic payments are made. Assembly Bill 232 (Hill) Sponsor

• Thewayinterestischargedanddefined. Would change the interest rate charged on installment payments of retirement incentives and service credit, redeposits and penalties to mirror the CalSTRS rate of return on investments. The bill also would set up a consistent way for CalSTRS to charge interest and penalties when employers are late making contributions or sending reports. Assembly Bill 654 (Mendoza) Sponsor

• Earningslimitsforretiredmembers.Would prohibit retired members who are under age 60 from returning to CalSTRS-covered employment for the first six calendar months after retirement. After that, they would be able to return to work under the existing earnings limitations. In addition, the bill would extend the sunset dates for postretirement earnings limit exemptions to June 30, 2012, and prohibit the emergency exemption for vacant administrative positions to be used by retirees who vacated those positions. Assembly Bill 506 (Furuntani) Sponsor

For more information on these key bills and others introduced during the current legislative session, visit CalSTRS.com/legislation.

Under the Dome Proposed Legislation of Interest

summer 2009

CalSTRS Retired Educator •3

You may be able to roll over, exchange or transfer your existing 403(b), 457 or Cash Balance accounts into CalSTRS Pension2®. The supplemental savings investments are selected by CalSTRS in cooperation with its financial planning consultant.

Easy Investment Options Pension2 offers 403(b), Roth 403(b), 457 and Roth IRA accounts.

Investment strategies are designed to match your goals:

• CalSTRSEasyChoicePortfolios.The15EasyChoicePortfolioscombine risk tolerance and retirement status.

• BuildYourOwnPortfolio.Choosefromavarietyofprofession-ally selected investments, including Vanguard, Dodge & Cox, TIAA-CREF and many others.

More Pension2 AdvantagesYou receive:

• Thesecurityofknowingyourinvestment options are with CalSTRS and its proven 96-year record.• Lowfeesandavarietyofinvestmentchoices.• Unbiasedadviceandplanningservicesat no additional cost.

TIAA-CREF, a national financial services organization and leading provider of retirement services in the academic field, provides record-keeping services for Pension2.

To be eligible for CalSTRS Pension2, your last employer currently must be offering Pension2. You can rollover any of your tax-sheltered annuity accounts into Pension2.

Call Today Call CalSTRS Pension2 toll free at 888-394-2060 or e-mail Pension2@CalSTRS.com to learn more.

CalSTRS Pension2—Your Retirement Working For You

who is managing your money?

Whether you are an investment do-it-yourselfer or hire professional financial help, know your financial professionals:

Financial planners—Financial planners are professionals who look at every aspect of your financial life—savings, investments, insurance, taxes, retirement and estate planning—and can help you create a financial plan to meet your financial goals. Certified Financial Planners have adopted ethical standards for CFP® professionals. Learn more at www.cfp.net.

Registered investment advisers—Most financial planners are also investment advisers. California investment advisers who offer or sell investments must register with the California Department of Corporations and may be required to register with the U.S. Securities and Exchange Commission. To learn more, visit www.corp.ca.gov and www.sec.gov/investor/brokers.htm.

Insurance agents or registered representatives—Insurance agents or registered representatives have a different focus and often receive a commission for their clients’ investments.

Before hiring a professional, ask about education, employment history, investment practices, fees and commissions, and disciplinary action. CalSTRS does not endorse any financial professionals.

CalSTRS4 • Retired Educator summer 2009

Your July 1 CalSTRS retirement benefit payment reflected the increased tax withholding that resulted from the .025 percent increase in California state income tax.

The increased income tax rate applies to all earnings in 2009 beginning January 1, so it is possible you may owe additional taxes at the end of the year.

The amount of tax withheld from your payment depends on your current tax withholding elections. If you elected a flat dollar amount deduction, the amount withheld for state taxes remains the same.

Use the tax withholding comparison calculator on myCalSTRS to estimate the effect on your net benefit. You can change your withholding preference by submitting a new Income Tax Withholding Preference Certificate, available at CalSTRS.com (select Forms and Publications) or on myCalSTRS.

Contact a qualified tax adviser if you have questions on how the state tax increase affects you.

New State Withholding On July 1 Benefit Checks

CalSTRS has adopted the IRS’s adjusted income tax withholding procedure for pension recipients, making federal tax withholding

for retirement benefits more accurate. Your October 1 benefit payment will reflect this change.

Your May PaymentFor many of you, the amount of your May 1 benefit payment was higher than your past payments because less federal income tax was withheld. This may result in under-withholding and additional tax owed at the end of the year.

The American Recovery and Reinvestment Act of 2009, part of the federal economic stimulus package, created new federal income tax withholding tables. Federal tax withholding for May 1 benefit payments followed the new tables. The tables were later adjusted for pension recipients to make withholding more accurate and reduce the possibility of a year-end tax liability.

What It Means For You NowYour October 1 benefit payment follows the adjusted tables—you do not need to take any action.

If you changed your federal tax withholding earlier this year to accommodate the initial change, you may wish to reevaluate your preferences. The tax withholding comparison calculator on myCalSTRS at CalSTRS.com will help you determine if you need to make another change to your withholding.

If you have a set dollar amount withheld each month from your benefit payment for federal taxes, the changes in the federal withholding tables do not apply to you.

Federal Tax Withholding Table Adjusted for Retirement Benefits

continued on page 7

New Federal and State Withholding Changes

CalSTRS Retired Educator •5summer 2009

Does my retirement benefit have any inflation protection?Yes. When the value of your monthly retirement benefit drops below 85 percent of its original purchasing power due to inflation, you will receive a quarterly supplemental payment. The supplemental payment is intended to provide you with a consistent standard of living when prices are rising.

The purchasing power of your retirement benefit is determined each year by the change in the All Urban California Consumer Price Index.

What happens if there is no or low inflation? When there is no or low inflation, your retirement benefit retains all or most of its economic value. Therefore, your quarterly supplemental payment may be the same or decrease—or you may no longer be eligible for a supplemental payment.

In years with no or low inflation, the annual automatic benefit adjustment to your monthly benefit may offset the effects of inflation. Annual benefit adjustments are calculated at 2 percent of your initial benefit and added to your monthly benefit each year in October.

What if I receive an overpayment?Overpayments occur from time to time. If you received an over-payment, you will receive a letter letting you know the amount of the overpayment and how CalSTRS will recover the money.

Early in retirement, the most common reasons for an overpayment are benefits that were based on estimated service credit or salary, or an incorrect last date of employment. Sometimes overpayments are discovered later. For example, if retired members who elected Option 4 or 5 do not inform us right away when their option beneficiary dies, the reduction to their benefit could be delayed, resulting in an overpayment.

We typically will deduct overpayments from your monthly benefit at a rate of 5 percent of your benefit until the entire amount is paid in full. If the overpayment is made because you provided inaccurate information or did not provide information affecting

Ask CalSTRSProtecting retirement benefits from inflation, recovering overpayments

have a new aDDress?

Keep Your Information Up to Date

Moved recently? Newly married, registered as a domestic partner or divorced? Make sure CalSTRS has your current legal name, mailing address and telephone number to avoid delays in benefits or communications.

In addition, be sure your beneficiary form is up to date. To make a change, submit a new One-Time Death Benefit Recipient form, available at CalSTRS.com (select Forms and Publications) or by contacting us.

Submit address changes on the Address Change Request form, available online or by contacting us. You can also make address changes using myCalSTRS at CalSTRS.com.

CalSTRS6 • Retired Educator summer 2009

your benefit status, we will deduct the overpayment at a rate of 15 percent of your benefit. If you return to CalSTRS-covered employment within 12 months of retiring and earn more than the postretirement earnings limit, we will deduct 100 percent of your monthly benefit until the overpayment is paid in full.

Report Beneficiary Deaths Promptly

Notify us as soon as possible if one of your beneficiaries dies, so that we can update your account. Additionally, be sure your survivors know that they must notify us in the event of your death. A reduction to your beneficiary’s benefit may need to be made. If we are not informed promptly, you or your benefi-ciary may receive an overpayment that will have to be repaid.

What we will need:

• Deceasedperson’snameandSocialSecurityor Client ID number.

• Dateofdeath.• Name,addressandtelephonenumberofacontactperson.• Acopyofthecertifieddeathcertificate.

If one of your option beneficiaries dies, you may be eligible to elect a new option beneficiary. Your benefit will be affected if you make a new election. Contact CalSTRS to learn more. (See also the new Survivor Benefits: Remember Your Loved Ones brochure, page 3.)

American Recovery and Reinvestment Act of 2009Provisions of the new federal law include:

• TheMakingWorkPaytaxcredit,arefundable tax credit of up to $400 for individuals and $800 for fami-lies for 2009 and 2010. This credit applies only to earned income—CalSTRS retirement benefits or annuity income is not counted toward the credit.

• TheEconomicRecoveryPayment,aone-time $250 payment for individ-uals receiving benefits from Social Security, the Railroad Retirement Board or the U.S. Department of Veterans Affairs. The one-time payment was issued in May 2009 and is a reduction to any Making Work Pay tax credit. It is not subject to the Government Pension Offset or the Windfall Elimination Provision.

• TheCreditforGovernmentRetirees,a refundable $250 tax credit for certain government retirees not eligible for Social Security. The one-time credit is provided in place of any Economic Recovery Payment and is a reduction to any Making Work Pay tax credit. This credit can be claimed when you file your 2009 tax return, due by April 15, 2010.

If you have questions about the new provisions, contact a qualified tax adviser or visit the IRS Web site at www.irs.gov.

feDeral withholDing continued from page 5

RECEIvING SOCIAL SECURITY AS A SPOUSE?

Annual CalSTRS Benefit Adjustment May Affect Your Social Security Benefit

Your monthly CalSTRS retirement benefit will soon increase if you retired before September 1, 2008.

If you are receiving Social Security as a spouse, be sure to inform the Social Security Administration when you receive your CalSTRS annual benefit adjustment. Your Social Security benefit may need to be adjusted to avoid receiving excess Social Security benefits you would have to repay.

Your CalSTRS service or disability retirement benefit will not be reduced because of Social Security rules.

Questions? Contact Social Security at 800-772-1213 or www.socialsecurity.gov.

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CalSTRS Retired Educator •7

Thinking about returning to work? You’re not alone, especially in today’s economic

climate. More than 27,000 CalSTRS retirees have returned to work part time in the California public school system.

The arrangement benefits everyone: You stay active and earn additional income, while schools and students benefit from

your knowledge and experience.

Additionally, you may continue to draw retirement benefits. Keep

in mind, however, that if you are working in a CalSTRS-

covered position, there’s a limit to the amount of money you can earn without affecting your benefits.

For fiscal year 2009-10, you can earn no more than

$30,580 a year. This limit applies only to CalSTRS-covered

employment, including substitute

teaching or working as a consultant in a public school performing CalSTRS-covered activities. If you have not worked in public education for at least 12 consecutive months after retire-ment, the earnings limit does not apply.

Keep Track of Your CalSTRS EarningsYou are responsible for keeping track of your gross earnings. We also track your earnings and will notify you by mail if you get close to the limit. However, it usually takes three to four months for us to receive, review and post your earnings to your account. By then, you may have exceeded the limit.

If you earn more than the limit, your monthly retirement benefits will be reduced by the excess amount, up to your total annual benefit amount. For example, if you earn $3,000 more than the limit in a fiscal year (July 1 to June 30), we will reduce your retirement payments until the $3,000 is repaid.

Jobs Exempt from the Postretirement Earnings Limitations July 1, 2009 to June 30, 2010*

Retirement date Exempt activity

On or before January 1, 2007

Providing direct remedial education in a classroom for grades two through 12

Providing direct instruction in a preK-12 classroom

Supporting or assessing new teachers in certain programs

Supporting individuals who are completing student-teaching assignments or pre-internship or paraprofessional programs

Providing direct instruction in Special Education or English Language Learner programs

Any date Working in any CalSTRS-covered employment, provided you start work more than 12 months after retirement

Working as a trustee or administrator for a financially insolvent employer or under the Immediate Intervention/Underperforming Schools Program or the High Priority Schools Grant Program

In certain emergency situations, working in an administrative position that requires highly specialized skills

Earnings in Retirement Limited by Law Limit Increased by $880

CalSTRS8 • Retired Educator summer 2009

*Pending legislation would extend this date to June 30, 2012.

The CalSTRS board is conducting its annual discus-sion of the incentive program, starting with a study of these programs. The study showed performance-based incentives are a standard tool used by other public pension systems in the U.S. Our goal is to balance responsible compensation with good stewardship. After researching a variety of options, we expect to reach a conclusion later this summer.

Modern Programs Provide SafeguardsDuring the market crash of 1929, there were none of the safeguards we have in place now. There was no FDIC insurance for banks and no unemployment insurance for workers. The Federal Reserve, the lender of last resort, allowed money supplies to fall by more than 30 percent. There was not the international coop-eration we have today. Our current fiscal policy makers are motivated, flexible and innovative.

Our Actions Secure Your FutureMoving forward, having observed 96 years in business, CalSTRS continues to take action for you in ways that are:

• Smart.Inearthquakecountry,buildingsbuilttoabsorb the impact of shaking sway a bit but will not crumble. That’s CalSTRS: a smart investor, prepared for the coming recovery.

• Patient.Wedonothopinandoutofinvestmentsknowing that a bedrock fund is built on patient and long-term investing.

• Adaptive.Wehavetemporarilyexpandedourassettarget ranges for better day-to-day management, which helps us take advantage of market volatility and avoid having to sell real estate and private equity during down markets.

• Selective.Weemployonlythebestmoneymanagers, applying rigorous due diligence.

The earnings limit is adjusted annually on July 1, based on teacher salary rates. The limit is roughly equal to 50 percent of the average full-time salary of CalSTRS Defined Benefit members.

Exempt Work A number of jobs in education are exempt from the earnings limit (see box, page 8). Except for the 12-month break exemption, your employer must submit documentation to CalSTRS to determine your eligibility for an exemption. Pending legislation would extend the exemptions through June 30, 2012 (see Under the Dome, page 3).

Additional Restrictions If you are receiving disability benefits, state law also limits the amount of money you can earn. In addition, if you took advantage of the CalSTRS two-year early retirement incentive, you will forfeit the full retirement incentive if you return to work for the same employer within five years of retirement. This includes working as a substitute teacher, trustee or administrator.

To learn more, visit CalSTRS.com (select FAQ under Resources), see the Member Handbook or call us at 800-228-5453.

promises kept continued from page 3

Medicare B Premiums to IncreaseIf you do not pay your Medicare Part B premiums from a Social Security check, your premiums are expected to increase.

The base Medicare Part B premium of $96.40 is expected to increase to $104.20 in 2010 and up to $120.20 in 2011.

The increase is more than would be expected because the approximately 75 percent of individuals whose Medicare Part B premiums are deducted from their Social Security benefit will not be paying the increase. The reason: For the first time, Social Security recipients will not be receiving a cost-of-living increase due to low inflation. A “hold harmless” provision prevents Social Security payments from decreasing from one year to the next as a result of Medicare Part B increases.

Questions? Contact Social Security at 800-772-1213 or visit www.socialsecurity.gov.

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CalSTRS Retired Educator •9

CalSTRS Workshop Helps You Manage Your Income in Retirement

Managing your income may be even more important now than it was before you retired.

You may have several sources of income besides your CalSTRS retirement benefit. How can you be sure you are making the most of all your financial resources?

At one of our free CalSTRS Retirement Income Management workshops, you will learn how to preserve, protect and manage your retirement income. You will also get help to create work-sheets and a plan for managing your income that you can take to a certified financial planner if you need professional assistance.

The workshop is strictly educational—no specific financial advice will be given and no financial products will be offered or sold.

Keep in mind that there is no one-size-fits-all solution for managingyourincome.Lookatyourentirefinancialpictureandbe aware of all your options, know the questions to ask and the decisions you may have to make.

Take a look at the four main risks you face as a retiree:

• Longevityrisk—Withanaveragelifespanof85years,educa-tors are the longest living retirees. While you cannot outlive your monthly CalSTRS benefit, you can outlive the assets you hold in your 403(b) or IRA accounts.

• Inflationrisk—Onafixedorguaranteedincome,itcanbehardto keep up with rising prices despite the inflation protection on your CalSTRS benefit (see Ask CalSTRS, page 6). Health care costs alone have increased more than the average rate of inflation—as much as 12 percent or even higher.

• Healthrisks—Evenyourbestintentionsforlivingahealthylifecannot prevent unexpected medical expenses from a sudden illness or health condition.

• Marketrisk—Personalinvestmentaccountsareaffectedbytheups and downs of the financial markets. Even the best laid plans can be weakened by market volatility.

To learn more, visit CalSTRS.com (select Counseling/Workshops, then CalSTRS Workshops).

Keep Connected Online With myCalSTRSUsing our secure Web tool for members, myCalSTRS at CalSTRS.com, you can get information on your CalSTRS accounts any time, any place.

With myCalSTRS, you can:• Ask questions about your accounts

and receive prompt, confidential answers.

• View and print your 1099-R forms and benefit payment stubs.

• See your beneficiary information.

• Change your e-mail address.

• Request to receive Retired Educator electronically. Go to Settings at the top, then select Preferences. Check the box across from Receive Semiannual Retired Educator/CalSTRS Connections Newsletter and then select Update.

If you haven’t already registered for myCalSTRS, sign up today at CalSTRS.com.

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CalSTRS10 • Retired Educator

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CalSTRS Retired Educator •11

reduced or eliminated by the federal Windfall Elimination Provision or the Government Pension Offset.

Your CalSTRS retirement benefit will not be reduced by these rules.

Government Pension OffsetIf you qualify for a Social Security benefit based on your spouse’s Social Security benefit, your benefit may be reduced or eliminated because of the Government Pension Offset, or GPO.

Two-thirds of your CalSTRS benefit is used to reduce your Social Security benefit. For example, if you receive $600 a month from CalSTRS and your Social Security spousal benefit is $500 a month, $400 would be deducted from your $500 Social Security benefit, leaving $100 for your Social Security benefit.

You are exempt if you:

• ReceivedorwereeligibletoreceiveaCalSTRS benefit before December 1982 and you meet all the requirements for Social Security spouse’s benefits in effect in January 1977 or

• Receivedorwereeligibletoreceiveagovernment pension before July 1, 1983, and you were receiving one-half support from your spouse.

Windfall Elimination ProvisionIf you qualify for Social Security based on your own employment, your Social Security benefit may be reduced because of the federal Windfall Elimination Provision, or WEP.

You are exempt if you:

• Reachedage62orbecamedisabled before January 1, 1986 or

• Earned30ormoreyearsofSocialSecurity credit and paid Social Security taxes on substantial earnings from other employment.

To learn more, read Social Security, CalSTRS and You, available at CalSTRS.com or by calling 800-228-5453, or visit www.socialsecurity.gov.

Q: What percentage of the CalSTRS portfolio is held in cash assets? A: CalSTRS maintains up to 1 percent of the portfolio in cash instruments as part of its cash management system. This system ensures the necessary liquidity each month to pay benefits. Go to CalSTRS.com and select Investments for information on portfolio holdings, current asset allocation, quarterly investment reports, corporate governance policies and more.

Q: Given the downturn in the stock market, did CalSTRS take on too much risk?A: The CalSTRS investment portfolio is built for the long haul, with assets diversified over a variety of vehicles—bonds, stocks, real estate and private equity. Market ups and downs smooth out over time. CalSTRS has a long-view strategy that anticipates market declines.

The CalSTRS board carefully reviews the asset mix about every three years and makes course corrections as necessary.

auDio town hall continued from page 1

Make better-informed decisions about your

investments

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WEB SITES www.CalsTrs.comClick Contact Us to e-mail

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CALL 800-228-5453 7 a.m. to 6 p.m.monday through Friday

866-384-4457 Home Loan Program

888-394-2060CalsTrs Pension2®Personal Wealth Plan

WRITE CalsTrsP .O. Box 15275sacramento, CA 95851-0275

VISIT member services100 Waterfront PlaceWest sacramento, CA 95605

FAX 916-414-5040 (new)

CalsTrs West sacramento Headquarters may experience closures through June 30, 2010, due to ordered employee furloughs.

Please call to confirm business hours.

CalSTRS Resources

The Best WayWhile CalSTRS headquarters has a new street address with its move to West Sacramento, our mailing address and telephone number did not change. The best way to reach us is still by telephone, e-mail or regular mail, using our P.O. box.

Write UsOur mailing address remains the same:CalSTRS P.O. Box 15275 Sacramento, CA 95851-0275

How to Reach Us

Call Us Call our Contact Center toll free at 800-228-5453 from 7 a.m. to 6 p.m. Monday through Friday. Due to ordered employee furloughs, CalSTRS headquarters may be closed the first, second and third Fridays of the month through June 2010.

E-Mail Us E-mail us from your myCalSTRS account or at CalSTRS.com/contactus.

Fax Us Our new fax number is 916-414-5040

Visit UsCalSTRS Member Services 100 Waterfront Place West Sacramento, CA 95605We also have benefits counseling offices located across the state. To find the office nearest you, visit CalSTRS.com/counseling.

summer 2009