Second-Biggest US Pension Fund Returns 8.5%, Driven by Stocks

The California State Teachers’ Retirement System, the second-largest US public pension fund, returned 8.5% for its latest fiscal year, exceeding its target but lagging behind the country’s largest pension for the second year in a row.

Calstrs, which manages about $368 billion, has a 7% annual average return target and is ahead of schedule to reach full funding by 2046, according to a preliminary returns statement Wednesday. The pension could cover 76.7% of its future obligations as of June 30, 2024.