CalSTRS board reviews working draft of 2025–28 strategic plan and schedules cost review for March

The California State Teachers' Retirement System board held a first reading on Jan. 9 of a working draft of CalSTRS’ strategic plan for fiscal years 2025–28, and board and staff outlined a schedule to refine objectives and present estimated costs to the board in March.

Chief Executive Officer Cassandra Bradford and consultant Amy McAfee presented the draft, which staff described as the result of an 18‑month planning process and many stakeholder engagements. “This is a working draft of the strategic plan for the 25 through 28 period,” McAfee said, noting placeholders remain (for example, the CEO’s letter) and that the plan will be refined before a potential March vote.

Staff told the board the plan builds on the organization’s existing 2022–25 strategy and emphasizes two themes, “engage” and “act,” while adding objectives related to diversity, equity and inclusion, innovation, change management and risk. The draft explicitly calls out emerging technology, including artificial intelligence, and strengthens cybersecurity objectives under workforce and operational goals.

Board members asked for clarity on several items. Board member Karen asked whether “partner organizations” and “stakeholders” in the document include the full range of groups the agency interacts with; staff said the language is meant to be inclusive. Karen also asked whether the plan’s operational‑efficiency objective that mentioned the defined contribution (DC) program would also reflect the defined benefit (DB) program; staff said the DB remains the mandatory core and the DC program is voluntary and growing, and the plan calls for resourcing to support its expansion.

Board member Mario Ruffino asked how success will be measured mid‑cycle and how the agency will make course corrections. Staff explained the strategic performance management framework includes three layers: the long‑term strategic plan with three‑year progress indicators; an annual business plan with metrics, targets and resource allocations; and an annual accomplishments report tied to the CEO evaluation. Staff said the March meeting will present a three‑year business plan roadmap with cost estimates, and the July meeting will include the full annual business plan and performance discussions.

Staff also summarized how July off‑site feedback shaped the current draft, including language changes in the customer‑service section to emphasize financial education that helps educators appreciate CalSTRS benefits over their careers. The board received public comment on the item, including one speaker who raised concerns about accountability and internal audit processes.

Next steps identified by staff included incorporating board feedback into the written draft, adding the CEO letter, and working with administrative teams to produce a cost estimate to present in March. If the board is comfortable with the costed plan in March, staff said the board could consider approving the plan then; otherwise the matter could return for a third reading in May.