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CalSTRS reelects chair, adopts 2025–28 strategic plan and hears $34–36M cost estimate
Summary
The CalSTRS board reelected Denise Bradford as chair and Karen Yamamoto as vice chair, adopted a three‑year strategic plan for 2025–28 and heard staff estimates that implementing the plan could require $34–$36 million and about 65–70 positions, including $23 million and 39 permanent positions tied to Benefit Connect program operations.
The California State Teachers Retirement System board reelected Denise Bradford as chair and Karen Yamamoto as vice chair and voted to adopt its fiscal 2025–28 strategic plan at its May meeting.
Staff presented preliminary cost estimates for implementing the three‑year plan. Julie Underwood, CalSTRS chief financial officer, said the estimates are for planning purposes only and do not request new funding at this meeting. Art Martinez, director of financial planning, told the board the projected incremental operating cost "is between 34 and $36,000,000 with 65 to 70 positions," and the midpoint on internal materials was $35 million and about 68 positions.
Art Martinez said roughly $23 million (about 66% of the midpoint estimate) and 39 positions would support the transition of the pension solution from a project to an ongoing "program" to operate Benefit Connect after go‑live. He described $20 million of that amount as covering establishment of a new division and 39 permanently authorized positions plus about $3 million as temporary "bridge" funding to transition project‑funded staff back into the organization.
Board members from finance and the audit committee pressed staff for clarification about how many current project staff could be absorbed into permanent roles and how the temporary funding would be used. Julie Underwood said many current project roles are blanket positions funded by the project; when the project ends the funding ends, so the temporary funding is intended to bridge that timing and absorb staff through attrition or internal competition for openings.
Board members also noted the estimates exclude any resource requests from the investments branch and said the costing will be refined through the normal budget cycle; staff said the business plan initiatives will be incorporated in September and November budget presentations.
The board approved the strategic plan by voice vote. Staff said the costing discussion will be revisited when more detailed business plan proposals are presented to the board and budget office later this year.
