SOURCE: BrightScope


July 14, 2010 09:00 ET

CalSTRS Selects the BrightScope On Target Indexes to Strengthen Its Target Date Funds

CalSTRS Will Use the Indexes to Benchmark Target Date Fund Performance and Risk

SAN DIEGO, CA--(Marketwire - July 14, 2010) -  BrightScope (, the leading independent provider of retirement plan ratings, today announced that the California State Teachers' Retirement System (CalSTRS) has chosen the BrightScope On Target Index to benchmark its target date portfolios, and analyze the CalSTRS Pension2® Easy Choice Portfolios.

Pension2 is an optional retirement savings plan offered by CalSTRS and provides both 403(b) and 457 products to California's educators.

Target Date Analytics (TDA) (, the leading independent provider of analysis, theory, and benchmarking of target date funds, together with BrightScope, created The BrightScope On Target Index -- designed to assist 401k plan sponsors, advisors and participants in measuring the performance and risk attributes of their target date funds.

The relationship is a two-pronged approach as TDA will work to supply CalSTRS with the quarterly allocation and performance data for the BrightScope On Target Indexes. This will enable CalSTRS to use the benchmarks internally to report to participants. In addition, TDA will prepare a detailed analysis to CalSTRS of the Pension 2 Easy Choice Portfolios.

"We're pleased that CalSTRS has selected the BrightScope On Target Index as it is the only target date indexes suitable for benchmarking the Easy Choice Portfolios," said Mike Alfred, CEO and co-founder of BrightScope. "Our California teachers deserve the best funds available and we are dedicated to helping CalSTRS maximize their optional retirement savings plan."

The BrightScope On Target Index will help CalSTRS measure the performance and risk attributes of their target date portfolios while giving participants the ability to see how accurately their target date portfolio lives up to its stated goals. By choosing the BrightScope On Target Index, CalSTRS will help improve participant outcomes and ensure retirement income security.

BrightScope has rated more than 50,000 401k plans, spanning more than 30 million workers and over $2 trillion in assets. Industry adoption on the BrightScope Rating will lead to more cost-effective plans, increased participation rates, higher employee satisfaction and better outcomes for the 60 million employees who depend on their 401k plan for retirement. 

About BrightScope
BrightScope is committed to helping America's workforce retire in dignity. BrightScope is an independent data analytics firm that quantitatively rates 401k plans and gives employers, employees, and advisors tools to enhance plan performance and maximize retirement outlook. The BrightScope Rating™ developed in partnership with leading independent 401k fiduciaries, reviews more than 200 unique data inputs per plan and calculates a single numerical score which defines 401k plan quality at the company level. BrightScope-published ratings, rating definitions, criteria and methodologies are available on the company's public site,

About Target Date Analytics, LLC
The leading independent source of in depth information about target date theory, design and analysis, Target Date Analytics LLC ("TDA"), (, specializes in target date indexes for reporting clarity and glidepath licensing. TDA created and maintains the BrightScope On Target Indexes, the OTI. TDA is the home of "Popping the Hood," a recurring and comprehensive analysis of target date fund families. TDA also consults plan sponsors, advisors and fund companies on glide path design and allocation, and assists with the creation of custom target date solutions.

Contact Information

  • Jen Harding
    Atomic PR for BrightScope
    Email Contact