California's teacher pension system says it earned a 13.4 percent return on its investments in the last fiscal year.
The earnings reported Thursday surpass the 7 percent target for the first time in three years.
The returns were driven by strong performance in public and private equity, which together comprise nearly two-thirds of the $209 billion portfolio.
The California State Teachers' Retirement System covers more than 900,000 current and former public-school teachers and administrators, including community college educators.
It's the second largest public pension system in the nation after the California Public Employees Retirement System, which reported earning 11.2 percent on its investments last year.