Your Retirement Guide 2024 For Defined Benefit Program members

This booklet contains information for a CalSTRS Defined Benefit Program service retirement. If you think you may be eligible for a disability benefit, see Your Disability Benefits Guide. If you’re applying for a disability benefit and wish to apply for a service retirement benefit while your application for disability benefits is being evaluated, complete the Disability Benefits Application. If you’re a Cash Balance Benefit Program participant, complete the appropriate Cash Balance Benefit application. You’ll find these publications and applications at CalSTRS.com/publications and CalSTRS.com/forms.

Benefits planning services

Explore your CalSTRS benefits and services with the help of a CalSTRS benefits specialist in these interactive group sessions with fellow educators.

My Retirement Decisions
	
In this webinar, you’ll learn:

• How we calculate your CalSTRS monthly retirement benefit.

• Your option choices if you want to provide a lifetime monthly benefit to your survivors—and how each option would affect your monthly benefit.
• Your choices for receiving the funds in your Defined Benefit Supplement account.
• Ways to submit your Service Retirement Application.

• What you need to know if you return to work in the California public school system in retirement.

Retire Now or Later
	
In this webinar, you’ll explore:

• The CalSTRS Retirement Benefits Calculator and how to generate retirement estimates.
• myCalSTRS and your personalized Retirement Progress Report.
• CalSTRS’ online resources.

• Decisions you’ll need to make to determine if you can retire now or later.

Online Service Retirement Application Demonstration
	
In this webinar, you’ll be able to:

• Fill out your Service Retirement Application electronically through your myCalSTRS account.*
• Receive step-by-step instructions from a CalSTRS benefits specialist.
• Learn how to update your one-time death benefit recipient online.

* If you prefer to complete a printed Service Retirement Application and submit it via mail or fax, sign up for our Paper Service Retirement Application Demonstration webinar. Be sure to download and print the handouts prior to the webinar.

Visit CalSTRS.com/webinars to learn more about these webinars, register for an event and find any handouts you may need.

The California Public Employees’ Pension Reform Act of 2013 made changes to the plan structure that primarily affect benefits for members first hired
to perform CalSTRS creditable service on or after January 1, 2013. These members are under the CalSTRS 2% at 62 benefit structure.

Members under the CalSTRS 2% at 60 benefit structure are those who:

• Were first hired to perform service that could be credited to the Defined Benefit Program on or before December 31, 2012.

• Were CalSTRS members before 2013, terminated their membership and then returned to active membership on or after January 1, 2013.

• Performed service that could be credited to the Defined Benefit Program and were subject to coverage under a different retirement system, including Social Security, on or before December 31, 2012.

• Were members of a concurrent retirement system on or before December 31, 2012, and who performed service under that system within six months of becoming a CalSTRS member.

Determine whether you’re a CalSTRS 2% at 60 member or a CalSTRS 2% at 62 member by viewing your Retirement Progress Report on myCalSTRS.com.

Other differences between the two benefit structures include final compensation, normal retirement age, creditable compensation cap and contribution rate.

In addition, CalSTRS 2% at 62 members are not eligible for benefit enhancements, the Reduced Benefit Election or the CalSTRS Replacement Benefits Program.

See the CalSTRS Member Handbook at CalSTRS.com/publications to learn more.

Contents

Your CalSTRS retirement timeline __________________________________________ 4

Your benefit of a lifetime _________________________________________________ 5

Your planning checklist ___________________________________________________ 6

Step 1: Research your retirement decisions ___________________________________ 7

CalSTRS Defined Benefit Program _______________________________________8

Your Defined Benefit Supplement Program decisions ________________________ 16

Your other considerations ______________________________________________ 19

Step 2: Complete and submit your forms ___________________________________ 27

Service retirement forms _______________________________________________28

Service Retirement Application checklist ___________________________________ 30

CalSTRS’ role in your retirement process _________________________________ 32

CalSTRS Pension2® ______________________________________________________33

Glossary ______________________________________________________________34

CalSTRS is governed by the Teachers’ Retirement Law, available at CalSTRS.com, and other governing laws. If there is a conflict between the law and this booklet, the law prevails. We make reasonable effort to provide accurate information in our publications, but such information is not meant to replace the law or provide legal or financial advice. To stay informed, consult a variety of sources, including CalSTRS.com, the California State Legislative Counsel at leginfo.legislature.ca.gov, your union and elected legislative representatives. We can provide you with information on your benefit choices, but we do not provide legal, financial, tax or other advice. For such advice, consider consulting a professional in the relevant field.

10–12 months before your retirement date

• Activate your myCalSTRS account, if you haven’t already done so. Start at myCalSTRS.com and select Register Now.
• Research your retirement decisions (see pages 7–24).

• Register for the My Retirement Decisions webinar at CalSTRS.com/webinars. • Schedule a benefits planning session by calling 800-228-5453.
• Check if pending or new legislation may affect your benefits or influence the timing of your retirement at CalSTRS.com/legislation.

Up to six months before your retirement date

• Complete and submit your Service Retirement Application (see pages 27‒31).

• Receive step-by-step guidance from a CalSTRS benefits specialist by attending one of our Service Retirement Application webinars. Register at CalSTRS.com/webinars or call 800-228-5453.
»	Online Service Retirement Application Demonstration: Assists you with submitting your application and forms online through your myCalSTRS account.
»	Paper Service Retirement Application Demonstration: Helps you submit a hard copy of your application and forms via mail or fax.

Your CalSTRS retirement timeline

This timeline of events from the year before your retirement will give you an idea of what to do and when. Although your specific timeline may differ, it’s better to prepare for retirement early to avoid delays that may occur during the peak months of April through July.

For a timeline of what happens after you submit your application, review CalSTRS’ role in your retirement process on page 32.

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Your benefit of a lifetime

You’re approaching one of life’s most important milestones—retirement from your working career. Your smooth transition to this new stage of your life requires thoughtful planning and CalSTRS is here to help you.

Your retirement plan

As a CalSTRS member, you participate in a hybrid retirement system that consists of traditional defined benefit (Defined Benefit Program), cash balance (Defined Benefit Supplement Program) and voluntary defined contribution (CalSTRS Pension2) plans.
Your CalSTRS retirement benefit, a defined benefit pension, is based on a formula that provides a fixed percentage of your final compensation based on your age when you retire and your years of service:

This booklet takes you through the service retirement application process. You’ll find tips and checklists to help you plan and prepare for your retirement.
	
service credit × age factor × final compensation = your retirement benefit

Learn more about the service retirement formula on page 9.

Your monthly retirement benefit is guaranteed for your life and, if you elect an option, the lives of your beneficiaries after your death.
You also have survivor and disability benefits.

You must submit your Service Retirement Application to CalSTRS before you’ll receive a CalSTRS retirement benefit. If you’re unable to submit your application before your retirement date, you can
backdate your retirement to any

In addition to this guide, you can turn to the Member Handbook, CalSTRS.com and your most recent Retirement Progress Report for information.

Your Retirement Progress Report, available on myCalSTRS.com,
		day following your last day of work, vacation or compensated approved leave for your CalSTRS-covered position, but no earlier than January 1, 2012. Service credit purchases must be paid in full before your retirement date.
		
is your annual statement of your CalSTRS accounts and includes retirement benefit estimates if you’re age 45 or older and if you have at least five years of service credit.

Your Retirement Guide 2024 5

Your planning checklist

Use this checklist while planning for your CalSTRS retirement.

Read this guide and the retirement planning sections of the Member Handbook.

Go online to myCalSTRS.com to activate your myCalSTRS account if you haven’t already.

Take advantage of benefits planning services. Learn more about webinars and
benefits planning sessions at CalSTRS.com/benefits-planning-services.

Check if pending or new legislation may affect your benefits or influence the timing of your retirement. Sources include your legislative representative, your union representative and CalSTRS.com/legislation.

Gather clear, unaltered photocopies of documents you’ll need.

If you’re electing an option beneficiary:

Estimate your monthly benefit using the online calculator at CalSTRS.com/calculators or the benefit estimate worksheets in
the Member Handbook, available at CalSTRS.com/publications. Your Retirement Progress Report includes estimates if you’re age 45 or older and have at least five years of service credit.

Consider purchasing additional service credit

•	Birth certificate or other acceptable verification of birthdate, such as a state-issued ID, birth record, U.S. passport photo ID page or certain U.S. military IDs, for each option beneficiary.

•	Marriage certificate or other proof of a name change, if your option beneficiary’s name is different from the name on their birth certificate.

to increase your benefit if you did not purchase it earlier in your career and you have eligible service to purchase. Your purchase must be paid in full before your retirement date. See the Purchase Service Credit Now fact sheet available at CalSTRS.com/publications.

Consider making a preretirement election of an option to provide a lifetime monthly benefit to someone if you should die before retirement. Find the Preretirement Election of an Option form on myCalSTRS and at CalSTRS.com/forms. See the Member Handbook to learn the advantages and disadvantages.

Make sure your one-time death benefit recipient information is current. You can find your recipient information in your myCalSTRS account under Manage Your Beneficiary Selections. You can name or update a recipient using myCalSTRS or the Recipient Designation form, available at CalSTRS.com/forms.

Consider rolling over your Defined Benefit Supplement funds to CalSTRS Pension2. Visit Pension2.com or call 888-394-2060 to learn more.

6     Your Retirement Guide 2024

Note: If you elected an option beneficiary before retirement, you may still need to verify your beneficiary’s birthdate.

If a portion of your CalSTRS benefit was awarded to another party:

•	A complete certified copy of your community property settlement documents. For more information, see the Community Property Guide at CalSTRS.com/publications.

Notify your employer that you intend to retire. When you resign from your CalSTRS-covered position, ask your employer which forms
they require.

Complete section 1 of the Express Benefit Report form, available at CalSTRS.com/forms. then submit the form to all employers from your last school year so they can complete
the employer sections, even if you do not have unused sick leave. Your employers must also report your last day of work, vacation or compensated approved leave on this form.

Complete and submit your Service Retirement Application using myCalSTRS for faster processing, or complete the paper application available at CalSTRS.com/forms.

Step 1: Research your retirement decisions

You have choices to explore and decisions to make regarding your Defined Benefit Program pension and your Defined Benefit Supplement account funds. Attending a CalSTRS retirement planning session and researching information on your own can help you make the best decisions for your retirement.

Defined Benefit Program pension

When you’re eligible to retire, you’ll receive a guaranteed lifetime retirement benefit. Your benefit amount is based on a formula determined by a fixed percentage of your final compensation based on your age when you retire and your years of service:

service credit × age factor × final compensation = retirement benefit

Defined Benefit Supplement Program account

This account provides additional money for retirement. The funds in your Defined Benefit Supplement account generally come from outgrowth, or extra-pay assignments, such as yearbook or science club adviser, soccer coach or band director. This account earns a guaranteed interest rate, and when you retire, you’ll receive all the funds in your account.

Learn about the retirement process

Now that you’re ready to retire, sign up for our My Retirement Decisions webinar. It covers the decisions you’ll need to make, including if you want to elect
an option beneficiary, how to complete the Service Retirement Application, and what you’ll need to know after retirement. Register at CalSTRS.com/webinars.

Schedule a benefits planning session

Our benefits specialists can help you plan your CalSTRS retirement by providing estimates and explaining how different choices will affect your benefit. You can talk
to a benefits specialist over the phone, in person at a CalSTRS member service center or in an online benefits planning session.

Schedule an individual or group benefits planning session six to 12 months before your retirement date. Appointments are scheduled two to six weeks in advance, and it’s easier to schedule during the nonpeak months of August through March. To schedule a benefits planning session, call 800-228-5453.

Considerations

When preparing to retire, ask yourself these questions:

•	Am I eligible to retire?

•	How much will my benefit be each month?

•	Am I able to purchase service credit?

•	How do I choose my retirement date?

•	Do I want to provide a monthly benefit to someone after I die?

•	How do I want to receive my Defined Benefit Supplement funds?

Your Retirement Guide 2024 7

CalSTRS Defined Benefit Program

As a California public school prekindergarten through community college teacher or administrator, you’re eligible for lifetime monthly income in retirement.

When am I eligible to retire?

Your age and service credit are used to determine your eligibility for a CalSTRS retirement benefit.

If you’re a CalSTRS 2% at 60 member, you’re eligible to retire under the CalSTRS Defined Benefit Program if you’re either age 50 and have at least 30 years of service credit, or age 55 and have at least five years of service credit.

If you’re at least age 55 and a member of certain other public retirement systems in California, you may retire with fewer than five years of service credit if you service retire from both systems at the same time. See page 20 for more information about concurrent retirement and a list of eligible systems.

If you’re a CalSTRS 2% at 62 member, you can retire at age 55 with five years of service credit— or fewer under the special circumstances of concurrent retirement.

Determine whether you’re a CalSTRS 2% at 60 member or a CalSTRS 2% at 62 member, plus find your service credit balance, by checking your Retirement Progress Report.

How do I choose my retirement date?

Before you can officially retire with CalSTRS, you must complete the Service Retirement Application and choose your retirement date. You will be officially retired as of the retirement date you put on your application.

The earliest date you can retire is the day after your last day of work, vacation or compensated approved leave, whichever is later. You must also include your last day of work, vacation or compensated approved leave on your application, which must be before your retirement date. Your employer will verify this date on the Express Benefit Report.

Your first benefit payment will be calculated from your retirement date through the end of the month in which you retire. If your retirement date is not the first day of the month, your benefit payment will be prorated for that month.

Retiring before the end of the school year? Talk to a CalSTRS benefits specialist before retiring midyear
to determine how that could                See affect your retirement.                        page

12
8     Your Retirement Guide 2024

How your benefit is calculated

Your retirement benefit is based on a formula that provides a fixed percentage of your final compensation based on your age when you retire and your years of service:

service credit × age factor × final compensation = your retirement benefit

Service credit

Service credit is the number of years, including partial years, you have worked and contributed to CalSTRS:

Age factor

The age factor is the percentage of your final compensation you’ll receive as a retirement benefit for every year of service credit. The percentage is

•	You earn service credit every day you work or are on paid leave.

determined by your age on the last day of the month in which your retirement is effective.

•	You can earn up to 1.000 year of service credit in one school year. If you work less than full time, your service credit for the school year may be less than 1.000.

For part-time, temporary, substitute or adjunct educators, service credit for one school year is equal to the salary you actually earned in an assignment divided by your annualized pay rate for that assignment. If you work multiple assignments,
your service credit is the total service credit you earn from all your individual assignments, up to one year of service credit in a school year. See the Member Handbook for examples.

A school year is July 1 through June 30.

If you earn more than one year of service credit by performing outgrowth, or extra-pay, assignments, a portion of your contributions and your employer’s contributions on service performed in excess
of one year are credited to your Defined Benefit Supplement account.

For CalSTRS 2% at 60 members, the basic age factor is set at 2% at age 60. If you retire before
age 60, the age factor gradually decreases to 1.10% at age 50. If you retire after age 60, it increases to a maximum of 2.40% at age 63. If you qualify for the 0.20% career factor by having at least 30 years of service credit, you reach the maximum age factor of 2.40% at age 61 and six months.

For CalSTRS 2% at 62 members, the basic age factor is set at 2% at age 62. If you retire before age 62, it gradually decreases to 1.16% at age 55 and increases to a maximum of 2.40% at age 65. You’re not eligible for the career factor enhancement.

Note: If you backdate your retirement date, your monthly benefit may be lower if your age factor changes, though you will receive one retroactive lump-sum payment up front.

Be sure to confirm the accuracy of the birthdate we have on record for you by logging into your myCalSTRS account at myCalSTRS.com and selecting Update your profile.

You can receive a benefit estimate from one of our benefits specialists, or you can use the Retirement Benefits Calculator at CalSTRS.com/calculators or the benefit estimate worksheets in the Member Handbook.

Your Retirement Guide 2024 9

Final compensation

Final compensation is your highest average annual compensation earnable over a period of time, either 12 or 36 consecutive months depending on your benefit structure and years of service credit.

For CalSTRS 2% at 60 members, if you have 25 or more years of service credit at retirement, we will use 12 consecutive months of your highest average annual compensation earnable.

If you have fewer than 25 years of service credit, and you’re not an eligible classroom teacher who has a collectively bargained final compensation period of 12 consecutive months, your final compensation
is based on your highest average compensation earnable during any period of 36 consecutive months of paid employment covered by CalSTRS.

For CalSTRS 2% at 62 members, your final compensation is based on your highest average annual compensation earnable during any
36 consecutive months.

Compensation earnable

Your annual compensation earnable for a school year is the weighted average of the amount you would have been paid if you had worked in each of your assignments on a full-time basis, plus any remuneration in addition to salary, not including service for which contributions are credited to your Defined Benefit Supplement account. If you retire before the end of the school year, or if there are
months you did not perform creditable service, your final compensation may be affected.

For CalSTRS 2% at 60 members, if you became a member on or after July 1, 1996, there is a cap
on compensation that counts toward your CalSTRS retirement benefit. For the 2023–24 fiscal year, the limit is $330,000.

For CalSTRS 2% at 62 members, there is a cap on compensation that counts toward your CalSTRS retirement benefit. The cap is adjusted annually based on changes in the Consumer Price Index for All Urban Consumers: U.S. City Average. The cap is $176,614 for the 2023–24 fiscal year.

Note: You can find the 2024–25 fiscal year compensation caps at CalSTRS.com/limits.

Retirement incentives

Check to see if your employer offers a retirement incentive through CalSTRS that may increase your service credit. Ask about application deadlines and retirement dates to qualify.

If your employer offers a retirement incentive through CalSTRS and you qualify, it cannot be included in your benefit calculation until we receive the Express Benefit Report form and all required documentation from your employer.

If you receive additional service credit and take any job, including substitute teaching, as an employee, independent contractor or as an employee of a third party within five years of retirement with the employer that offered the incentive, or receive unemployment benefits within one year of your retirement date, you will lose the additional service
credit and corresponding benefit increase starting in the first month a prohibited activity occurs.

In addition, if you receive a retirement incentive and later reinstate to active membership, you will lose the additional service credit and corresponding benefit increase granted under the incentive.

Career factor

For CalSTRS 2% at 60 members, if you retire with at least 30 years of qualified service credit,
a bonus of 0.20% will be added to your age factor, up to the maximum combined age and career factor of 2.40%. When you retire, up to two-tenths of one year of unused sick leave can count toward
qualifying for the career factor. Neither service credit from a retirement incentive nor the purchase of nonqualified service credit can be used to qualify for the career factor.

For CalSTRS 2% at 62 members, you’re not eligible for the career factor enhancement.

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Longevity bonus

For CalSTRS 2% at 60 members, the longevity bonus is automatically applied to your monthly benefit if you earned at least 30 years of qualified service on or before December 31, 2010. The amount of the monthly bonus is based on your total years of qualifying service credit at retirement.

Service credit
	Longevity bonus
	
30 years
	$200
	
31 years
	$300
	
32 or more years
	$400

The bonus will be reduced by an option factor if you choose an option beneficiary.

For CalSTRS 2% at 62 members, you’re not eligible for the longevity bonus.

Sick leave

Each employer you worked for during the last year you earned creditable compensation must submit the Express Benefit Report form. We will convert your unused sick leave to service credit at retirement using the information your employer reports on
this form. If your employer submits the form after you submit your retirement application, it will not delay your initial benefit. Your full benefit will be recalculated once we process all Express Benefit Report forms submitted.

If you work full time, the number of accumulated unused sick leave days will be divided by the number of base service days required to complete your last school term.

CalSTRS will convert your unused sick leave to service credit at retirement. Each of your employers during the last school year in which you earned creditable compensation must submit an Express Benefit Report form.

Sick leave service credit cannot be used to meet eligibility requirements for service retirement. However, if you’re a CalSTRS 2% at 60 member, up to two-tenths of one year of unused sick leave may be used to qualify for the career factor, the 25-year threshold for one-year final compensation, and an increased longevity bonus if you qualified for the longevity bonus on or before December 31, 2010.

Each employer during your last school year submits an Express Benefit Report that provides your unused sick leave balance to CalSTRS. If you have unused sick leave with employers from previous years, those sick leave balances are only eligible for CalSTRS service credit if transferred to an employer submitting an Express Benefit Report
for you. CalSTRS does not govern the transfer of unused sick leave between employers. To
determine if your previous sick leave is eligible for transfer, contact your previous employer to see if it meets requirements.

For retirements effective before January 1, 2013, only your last employer can report unused sick leave by submitting the Express Benefit Report form to CalSTRS.

Your employer is required to submit the Express

accumulated days of
unused sick leave
number of base days = service credit granted
for full-time service

Benefit Report form within 30 days of your retirement date or the date CalSTRS receives your application, whichever is later—even if you don’t have unused sick leave.

If you work part time, the base service days are calculated based on the full-time equivalent.

Unfamiliar with a term? See the glossary starting on page 34.

Your Retirement Guide 2024 11

?

Midyear retirement

If you retire in the middle of the school year, your final compensation may be lower than expected if you received a salary increase toward the end of your career. This is because, for a midyear retirement, CalSTRS may have to include the monthly average
of your prior year’s compensation earnable as part of your final compensation calculation. The
calculation will have more of an effect if you’re under the CalSTRS 2% at 60 benefit structure and have at least 25 years of service credit because your final compensation will be based on a 12-month period.

For example, if you have 25 years of service credit, earned $66,000 last year and would have
earned $72,000 this year, your final compensation calculation for a January 1 retirement date would be:

$66,000 ÷ 12 months = $5,500 × 6 months =         $33,000 $72,000 ÷ 12 months = $6,000 × 6 months =     + $36,000 $69,000

$69,000 ÷ 12 months =	$ 5,750

Your final compensation would be $5,750—lower than the $6,000 final compensation you would have earned by finishing out the school year.

Taking on additional assignments at a lower pay rate may also reduce your final compensation if you choose a midyear retirement. This is because your annual compensation earnable is prorated to your retirement date and is an average of the various pay rates you receive during that period.

In addition, retiring midway through the school term while working under the Reduced Workload Program will result in ineligibility for the program and may negatively affect your service credit and final compensation.

See the Member Handbook available at CalSTRS.com/publications for more information.

Receive your monthly payment by direct deposit

Direct deposit gives you the quickest access to your benefit payment—your money gets securely deposited into your checking or savings account every payday.

Sign up using your myCalSTRS account or complete the Direct Deposit Authorization form, available at CalSTRS.com/forms. Your first payment will be deposited into your account 60 to 90 days after we receive the authorization.

To learn more, go to CalSTRS.com/direct-deposit.

Did you know

72% of retired CalSTRS members are confident or very confident they’ll be able to meet their financial needs throughout retirement.

—2023 CalSTRS member survey

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Do you want to provide a monthly benefit to someone after you die?

You can choose to provide a lifetime monthly benefit to one or more persons, or a special needs trust, after you die. In exchange, you’ll receive a reduced retirement benefit.

Member-Only Benefit

If you choose not to provide a monthly benefit to someone after you die and you did not make a preretirement option election, you’ll receive your full retirement benefit, known as the Member-Only
Benefit. This is the highest monthly benefit possible and will continue throughout your lifetime, stopping at the time of your death. Any contributions and interest remaining in your account at the time of your death will be paid to your one-time death benefit recipient.

Modified Benefit

If you choose to provide a monthly benefit to one or more persons, or a special needs trust, after you die, you will need to choose the Modified Benefit, elect an option and designate one or more beneficiaries.

Providing for one beneficiary

If you would like to provide a monthly benefit to one beneficiary after you die, you can elect the 100% Beneficiary Option, the 75% Beneficiary Option or the 50% Beneficiary Option, or you can name one beneficiary and keep a portion of your benefit as a Member-Only Benefit by electing the Compound Option.

Electing one of these options will reduce your monthly benefit for as long as you and your beneficiary are living. The amount your monthly benefit will be reduced is based on the option you choose, your age and the age of your beneficiary. See the Modified Benefit example on the next page for more information.

Providing for more than one beneficiary

If you would like to provide a monthly benefit to more than one beneficiary after you die, elect the Compound Option. You can either:

•	Name two or more option beneficiaries, with an option choice for each, and keep a portion of your benefit as a Member-Only Benefit.

OR

•	Name two or more option beneficiaries, with an option choice for each, and not keep any of your benefit as a Member-Only Benefit.

If one of your beneficiaries dies before you, your benefit will increase, but the benefit payable to any living beneficiaries will not be adjusted.

To elect the Compound Option, complete and submit the Compound Option Election form with your Service Retirement Application. See the Member Handbook for more information.

More option information

Your option beneficiary can be a living person or a special needs trust but cannot be another type of trust, estate, charity or other entity. You may change an existing option beneficiary to a special needs trust without penalty if the trust’s beneficiary is the same person as the previously named option beneficiary.

We may ask you to verify your birthdate and will ask you to verify the birthdates of your option beneficiaries.

You can learn how an option would affect your retirement benefit by reading the Modified Benefit example on the next page, using the Retirement Benefits Calculator at CalSTRS.com/calculators or attending a CalSTRS and Your Retirement benefits planning session where you’ll receive a personalized estimate prepared by a CalSTRS benefits specialist. Call us at 800-228-5453 to schedule a session.

Note: If you elected an option before January 1, 2007, your option may have different rules. Verify your current option on your Retirement Progress Report at myCalSTRS.com or by calling us.

Your Retirement Guide 2024 13

Modified Benefit example Providing for one beneficiary

Daniel is planning to retire at age 60. His Member-Only Benefit will be $3,750, which is the highest monthly benefit possible based on his age at retirement, his years of service credit and his final compensation. His spouse will be age 57 when he retires, and he wants to provide a monthly benefit to him after he dies. To do so, Daniel can elect one of the options below or the Compound Option.

$3,750	$3,750	$3,750

$3,750 Member-Only Benefit
	
$3,311	$3,311
		
$3,436
		$3,545

$1,772

$2,577

													

B
	100% eneficiar Option
	
y
		
B
	75% eneficiar Option
	
y
		
B
	50% eneficiar Option
	
y

Daniel’s benefit when both he	Spouse’s benefit if Daniel dies.	Daniel’s benefit if his spouse dies. and his spouse are living.

Note: Amounts in this example are rounded to the nearest whole dollar.

100% Beneficiary Option

If Daniel chooses the 100% Beneficiary Option, his monthly benefit will be reduced to $3,311 in
exchange for providing the same amount of money to his spouse each month after he dies.

75% Beneficiary Option

If Daniel chooses the 75% Beneficiary Option, his monthly benefit will be reduced to $3,436, and his spouse will receive the equivalent of 75% of his benefit each month after he dies.

50% Beneficiary Option

If Daniel chooses the 50% Beneficiary Option, his monthly benefit will be reduced to $3,545, and his spouse will receive the equivalent of 50% of his benefit each month after he dies.

For each option, if Daniel’s spouse dies before he does, Daniel’s monthly benefit will rise to his Member-Only Benefit amount of $3,750.

To learn how Daniel can provide for more than one beneficiary after he dies by choosing the Compound Option, see the CalSTRS Member Handbook available at CalSTRS.com/publications.

14     Your Retirement Guide 2024

Nonspouse option beneficiary age rules

If you name someone other than your spouse or a former spouse as your option beneficiary, the type
of option you can elect depends on your age and the age of your beneficiary:

Divorce or separation

If your option beneficiary is your current or former spouse or registered domestic partner and a final decree of dissolution of marriage or judgment
of nullity was entered, or an order of separate

•	 Under the 75% Beneficiary Option, your nonspouse option beneficiary cannot be more than exactly 19 years younger than you.

•	Under the Compound Option, your nonspouse option beneficiaries cannot be either:

maintenance was made, your option may be changed or canceled in compliance with the court order or judgment. In addition, an assessment
may apply. For more information, see the Community Property Guide at CalSTRS.com/publications.

»	More than exactly 19 years younger than you under the 75% Beneficiary Option, OR

Preretirement election of an option

If you’re eligible to retire or are a concurrent member

»	More than exactly 10 years younger than you under the 100% Beneficiary Option.

These federal age restrictions also apply to registered domestic partners and special needs trust beneficiaries.

Reinstatement and option elections

If you’re reretiring within 12 months of your most recent reinstatement date, you may not make changes to your retirement option or beneficiaries. If you’re reretiring and at least one year has passed since your reinstatement, you may keep your same option or make changes. If you make changes,
your subsequent monthly retirement benefit will be subject to an assessment that may reduce your benefit for your lifetime.

If your option beneficiary dies, your option will be canceled automatically and an assessment will apply. For the remainder of the one-year waiting period, you will have the Member-Only Benefit. If you retire again before the year is over, you will retire with the Member-Only Benefit.

Changing or canceling an option election

To change or cancel your option election after you submit your Service Retirement Application, you must submit the Service Retirement Application Change Request form, found at CalSTRS.com/forms, no later than 30 days from the date your first service retirement benefit payment is issued.

You cannot change or cancel your option election after you’re retired and the 30-day deadline has passed, except under limited circumstances.

of another California public retirement system (see page 20) age 55 or older, you can make a preretirement election of an option to provide your loved ones with a lifetime monthly benefit if you should die before your retirement date. Complete
the Preretirement Election of an Option form online using your myCalSTRS account or download the form at CalSTRS.com/forms.

If you die before retirement, your beneficiaries will receive a lifetime monthly benefit based on the reduced benefit you would have been paid if you had retired on the date of your death.

If you cancel or change your preretirement election of an option before you retire, your monthly retirement benefit will be subject to an assessment that may reduce your benefit for your lifetime. In addition, if your beneficiary dies before you retire, your monthly retirement benefit may be reduced for your lifetime. If you have questions, contact us to schedule a session with a benefits specialist.

Note: If you’re a concurrent member of another California public retirement system, age 55 or older with less than five years of CalSTRS service credit, we will verify your retirement eligibility with the other retirement system. If you were ineligible for concurrent retirement at the time of election or at the time of death, your election will be void.

After you retire, you may change your option beneficiary only under limited circumstances. For more information, see the Member Handbook at CalSTRS.com/publications.

Your Retirement Guide 2024 15

Your Defined Benefit Supplement Program decisions

Defined Benefit Supplement fund distribution

Your most recent Retirement Progress Report, available at myCalSTRS.com, shows your Defined Benefit Supplement balance at the end of the last school year.

If you have less than $3,500 in your Defined Benefit Supplement account on your retirement date, you’ll receive the account balance as a lump-sum payment. Your lump-sum payment may be paid directly to you or rolled over to a qualified plan, such as CalSTRS Pension2, if you have at least $200 in your account to roll over.

If you have $3,500 or more in your Defined Benefit Supplement account on your retirement date, you can choose a lump-sum payment, an
annuity payment or a combination of the two.

Your annuity choices depend on whether you elect the Member-Only Benefit or the Modified Benefit for your retirement benefit (see page 13).

Your Defined Benefit Supplement annuity beneficiaries

Your Defined Benefit Supplement period-certain annuity beneficiary is the same person or entity you designate as your one-time death benefit recipient. Your Defined Benefit Supplement lifetime annuity beneficiary is the same person or persons, or special needs trust, you designate as your Defined Benefit option beneficiary.

Watch the three Defined Benefit Supplement member education videos at CalSTRS.com/videos to learn more.

Defined Benefit Supplement rollovers

If you decide to roll over your Defined Benefit Supplement funds into Pension2, you can complete and submit your application on myCalSTRS since we will obtain the required financial institution representative signatures on your behalf.

If you decide to roll over your Defined Benefit Supplement funds to a financial institution other than Pension2, a financial institution representative’s signature or a Letter of Acceptance is required. You can still fill out your application on myCalSTRS,
but you’ll need to print the application, obtain the required signatures, sign it yourself—your spouse or registered domestic partner will also need to sign— and submit your completed form to CalSTRS.

16     Your Retirement Guide 2024

Defined Benefit Supplement payment choices

With a Defined Benefit Supplement account balance of $3,500 or more, you have three payment choices:

1. Lump-sum payment
This is a one-time payment of the total amount in your Defined Benefit Supplement account as either a direct payment or a rollover to a qualified plan, such as Pension2, if you have at least $200 in your account to roll over.

•	If you choose the Modified Benefit for your Defined Benefit Program retirement benefit and would like to receive lifetime monthly
payments from your Defined Benefit Supplement account, you must elect a beneficiary annuity. The amount of your monthly annuity payment depends on the percentage of your payment that you choose to have paid to your beneficiaries upon your death, and the same age restrictions as those for the Defined Benefit Program option beneficiary apply (see page 15):

2. Annuity payments

You can elect to receive your Defined Benefit Supplement funds through a series of monthly payments by electing either a period-certain annuity or a lifetime annuity.

Period-certain annuities provide a monthly payment made for any number of whole years from three to 10. The monthly amount you receive is based on the

»	100% Beneficiary Annuity. All of your monthly annuity amount will be paid monthly to your option beneficiary upon your death.

»	75% Beneficiary Annuity. Seventy-five percent of your monthly annuity amount will be paid monthly to your option beneficiary upon your death.

number of years over which the annuity is paid—the lower the number of years, the higher the amount you receive monthly. If you die before the annuity period ends, the remaining amount will be paid to your one-time death benefit recipient.

A period-certain annuity of three to nine years is eligible for rollover to a qualified plan—unless you’re subject to the federal required minimum distribution rule. A period-certain annuity of 10 years cannot be rolled over.

Lifetime annuities provide a monthly payment for your lifetime (if you elect the Member-Only
Benefit for your Defined Benefit Program retirement benefit) or your lifetime and the lifetimes of your

»	50% Beneficiary Annuity. Fifty percent of your monthly annuity amount will be paid monthly to your option beneficiary upon your death.

•	If you choose the Compound Option for your Defined Benefit Program retirement benefit and would like to elect the Modified Benefit for your Defined Benefit Supplement funds, you may elect any of the modified beneficiary annuities. The annuity you elect will be the same for each of your beneficiaries, and the apportionment
of the benefit will be the same as you elect for your Defined Benefit Program monthly retirement benefit.

beneficiaries (if you elect the Modified Benefit for your Defined Benefit Program retirement benefit). Lifetime annuities cannot be rolled over—they must be paid directly to you.

3. Combination lump-sum and annuity payment You can receive a portion of your Defined Benefit Supplement account as a lump-sum payment and the remaining balance as an annuity. To elect this

•	If you choose the Member-Only Benefit for your Defined Benefit Program retirement benefit and would like to receive lifetime monthly payments from your Defined Benefit Supplement account, you must elect the Member-Only Annuity.
Any balance remaining in your accounts upon your death will be paid to your one-time death benefit recipient.

choice, you must have at least $3,500 remaining in your Defined Benefit Supplement account after your lump-sum payment is made.

Your Defined Benefit Supplement lifetime annuity beneficiary is the same person you designate as your Defined Benefit Program option beneficiary.

Your Retirement Guide 2024 17

Tax consequences for Defined Benefit Supplement distributions

If you choose to receive your distribution as a lump-sum payment or a period-certain annuity of three to nine years paid directly to you, we are required to withhold at least 20% federal income tax from your payments. You may elect a higher percentage of federal tax if you choose. Unless you elect not to have California tax withheld or
you’re not a resident of California, we will withhold state tax at 2%. If you do a rollover, your rollover-eligible distributions will not be taxed at the time of distribution (unless you roll over to a Roth IRA) but instead will be taxed when you withdraw your funds.

See the Service Retirement Application and Tax Considerations for Rollovers booklet at CalSTRS.com/forms-publications for more information.

One-time death benefit

You can designate a recipient to receive a one-time, lump-sum payment and any
remaining period-certain annuities after your death. This one-time recipient is different from the Defined Benefit Program option beneficiary who would receive a lifetime monthly benefit after your death.

If you elect a period-certain annuity for your Defined Benefit Supplement payment, your one-time death benefit recipient is also your period-certain annuity beneficiary.

Log in to your myCalSTRS account or use the Recipient Designation form, available at CalSTRS.com/forms, to designate a recipient. The one-time death benefit recipient can be a living person or an estate, trust, charity or other entity.

18     Your Retirement Guide 2024

Your other considerations

Return of excess member contributions

If you make contributions on earnings in excess of one year of service, you’re eligible for a return of your contributions that exceed the contribution rate for Defined Benefit Supplement compensation—8% for CalSTRS 2% at 60 members and 9% for CalSTRS
2% at 62 members.

Any excess member contributions you made during the school year are reported on your Retirement Progress Report in mid-September. Your myCalSTRS account shows a breakdown of excess contributions by employer.

We will return excess member contributions to your employer in late September. Your employer is responsible for returning your excess member
contributions to you, less any authorized adjustments or tax withholding. If you have questions regarding the return of your excess contributions, contact
your employer.

Your returned pretax member contributions are considered taxable income in the year you receive the funds regardless of when you initially paid
the contributions.

Community property settlements

If you divorce or legally separate from your spouse or terminate your registered domestic partnership while a CalSTRS member, your benefits may be subject
to a community property settlement. When a court order specifically requires your benefits to be divided, CalSTRS must receive:

•	A complete certified copy of your final court judgment of dissolution, legal separation or termination of domestic partnership.

•     A full copy of any settlement agreement, including exhibits and attachments.

If we have not received your documents, we may ask you to provide them. Failure to provide the required documents may result in your benefit payment being delayed without interest.

For more information, see the Community Property Guide at CalSTRS.com/publications.

Receive service retirement benefits during evaluation of your disability benefits application

If you have been injured, are unable to work and are considering applying for a CalSTRS disability benefit, you can apply to receive a monthly retirement benefit while your disability application is evaluated if you’re eligible for service retirement.

If you do retire and your disability application is not approved, you’ll remain on service retirement and will not be eligible for disability benefits.

A CalSTRS benefits specialist can help you understand your disability benefit coverage, provide estimates and assist you with your application.

Learn more in Your Disability Benefits Guide at CalSTRS.com/publications. You can find the Disability Benefits Application at CalSTRS.com/forms.

Your Retirement Guide 2024 19

Concurrent retirement: Retiring from another California public retirement system

If you’re at least age 55 and a member of certain other California public retirement systems, you may retire with fewer than five years of CalSTRS service credit if you retire for service concurrently from both systems. To receive concurrent benefits, you must service retire on the same day from both systems. Or you may service retire on different dates as long as you do not perform service creditable to either system between those dates.

Each retirement system may have its own conditions for concurrent retirement. To learn about your

If you worked under CalSTRS-covered employment and another public retirement system in the same pay period during the period of service used to calculate your final compensation, your highest average annual compensation earnable under CalSTRS-covered employment will be used to calculate your CalSTRS benefit. Even if your compensation is higher under
the other retirement system, we will use only your CalSTRS highest average annual compensation earnable to determine your final compensation.

You can have concurrent membership with the following California public retirement systems:

•	California Public Employees’ Retirement System

•	University of California Retirement Plan

eligibility for these provisions under another system’s rules, and to find out how concurrent retirement
can contribute to your benefits from another system in retirement, contact the other retirement system directly.

For some systems, if you service retire from CalSTRS

•	San Francisco Employees’ Retirement System

•	Legislators’ Retirement System

•	The following California county retirement systems enacted under the County Employees Retirement Law of 1937:

and the other system concurrently, your benefits may be based on the highest compensation you could have earned for services performed on a full-time basis under any system as long as you do not work under CalSTRS or another system between the dates you retire from each system.

Alameda
	Mendocino
	San Mateo
	
Contra Costa
	Merced
	Santa Barbara
	
Fresno
	Orange
	Sonoma
	
Imperial
	Sacramento
	Stanislaus
	
Kern
	San Bernardino
	Tulare
	
Los Angeles
	San Diego
	Ventura
	
Marin
	San Joaquin

Reduced Benefit Election

If you’re a CalSTRS 2% at 60 member between the ages of 55 and 60 and have at least five years of service credit, you can apply for retirement under the Reduced Benefit Election. You’ll receive one-half of your monthly retirement benefit calculated as if you were age 60. The reduced benefit will continue for the same number of months after age 60 that you received benefits before age 60. After that, you’ll receive your full retirement benefit.

You’re not eligible for this program if you previously received a service retirement or disability benefit from CalSTRS, if you’re a CalSTRS 2% at 62 member, or if you’re applying for service retirement while your disability application is being evaluated.

If you want to elect the Reduced Benefit Election, submit the Reduced Benefit Election form with your Service Retirement Application. You can complete and submit the form online with your Service Retirement Application using myCalSTRS or download the form at CalSTRS.com/forms. The form includes an example to help you determine if this option is right for you.

Consult with a CalSTRS benefits specialist to make sure you fully understand the program and how it could affect your retirement benefits. Call 800-228-5453 to schedule an appointment.

20     Your Retirement Guide 2024

Health insurance premium deductions

CalSTRS does not provide health or dental insurance coverage for members. However, state law requires school districts to offer retiring CalSTRS members the option to continue their medical and dental insurance at their own cost. Your health insurance premiums may be partially or fully paid by your school district after retirement, depending on your collective bargaining agreement. Benefits vary from district to district.

If you’re interested in a health insurance deduction, contact your employer’s human resources department. We can deduct health premiums from your monthly retirement benefit and forward them to your health insurance carrier, if your carrier has an agreement with us. We will set up a deduction for you after we receive the appropriate paperwork from your employer or administering organization. To cancel, verify coverage information or change premium amounts, contact your employer or administering organization.

Medicare Premium Payment Program

The CalSTRS Medicare Premium Payment Program, which pays Medicare Part A premiums for eligible retired members, is not offered to members with a retirement date on or after July 1, 2012. Your most recent retirement date is used to determine your eligibility. See the Member Handbook to learn more.

Medicare Premium Deduction Service

If you’re enrolled in both Medicare Part A and Part B, you may have your Part B premiums deducted
from your monthly benefit by submitting the Medicare Payment Authorization form, available at CalSTRS.com/forms, along with a copy of your most recent unpaid Medicare Premium bill.

Note: There may be advantages to paying your Medicare premiums directly through the Centers for Medicare and Medicaid Services. You must decide what is best for your situation.

Dues deductions

Several associations, including the California Retired Teachers Association, California Teachers Association and Association of California School Administrators, have arranged to have dues deducted from CalSTRS retirement payments.

If you’re interested in having your dues deducted from your retirement payments, contact the association (see listing on page 25). After we receive the appropriate paperwork from the association, we will set up a deduction. To cancel a deduction, you’ll need to contact the association directly.

Your retirement benefit and Social Security

As a member of CalSTRS, you do not pay into Social Security, so you do not earn Social Security benefits for your
CalSTRS-covered work. If you’re counting on a Social Security benefit through other employment or your spouse, two federal rules—the Windfall Elimination Provision and the Government Pension Offset—may leave you with less Social Security income in retirement than you expected.

Social Security is a federal program, and neither CalSTRS nor the State of
California has control over Social Security eligibility requirements or benefit or offset calculations. Your CalSTRS retirement benefit will not be reduced or eliminated by these two rules.

For more information, contact Social Security at 800-772-1213 or visit ssa.gov/gpo-wep where you’ll also find calculators.

Your Retirement Guide 2024 21

Working after retirement	You cannot:

You can continue to receive your full CalSTRS retirement benefit, with no earnings limitations, if you take a job outside of CalSTRS-covered employment, including work in:

•	Earn any pay without affecting your retirement benefit if you return to work before the 180-calendar day separation-from-service requirement.

•	Earn more than the annual earnings limit without

•	Private industry outside of the California public school system.

•	Private schools.

affecting your CalSTRS retirement benefit.

•	Work in a classified position except, under certain circumstances, as a teacher’s aide.

•	Public schools outside of California.

•	University of California or California State University systems.

If you return to work and perform retired member activities in the California public school system as an employee, an independent contractor or an
employee of a third party, except under a very narrow exception, there are restrictions under California state and federal law.

In addition, if you retired under the Retirement Incentive Program, you will lose the ongoing increase in your benefit from the incentive if you take any job, including substitute teaching, as an employee, an independent contractor or an employee of a third party within five years of retirement with the employer that offered
the incentive.

See the Working After Retirement fact sheet at CalSTRS.com/publications and view the video at CalSTRS.com/videos.

Where will you work after retirement?

California public school system

Did you receive a retirement incentive?

Other employment

No restrictions

Yes

Learn about how returning to work can affect your incentive

No

When will you return?

Before 180 days	After 180 days

Learn about the separation-from-service requirement and the annual earnings limit

Learn about the annual earnings limit

Note: You generally cannot work in a classified school position while receiving a retirement benefit.

22     Your Retirement Guide 2024

Separation-from-service requirement

If you return to work and perform retired member activities, your retirement benefit will be reduced dollar for dollar by any compensation earned— including employer contributions to tax-sheltered annuities and other tax-favored products—during the first 180 calendar days following your most recent retirement date, up to your benefit payable during that period.

There are no exemptions from the separation-from-service requirement if you’re under normal
retirement age or you received a retirement incentive. There is a narrow exemption if you’re over normal retirement age. The requirement may not apply if your appointment is necessary to fill a critically needed position, you did not receive any financial inducement to retire, and your termination of service was not the cause of the need to acquire your services. Starting July 1, 2024, the employer must not have had a reduction-in-force layoff within the prior 18 months for you to be eligible for this exemption.

Your employer must submit documentation substantiating your eligibility for this exemption to us. Within 30 calendar days after we receive all the required documents, we will determine if the exemption is approved and let you and your employer know.

Your employer should submit the documentation well before your expected start date to allow time for us to confirm whether you’re approved for an exemption before you start working.

Normal retirement age

CalSTRS 2% at 60          CalSTRS 2% at 62 60                           62

If you return to work after the 180-calendar day separation-from-service requirement and perform retired member activities as an employee, an independent contractor or an employee of a third party, you can earn up to the annual postretirement earnings limit without affecting your benefit.
If your earnings from your work performing retired member activities—including employer contributions to tax-sheltered annuities and other
tax-favored products—exceed the annual earnings limit, we will withhold all of your gross monthly retirement benefit until we collect your excess earnings in full, up to the amount of your annual retirement benefit, minus reductions due to the separation-from-service requirement.

The earnings limit for the 2023–24 school year is $50,655. Check CalSTRS.com/limits for the 2024‒25 earnings limit.

Any amount you earn performing retired member activities during the first 180 calendar days of retirement will also count against the annual postretirement earnings limit for the appropriate fiscal year.

For example: If you perform retired member activities in the 2023–24 school year after the first 180 calendar days following retirement and earn $54,000, you will have exceeded the annual
earnings limit of $50,655 by $3,345. If your annual retirement benefit is $3,345 or more, then we will withhold your monthly retirement benefits until we collect $3,345.

Exclusion from the earnings limit for certain third-party employers

You may be excluded from both the earnings limit and other postretirement employment requirements if:

•	You return to work for a third-party employer that does not participate in a California public

Annual postretirement earnings limit

In addition to the separation-from-service requirement, you’re also subject to the annual postretirement earnings limit if you return to work and perform retired member activities.

pension system.

•	The activities performed are not normally performed by employees of a CalSTRS employer, and the activities are performed for 24 months or less.

Your Retirement Guide 2024 23

Reinstatement after retirement

You may voluntarily terminate your retirement and reinstate to active membership any time after
the date of your retirement by submitting the Reinstatement After Retirement form. You can submit this form up to six months before you plan to reinstate.

Your reinstatement date can be any day during the month in which we receive your signed Reinstatement After Retirement form. For example, if you want your retirement to end as of July 15, 2024, we must receive your form no later than July 31, 2024.

If you decide to remain retired after submitting your application, you may cancel your reinstatement application as long as we receive your request by the last day of the month in which your reinstatement was to become effective.

To learn how reinstatement could affect your future retirement benefits, meet with a CalSTRS benefits specialist.

When you’re ready to retire again

Your new retirement date must be at least one day after the date you reinstated. If you reretire within
12 months of reinstating, you may not make changes to your retirement option or beneficiaries.

If your next retirement is after 12 months have passed since you reinstated, you may change or cancel your option election, but your benefit will be subject to an assessment that may reduce your
benefit for your lifetime. Once you have retired, you may make a postretirement option change only under limited circumstances.

See the Member Handbook for more information on postretirement option changes.

Volunteering in retirement

If you volunteer during retirement, be aware that an employment arrangement that involves volunteering in a position that would otherwise be creditable to CalSTRS—such as volunteering to serve as a school principal—may be in violation of the postretirement earnings limitations.

Keep your mailing and email addresses current to avoid delays in benefits or communications.

When you submit changes using myCalSTRS or the Address Change Request form available at CalSTRS.com/forms, we will send you a letter and an email confirming the update.

24     Your Retirement Guide 2024

Retired educator organizations

Organizations for retirees provide services to their members and may be legislative advocates for bills affecting retired educators. Contact information for organizations is provided as a courtesy and not as an endorsement.

			
			
Stay informed with the Retired Educator newsletter
Once you retire, you’ll receive our Retired Educator newsletter with information specifically for retirees and beneficiaries. Released twice a year in summer and winter, the newsletter includes:
•	Information about pay dates and the annual postretirement earnings limits.
•	Updates on the Teachers’ Retirement Board, legislation and investments.
•	Details about benefits and services available for retirees.
Look for Retired Educator in the mail or request to have the newsletter emailed directly to you by
updating your newsletter preferences on myCalSTRS.

Read the latest issue of Retired Educator at CalSTRS.com/newsletters.

Association of California School Administrators 1029 J Street, Suite 500
Sacramento, CA 95814 800-608-2272 acsa.org

Faculty Association of California Community Colleges
1823 11th Street Sacramento, CA 95811 916-447-8555 faccc.org

California Federation of Teachers Administrative Office
2550 North Hollywood Way, Suite 400 Burbank, CA 91505
818-843-8226 cft.org

United Educators of San Francisco— Retired Division
2310 Mason Street

San Francisco, CA 94133 415-956-8373
uesf.org

California Retired Teachers Association 1750 Howe Avenue, Suite 630 Sacramento, CA 95825
916-923-2200 calrta.org

United Teachers Los Angeles–Retired 3303 Wilshire Boulevard, 10th Floor Los Angeles, CA 90010
213-487-5560 800-556-8852 utla.net

California Teachers Association/ National Education Association–Retired P.O. Box 921
Burlingame, CA 94011-0921 650-697-1400 cta.org/retired

Your Retirement Guide 2024 25

Your CalSTRS resources

Online

myCalSTRS

Access your account information and balances, service credit total, forms and more. Start at myCalSTRS.com.

CalSTRS.com

Find information about CalSTRS benefits and services, webinars, publications, forms, benefit estimate calculators and more at CalSTRS.com.

Stay connected

Locations

Member service centers and satellite offices are located throughout California. For current hours and to schedule an appointment, call 800-228-5453.

For the most recent listing of our offices, visit CalSTRS.com/local-offices.

Member service centers

Publications

Read about CalSTRS benefits and services. You can order a printed copy of CalSTRS publications using the forms and publications bulk ordering system at CalSTRS.com/ordering.

Publications with additional information about your CalSTRS benefits and other retirement considerations include:

Community Property Guide Concurrent Retirement Member Handbook
Social Security, CalSTRS and You Working After Retirement

Read our publications online at CalSTRS.com/publications.

Forms

Find the forms you need to update your address, change your direct deposit information, reinstate after retirement, change your tax withholding, request verification of benefits for the Social Security Administration, and more.

CalSTRS.com/forms

Fresno Glendale
Irvine

Riverside	West Sacramento	myCalSTRS.com San Diego
Santa Clara

CalSTRS ombuds

The Office of the Ombuds provides independent, impartial, confidential and informal assistance in resolving problems and conflicts that are not solved through the usual CalSTRS communication channels. The office is a place CalSTRS members and the public can voice their concerns. The ombuds will help problem solve and may recommend a variety of options toward responsibly addressing a raised concern.

To contact the ombuds, go to CalSTRS.com/ombuds.

26     Your Retirement Guide 2024

Step 2: Complete and submit your forms

You can complete and submit your Service Retirement Application online using myCalSTRS or in paper format via mail or fax.

Submit your application online

Completing and submitting your application online using myCalSTRS is easy, fast and secure, plus you’ll:

• Receive step-by-step guidance to complete your application correctly. • Save time since your member-specific information is autofilled.
• Receive an immediate email confirmation when we receive your application and after it has been processed.

• Receive prompt emails if we need additional information to process your application.

Register for an Online Service Retirement Application Demonstration at CalSTRS.com/webinars for help submitting your application online.

myCalSTRS

Activate your myCalSTRS account

Create your myCalSTRS account if you haven’t already done so. To begin, go to myCalSTRS.com and click on Register Now. If you need help, call us at 800-228-5453.

Protect your myCalSTRS account

Review your myCalSTRS account regularly to make sure your information is accurate. Choose a strong password, do not share it with others and
change it immediately if you know or suspect it has been compromised.

Your Retirement Guide 2024 27

Service retirement forms

To apply for service retirement, you’ll need to submit the Service Retirement Application. In addition, each of your employers during your last 12 months of employment must submit the Express Benefit Report form to verify your last day of work, vacation or compensated approved leave and report unused sick leave. You can find these forms at CalSTRS.com/forms, or they can be completed electronically on myCalSTRS where indicated.

Form name
	Purpose
	Reason to use this form
	On myCalSTRS
	
Required

Service Retirement Application SR0059
	
To apply for service retirement as a Defined Benefit Program member.
	Required for a service retirement. Includes distribution of your Defined Benefit Supplement funds.
	
Yes

Express Benefit Report SR0554E
	To have your employer verify your last day of work, vacation or
compensated approved leave and report unused sick leave.
	Required for verification of employment termination and unused sick leave to adjust your benefit.

No
	
Recommended

Direct Deposit Authorization AS1130
	
To send your retirement benefit directly to your financial institution.
	Provides a convenient and
safe way to receive your retirement benefit.
	
Yes

Recipient Designation MS0002
	To designate living persons, an estate, trust, charity or other entity to receive the one-time death benefit.
	Confirms your one-time death benefit wishes are recorded at CalSTRS and avoids probate for this benefit after your death.

Yes
	
Special circumstances

Justification for Non-Signature of Spouse or Registered Domestic Partner
MS1125A
	
To explain why your spouse’s or registered domestic partner’s signature is not on forms that require it.
	If you’re married or registered as a domestic partner and your spouse or registered domestic partner is unable or refuses to sign forms when required.

Yes
	
		Compound Option Election
	
To designate one or more option beneficiaries—a living person
or persons, or a special needs trust—to receive an allocation of your Member-Only Benefit with an option choice for each.
	
When you want to elect the Compound Option and are submitting a Service Retirement Application for the first time or are making a change with the Service Retirement Application Change Request form.

Yes

SR0363

This separate form must be submitted with the Service Retirement Application or the Service Retirement Application Change Request if you’re electing the Compound Option.
				
Reduced Benefit Election SR1613
This separate form must be submitted with the Service Retirement Application if you’re applying for the Reduced Benefit Election.

To elect the Reduced Benefit Election, you must be at least age 55, but under age 60, and have at least five years of service credit.
	
Receive one-half of your monthly benefit calculated as if you were age 60 for the same number of months after age 60 that you received payments before age 60. After that, you receive your full benefit.

Yes
	
Certification of a Special Needs Trust SR1854
	To designate a trust for an individual who is disabled as an option or annuity beneficiary.
	Required if one or more of your beneficiaries is a special needs trust.
	
No
	
Service Retirement Application Change Request
SR1328
	
To make a change to your application or cancel it.
	CalSTRS must receive this form within 30 days of the date your first benefit payment is issued.
	
No

28     Your Retirement Guide 2024

Submit your application in paper format

The fastest and easiest way to submit your Service Retirement Application is online via myCalSTRS. If you’d like to submit your application in paper format, be sure to submit each required form. All the forms you may need to retire are listed on the previous page.

Carefully read and follow the instructions for each form to avoid processing delays. You can print or order the forms you need at CalSTRS.com/forms. Once complete, you can mail or fax them to any CalSTRS member service center. All paper applications are processed in the order they are received. Incomplete applications are not processed and will be returned by mail.

When completing your paper retirement application and other forms, be sure to:

•	Carefully read the instructions, including the Special Tax Notice: Your Rollover Options.

•	Make photocopies of the forms beforehand in case you need to start over. You can also download and print new forms at
CalSTRS.com/forms. If you need to make a correction, draw a line through the error and make your correction, then initial and date next to the change or use a new form. Your spouse or registered domestic partner also needs to initial changes.

•	Attend a Service Retirement Application Demonstration webinar to get step-by-step instructions on filling out your application. Register at CalSTRS.com/webinars.

•	Print clearly in blue or black ink or type all information requested. Do not use pencil, erasable ink or light-colored ink.

•	Remember to sign and date your Service Retirement Application and other forms. For forms to be legally accepted by CalSTRS, you and your spouse or registered domestic partner must sign and date all forms where indicated. If your spouse or registered domestic partner cannot or refuses to sign the forms, complete the Justification for Non-Signature of Spouse
or Registered Domestic Partner form. This form may require supporting documentation.

•	Make a copy of each completed form you submit for your records.

Your Retirement Guide 2024 29

Service Retirement Application checklist

This checklist will help you avoid common errors that result in your paper application being returned for corrections.

Section 1: Member information

Did you complete all of the member information?

Section 2: Retirement information Did you provide a retirement date?

Did you provide the date of your last day of work, vacation or compensated approved leave?

Is your retirement date at least one day after your last day of work, vacation or compensated approved leave?

If you’re applying for the Reduced Benefit Election, did you complete and attach the Reduced Benefit Election form?

If you plan to retire concurrently from another California public retirement system, did you complete the required information?

Section 3: Your Defined Benefit Program election 3.1 Defined Benefit Program election
Did you elect the Member-Only Benefit or the Modified Benefit?

If you elected the Modified Benefit and previously submitted a Preretirement Election of an Option form: Did you state the name of your elected beneficiary and the percentage amount?
If you elected the Modified Benefit and did not previously submit a Preretirement Election of an Option form:

Did you provide all the required option and beneficiary information?

Did you provide a birthdate verification document for your beneficiary?

Section 4: Your Defined Benefit Supplement Program election 4.1 Defined Benefit Supplement Program election
Did you elect one choice for your Defined Benefit Supplement funds: either a lump-sum payment, annuity payment, or combination lump sum and annuity?

If you elected the annuity payment, did you indicate either the period-certain annuity of three to 10 years or the lifetime annuity?

If you elected the combination lump sum and annuity, did you indicate the lump-sum amount and choose either a period-certain annuity of three to 10 years or a lifetime annuity?

4.2 Defined Benefit Supplement Program payment instructions

If you elected a lump-sum payment or period-certain annuity of three to nine years, did you elect either direct payment or rollover?

If you elected a rollover to Pension2:

Did you indicate the dollar amount or percentage to transfer?

You do not need to provide financial institution information or get a financial institution signature.

30     Your Retirement Guide 2024

Service Retirement Application checklist (continued)

If you elected a rollover to another qualified plan with a financial institution, did you:

Select one of the three plan types?

Provide the account number?

Complete the financial institution information?

Obtain the financial institution representative’s signature or a Letter of Acceptance?

Section 5: Defined Benefit Program tax withholding preferences Did you elect your California state and federal income tax withholding preferences?

Section 6: Defined Benefit Supplement Program tax withholding preferences

If you elected a lifetime annuity or the Period-Certain Annuity of 10 years, did you indicate your California state and federal income tax withholding preferences?

Section 7: Defined Benefit Supplement tax withholding for lump sum or period-certain annuities of three to nine years.

If you elected a lump-sum payment or a period-certain annuity of three to nine years, did you indicate if you want California state tax withheld?

Section 8: Required signatures

Did you indicate your marital status by checking all boxes that apply to you?

Did you sign and date the form with your signature date?

Did you sign within six months of your requested retirement date if requesting a retirement date in the future?

Did your spouse or registered domestic partner sign and date the form with their signature date?

If not, did you check the corresponding box and attach the Justification for Non-Signature of Spouse or Registered Domestic Partner form?

Before submitting your application

Are your name and Client ID or Social Security number on all pages?

Did you complete all pages of the application?

Did you initial and date any corrections?

Did your spouse or registered domestic partner initial and date any corrections?

Did you make a copy of your application and supporting documents for your records?

Submit your application online using myCalSTRS for faster processing.

If you submit a paper application between April 1 and July 31, processing times may be longer than during nonpeak months.

Your Retirement Guide 2024 31

When
CalSTRS’ role in your retirement process

After you submit your Service Retirement Application, what you can expect from us and when is detailed below.

Once CalSTRS receives your Service Retirement Application, we...

Send you a letter acknowledging receipt of your application.
	Within two weeks of processing your application or instantly via email if you apply online.

Review your packet for all necessary information.
	Within 30 days of receiving your application packet.
	
May request additional information from you or your former employer, including any court-ordered community property documents. (Ask your employer to submit your completed Express Benefit Report form to decrease the need for us to request additional information from you or your employer.)

Any time during the application process.
	
Send an award letter that includes:
• The amount of your monthly benefit.
• How your monthly benefit was calculated.
• The total amount of your contributions and interest as of your retirement effective date.
	
Within two to three weeks of receiving your complete application, or three to four weeks before your retirement date if the complete application was received more than six weeks prior to your retirement date.
	
Send your first benefit payment based on the information on file at the time of retirement. If your retirement date is not the first of the month, your first benefit payment will be prorated.
	Within 45 days of your retirement date or the date we process your retirement application and all applicable forms, whichever is later.

Send your requested Defined Benefit Supplement payment based on the information on file at the time of your retirement.
	Within 45 days of your retirement date or the date we process your retirement application and all applicable forms, whichever is later.
	
Send adjustment letters.
• Your benefit payment may be adjusted as we receive additional information from your employer, including any unused sick leave or retirement incentive.
• Unused sick leave may take several months to process if we do not receive the Express Benefit Report around the same time as your application.
• Reconciliation of underpayments or overpayments will be made during this period.
• Save your most recent adjustment letter to determine your tax liability.

Any time after your retirement date.

Provide an annual benefit adjustment equal to 2% of your initial benefit. These adjustments are not compounded or based
on inflation.
	Effective September 1 of each year, beginning after the first anniversary of your retirement. The automatic adjustment is reflected in your October 1 payment.

When you complete and submit your application online using myCalSTRS, your timeline typically will be much faster.

32     Your Retirement Guide 2024

CalSTRS Pension2
Roll over your Defined Benefit Supplement funds to Pension2 when you retire

Pension2, CalSTRS’ voluntary supplemental savings plan, offers 403(b), 457(b), Roth 403(b) and Roth 457(b) plans.

With Pension2, you’ll belong to a plan with:

•	Low and transparent costs—no commissions, no load fees and no surrender charges.

•	Flexible investment choices that match your level of investment ability.

•	Experienced retirement specialists to help you define and pursue your goals in retirement.

®
It’s your future. Choose Pension2 .

Pension2.com

Find the Pension2 e-book and videos online, or call us toll-free at 888-394-2060 for information.

CalSTRS Pension2 does not guarantee any rate of return on investments. Investing involves risk, including risk of loss of principal.

Have other retirement savings accounts? Bring them all together.

By rolling over money currently held in other qualified retirement plans to Pension2, you’ll be able to manage your retirement savings in one place, plus you may be able to save on fees.

To get a no-charge, no-cost comparison, call 888-394-2060.

	
	Compare 403(b) products side by side

At 403bCompare.com, you’ll find an easy way to compare costs, services and performance of your employer’s 403(b) products to help you find the best plan for your retirement income goals.

Scan this QR code to learn more.

	

Your Retirement Guide 2024 33

Glossary

Age factor

The percentage of your final compensation that you will receive as a retirement benefit for every year of service credit. The age factor is based on your age on the last day of the month in which your retirement is effective.

For CalSTRS 2% at 60 members, the age factor at age 60 is 2%. The age factor decreases the earlier you retire, decreasing to 1.1% at age 50 and gradually increasing the closer to age 60 you retire. If you retire after age 60, the age factor gradually increases to
a maximum of 2.4% at age 63. For example, if you retire at age 60 and have 20 years of service, you’ll receive 2% (your age factor at age 60) of your final compensation multiplied by the 20 years of service credit, or 40% of your final compensation (2% × 20).

For CalSTRS 2% at 62 members, the age factor at age 62 is 2%. The age factor decreases the earlier you retire, decreasing to 1.16% at age 55 and gradually increasing the closer to age 62 you retire. If you retire after age 62, the age factor gradually increases to a maximum of 2.4% at age 65.

Annual benefit adjustment

An automatic annual increase to your monthly benefit. The increase is effective September 1 of each year after the first anniversary of your retirement date. Annual benefit adjustments are calculated at 2% of your initial benefit. The increase is not compounded or linked to inflation.

Annualized pay rate

The salary and wages a person could earn during a school term for an assignment if creditable service were performed for that assignment on a full-time basis.

Assessment

A reduction applied to your benefit if you change or cancel your preretirement election of an option or if your beneficiary dies prior to your retirement date. The amount is the actuarial equivalent
of the coverage you received as a result of the preretirement election. The reduction does not apply in all circumstances.

34     Your Retirement Guide 2024

Career factor

For members under the CalSTRS 2% at 60 benefit structure, if you retire with at least 30 years of earned service credit, 0.20% is added to your age factor up
to a maximum age factor of 2.4%. For example, at age 60 and 3 months, the normal age factor is 2.033%. With the career factor added, the age factor would be 2.233%. The career factor does not apply if you die before retirement without a Preretirement Election of an Option form on file at CalSTRS. Members under the CalSTRS 2% at 62 benefit structure are not eligible for the career factor.

Classified position

Any position not requiring certification qualifications. Classified service includes every position not defined by the California Education Code as requiring a certificate or credential and not specifically exempted. Exempted service can be found in California Education Code sections 45103 and 45256.

Client ID

A CalSTRS randomly generated number used to identify members. We use your Client ID instead of your Social Security number to secure your identity. You can find your Client ID on your Retirement Progress Report.

Compensation earnable

The weighted average of the amount you would have been paid if you had worked in each of your
assignments on a full-time basis, plus any remuneration in addition to salary, not including compensation for which contributions are credited to your Defined Benefit Supplement account.

Concurrent service retirement

Retiring for service at the same time from CalSTRS and one of the following California public retirement systems: California Public Employees’ Retirement System, San Francisco Employees’ Retirement System, University of California Retirement Plan, Legislators’
Retirement System, or those systems established under the County Employees Retirement Law of 1937. Or you may retire for service on different dates as long as you did not perform service creditable to either system between those dates.

Creditable service

Specific employment activities performed for a school district, community college district, county office of education or eligible charter school, including teaching, mentoring, vocational or guidance counseling, services related to school curriculum, and a variety of administrative duties. Includes school health professionals, school librarians, superintendents and others.

Credited service

Service credit for which required contributions have been paid. See service credit definition on page 36.

Defined Benefit Program

A benefit program within the California State Teachers’ Retirement System that provides a lifetime retirement benefit (based on a formula using service credit, an age factor and final compensation) and survivor and disability benefits for California’s public school educators who are members of the program.

Defined Benefit Supplement Program

A cash balance plan for Defined Benefit Program members that provides an additional retirement benefit. Contributions on earnings for service performed in excess of one year are credited to your Defined Benefit Supplement account. For every dollar you and your employer contribute to this program, your account is credited accordingly. Your account earns guaranteed interest and any
additional earnings credits declared by the Teachers’ Retirement Board.

For CalSTRS 2% at 60 members, contributions on earnings for limited-term payments are also credited to your Defined Benefit Supplement account.

Final compensation

The highest average annual compensation earnable during a specified period of CalSTRS-covered
paid employment.

For members under the CalSTRS 2% at 60 benefit structure, the period is 12 consecutive months if you have at least 25 years of service credit. If you have fewer than 25 years of service credit, and you’re not an eligible classroom teacher who has a collectively bargained final compensation period of

12 consecutive months, the period is 36 consecutive months. For members under the CalSTRS 2% at
62 benefit structure, the period is 36 consecutive months regardless of your years of service.

Hybrid retirement system

As a CalSTRS member, you participate in a hybrid retirement system that includes traditional defined benefit (Defined Benefit Program), cash balance (Defined Benefit Supplement Program) and voluntary defined contribution (CalSTRS Pension2) plans. You also have survivor and disability benefits.

Longevity bonus

A benefit enhancement for members under the CalSTRS 2% at 60 benefit structure that increases your monthly benefit if you had at least 30 years of qualified service credit on or before December 31, 2010. The bonus will be reduced by an option factor if you choose an option. Members under the CalSTRS 2% at 62 benefit structure are not eligible for the longevity bonus.

Member

You’re a member if you have been credited with service in the Defined Benefit Program and have not received a refund for that service.

Member-Only Benefit

The highest monthly benefit you can receive for your lifetime when you retire for service or disability.

Modified Benefit

A reduced benefit that allows you to provide an ongoing lifetime benefit to one or more option beneficiaries after your death. The reduction to your Member-Only Benefit depends on which option you choose, your age and the age of your option beneficiary when the election is made.

Normal retirement age

For CalSTRS 2% at 60 members, normal retirement age is 60. For CalSTRS 2% at 62 members, normal retirement age is 62.

One-time death benefit

A one-time benefit paid to your designated recipients (may be a person, trust, charity, corporation, estate or other entity) after you die.

Your Retirement Guide 2024 35

Option

A Defined Benefit Program feature that allows you to distribute your retirement benefit over your lifetime and the lifetimes of other people after your death.

Postretirement earnings limits

There are two postretirement earnings limits that apply to CalSTRS members: the annual earnings limit and the separation-from-service requirement.

Annual postretirement earnings limit

If you return to work and perform retired member activities after the 180-calendar day separation-from-service requirement in the California public school system as an employee, independent contractor or employee of a third party, you can earn up to the annual postretirement earnings limit without affecting your benefit. Your CalSTRS benefit will be reduced dollar for dollar by the amount of
creditable earnings in excess of the earnings limit up to your annual retirement benefit, minus reductions due to the separation-from-service requirement.

The Teachers’ Retirement Board adjusts the earnings limit annually. For the 2023–24 school year, the limit is $50,655. Check CalSTRS.com/limits for the 2024‒25 earnings limit.

If you perform retired member activities during the first 180 calendar days after retirement when you’re subject to the separation-from-service requirement, any pay you earn will also count against the annual postretirement earnings limit for the appropriate fiscal year.

Separation-from-service requirement

If you return to work after service retirement and perform retired member activities during the first 180 calendar days after your most recent retirement date in the California public school system as an employee, independent contractor or employee of a third party, your retirement benefit will be reduced dollar for dollar by the amount you earn up to your benefit payable during the 180 calendar days.

In addition, any amount you earn performing retired member activities during the first 180 calendar days of retirement will also count against the annual postretirement earnings limit for the appropriate fiscal year.

There are no exemptions if you’re under normal retirement age or if you received a retirement incentive. Following the 180-calendar day period, you may return to work under the annual postretirement earnings limit.

Reduced Benefit Election

A retirement alternative for Defined Benefit Program members if you’re under the CalSTRS 2% at 60 benefit structure. You will receive one-half the monthly benefit amount calculated as if you were age 60. The reduced benefit will continue for the same number of months after age 60 that you received benefits before age 60. After that, you will receive your full retirement benefit. To be eligible, you must be at least age 55, but under age 60, and have at least five years of service credit. You’re not eligible if you previously received a CalSTRS service retirement or disability benefit or if you’re applying for service retirement while your disability application is being evaluated.

Retired member activities

Specific employment activities, such as teaching, guidance counseling, mentoring, services related to school curriculum and certain administrative duties, performed in retirement in the California public school system as an employee of an employer, as an independent contractor or as an employee of a third party except under limited circumstances.

School term

The period of time an employer requires creditable service to be performed by a member employed on a full-time basis.

School year

Refers exclusively to the fiscal year: July 1 of one calendar year to June 30 of the following calendar year.

Service credit

Accumulated period in years, including partial years, for which you earned creditable compensation
and made contributions under the Defined Benefit Program. Your service credit is one of the factors used to determine your eligibility for benefits payable under the Defined Benefit Program. Service credit cannot exceed 1.000 in any given school year.

36     Your Retirement Guide 2024

Trust CalSTRS, not impersonators

As a fiduciary, CalSTRS is bound by law to protect the financial interests of all CalSTRS members and beneficiaries. Some companies promoting free retirement planning advice may not be held to the same standards. As you plan for retirement, be sure to speak with an authorized CalSTRS representative and not an impersonator.

A CalSTRS representative will:

• Have an email address ending in @CalSTRS.com.

• Have access to your CalSTRS or Pension2 account information.

• Be able to provide a CalSTRS ID badge or business card.

• Not sell insurance products.

We will never meet with you to discuss your personal CalSTRS accounts outside of a designated CalSTRS office. You can schedule an appointment with a CalSTRS benefits specialist by calling 800-228-5453.

Some CalSTRS Pension2 representatives may be affiliated with Voya Financial. Their names and photos are listed at CalSTRS.com/trust-CalSTRS. Email us at RepCheck@CalSTRS.com if you meet with someone you think may not be an authorized representative.

CalSTRS resources

WEB CalSTRS.com

myCalSTRS.com

403bCompare.com

Pension2.com

STAY CONNECTED

CALL

800-228-5453
Calls from within the U.S.

916-414-1099
Calls from outside the U.S.

888-394-2060 CalSTRS Pension2® Personal wealth plan

844-896-9120 (toll-free) CalSTRS Compliance and Ethics Hotline
CalSTRShotline.ethicspoint.com

WRITE

Postal mail P.O. Box 15275
Sacramento, CA 95851-0275

Overnight delivery to CalSTRS Headquarters 100 Waterfront Place West Sacramento, CA 95605

VISIT

Find your nearest CalSTRS office at
CalSTRS.com/local-offices.

Call ahead to verify the hours and services of your local office.

FAX

916-414-5040

California State Teachers’ Retirement System

COM 0377 (rev 12/23)

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