Assembly Bill 1509 (Chapter 74, Statutes of
2000) established the Defined Benefit Supplement Program.
This is an additional benefit for active CalSTRS Defined Benefit
Program members. It is designed to provide you with a lump-sum
cash or monthly annuity benefit in addition to your benefits
from the DB program at no extra cost to you. AB 1509 requires
that 1/4 of your 8 percent CalSTRS contribution be allocated
to your new account. At retirement, disability, death or one
year following termination of CalSTRS-covered employment,
the funds in your account will be available to you or your
beneficiary, whichever is applicable.
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You have been contributing 8 percent of creditable compensation
earned to the CalSTRS DB Program. AB 1509 redirects 1/4 of
members' future 8 percent CalSTRS contribution to their new
DBS Program account.
For example, if your monthly compensation for CalSTRS-covered
service is $3,000, you contribute $240 per month to CalSTRS;
$60 will be allocated to your DBS Program account and $180
will be allocated to your DB Program account.
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Your DBS account was established January 1, 2001. Contributions
under AB 1509 to your DBS Program account will terminate January
1, 2011, or upon termination of CalSTRS-covered employment,
whichever occurs first.
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Unless new legislation passes, beginning January 1, 2011,
1/4 of your 8 percent contributions will no longer be diverted
to your DBS Program account and all of your 8 percent contributions
again will be credited to your DB Program account.
However, AB 2700 was also enacted and reforms the definition
of creditable compensation to include money paid for overtime,
overload, summer school, intersession, stipends paid to department
chairs when release time is not granted by the employer and
other specified service. It also requires that member and
employer contributions on compensation earned for creditable
service in excess of one year of service in a school year,
probably beginning July 1, 2002, be credited to the DBS Program.
(This provision has no sunset date.)
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Your money earns interest at a guaranteed rate that is set
annually by the Teachers' Retirement Board.
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No. Your regular CalSTRS monthly contribution amount will
not change or be reduced as a result of the new DBS Program
and your checkstub will look the same.
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Check the Defined Benefit Supplement Program Web page on
the CalSTRS Web site at www.calstrs.com/Members/Defined Benefit
Supplement/dbsprogsummary.aspx, or call the CalSTRS Public
Service Office at (800) 228-5453.
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No. As an active member, you are automatically enrolled in
the DBS program.
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No.
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No. You must withdraw all of the funds from your DBS Program
account when you terminate CalSTRS-covered employment or receive
a retirement or disability lump-sum benefit from your DB Program
account.
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No.
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No.
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No. Your DBS beneficiary will be the same as your DB Program
designated beneficiary.
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No.
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Your DB Program and DBS funds are separate and distinct accounts.
However, both are subject to California community property
laws and distribution by court order.
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Yes, when the funds in your DBS account equal or exceed $3,500.
More information on annuity estimates is available here.
You can find your DBS account balance on your benefit estimate letters and statements of account,
which are available on myCalSTRS.
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Yes
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No. Your monthly DB retirement allowance is based on a formula
that includes your final compensation, years of service credit
and a factor based on your age at retirement. It is not based
on the funds in either your DB Program or DBS account.
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At retirement you will elect how to receive your DBS funds.
If you retire with a balance in your DBS account of less than
$3,500, you must take a lump-sum distribution. If the balance
in your DBS account is $3,500 or more, you must choose one
of the following:
- a lump-sum distribution
- an annuity
- combination of lump-sum distribution and annuity
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Yes.
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It is anticipated that the earliest that CalSTRS will issue
payment will be on or after July 1, 2001. Your DBS account
will continue to be credited with interest until payment is
made.
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No. Your monthly DB Program disability allowance is based
on a formula that is not affected by the funds in either your
DB Program or DBS accounts.
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Yes.
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Provided that the amount in your DBS account is at least
$3,500 you can elect to receive either a lump-sum distribution
or a monthly annuity. If the amount in your DBS account is
less than $3,500, you must take a lump-sum distribution.
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You have the following five annuities to choose from:
- single life annuity without cash refund feature
- single life annuity with cash refund feature
- 100 percent joint and survivor annuity
- 50 percent joint and survivor annuity
- period certain annuity
Additional information about these choices will be available
in the future on the CalSTRS Web site and publications.
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A lifetime monthly payment with no cash refund payable upon
your death. Single Life Annuity choices are only available
to Defined Benefit members who retire without selecting an
option beneficiary.
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A lifetime monthly payment. Any balance remaining upon your
death will be paid to your one-time death benefit recipient(s).
Single Life Annuity choices are only available to Defined
Benefit members who retire without selecting an option beneficiary.
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This choice provides a monthly annuity for your lifetime
and the lifetime of your annuity beneficiary. One hundred
percent of your monthly annuity would be paid to your annuity
beneficiary upon your death. Joint and Survivor Annuity choices
are available to members who elect an option before or at
retirement. The beneficiary of a Joint and Survivor Annuity
must be the same person you named as your Defined Benefit
option beneficiary.
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This choice provides a monthly annuity for your lifetime
and the lifetime of your annuity beneficiary. Fifty percent
of your monthly annuity would be paid to your annuity beneficiary
upon your death. Joint and Survivor Annuity choices are available
to members who elect an option before or at retirement. The
beneficiary of a Joint and Survivor Annuity must be the same
person you named as your Defined Benefit option beneficiary.
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A monthly payment made for any number of years from three
to 10. The amount you receive is based on the number of years
over which the annuity is paid. If you die before the annuity
period ends, the remaining payments are paid to your one-time
death benefit recipient(s).
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Yes, when your DBS account balance is equal to or exceeds
$3,500. More information will be available in the future on
the CalSTRS Web site and publications.
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At the time you file a DB Program retirement or disability
benefit application, you will also make your DBS distribution
choice. You must either choose a lump-sum distribution or
select an annuity or a combination of both.Return to top of
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If you leave CalSTRS-covered employment and:
- Withdraw the funds from your DB Program account,
you are required to take the DBS termination benefit which will close out your DBS account, or
- Do not withdraw funds from your DB Program account, you may leave your DBS Program
funds on account. Your funds will continue to accrue interest as long as they remain on deposit.
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If after termination of employment you have not performed creditable service for six months
and you have received a refund of your Defined Benefit account, CalSTRS is required to refund
your Defined Benefit Supplement account.
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No. Although you can redeposit previously refunded funds into your DB account,
funds from your DBS account cannot be redeposited. If you return to CalSTRS-covered employment
prior to January 1, 2011, 1/4 of the 8 percent CalSTRS contributions from your salary will be
allocated to your DBS account.
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No. If you return to membership and DBS contributions are received within the six-month period,
your application for a DBS termination benefit will be canceled.
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Yes.
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Provided that the amount in your DBS account is at least
$3,500, named beneficiary(ies) can elect to receive either
a lump-sum distribution or a monthly annuity. If the amount
in your DBS account is less than $3,500, named beneficiary(ies)
must take a lump-sum distribution.
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If you elected a lump-sum distribution from your DBS account
at the time of your retirement or disability, no further DBS
benefit is payable. If you elected a monthly annuity, any
further distribution of funds is based on the type of annuity
selected.
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No. Your survivors' monthly family allowance or surviving
spouse allowance is based on a formula that is not affected
by the funds in either your DB Program or DBS accounts.
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There is no cash refund payable upon your death.
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Any balance remaining upon your death will be paid to your
one-time death benefit recipient(s).
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One hundred percent of your monthly annuity would be paid
to your annuity beneficiary upon your death.
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Fifty percent of your monthly annuity would be paid to your
annuity beneficiary upon your death.
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If you die before the annuity period ends, the remaining
payments are paid to your one-time death benefit recipient(s).
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Yes, as long as your employer does not tax your retirement
contributions when your salary is paid.
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Yes.
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Yes. These funds may be subject to state and federal taxes
unless you roll the account balance over to another qualified
plan. You may wish to consult your tax advisor.
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