Yes. However, interest will be added to your unpaid balance on a monthly basis until the purchase or redeposit is paid in full. To estimate the total cost of your purchase, use the CalSTRS online finance calculators.
The interest rate for your purchase is based on the date your service credit cost was calculated by CalSTRS and is locked in for the duration of your purchase.
The regular interest rate is set each fiscal year by the Teachers' Retirement Board.
If you elect to make monthly cash payments, sign and date your billing statement and send your initial payment to CalSTRS by the due date on the billing statement. If your payment is not postmarked by the due date, the cost of service credit may increase substantially.
Be sure to include your 10-digit CalSTRS Client Identification number on your check.
Payments for cash installments may be submitted in amounts larger than the scheduled monthly installment.
You will receive a billing invoice each month and payments are due the 20th of the month. If a payment due becomes 120 days delinquent, CalSTRS will prorate your service credit and close your account, unless you request a refund of your payments.
You can request a refund only if you are paying monthly cash installments.
However, if you are making pre-tax payroll deduction installment payments, you are locked into the irrevocable agreement and can only request a refund if you quit, retire or change employers.
Once you receive your billing statement, select one of the installment plans on page AR1481-3, complete page AR1481-4 and return the forms to CalSTRS to initiate the payroll deductions with your employer.
Yes, you can elect a different installment amount or number of installments by completing the alternative installment plan section and returning the billing statement to CalSTRS.
A bill with the custom payment plan will be mailed to you for you to complete and return to CalSTRS to initiate the payroll deductions with your employer.
You will need to verify with your employer if they offer pre-tax or post-tax payroll deductions.
If your employer offers pre-tax payroll deductions and you decide on this payment method, you must sign the Permissive Installment Payments Irrevocable Payroll Authorization included with your billing statement.
If you are in the process of making pre-tax payroll deductions, you cannot make any changes. Pre-tax payroll deduction installment plans are irrevocable and remain in effect until you quit, retire or change employers.
Yes. If you take a leave of absence while making pre-tax payroll deductions and your account becomes 120 days delinquent, CalSTRS will cancel your purchase and refund your payments to your employer. Your employer will withhold any applicable taxes and refund the remainder to you.
