|
Yes, you can make monthly installments on your service credit
purchase or redeposit. 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 our Web finance calculators.
Return to top
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,
set each fiscal year by the Teachers' Retirement Board is currently
4.5 percent for fiscal year 2004-2005.
Return to top
You can finance your purchase by monthly cash installments or,
if you employer offers it, by monthly payroll deduction. You
can also pay for your purchase by rollover of acceptable funds.
Return to top
The billing statement you receive from CalSTRS will show your
payments based on a five-year schedule, unless you request otherwise
on your billing statement. You can, however, elect to make payments
over a period of as long as 10 years.
Return to top
You must request a billing from CalSTRS by using the form found
in the Purchase
Additional Service Credit brochure or by calling (800) 228-5453
and selecting option 3. After you submit your request, you will
receive a billing statement from CalSTRS that will list the
different options including the monthly installment cost.
If you decide to make monthly cash installments, send your
initial payment to CalSTRS within 35 days of the date on the
original billing statement to avoid additional interest. Please
include your Social Security number on your check.
Payments may be submitted in amounts larger than the regular
monthly installment. Payments are due the 20th of the month,
and you will receive a billing invoice each month. If payments
become 120 days delinquent, CalSTRS may cancel your election
to purchase service or redeposit and refund all payments received.
Return to top
Yes, if your employer offers this option.
Return to top
You should check with your employer to see if they offer payroll
deduction payments.
You must request a billing from CalSTRS by using the form
found in the Purchase
Additional Service Credit brochure or by calling (800)
228-5453 and selecting option 3. After you submit your request,
you will receive a billing statement from CalSTRS that will
list the different options including the payroll deduction
cost. If you decide to pay by payroll deduction, a copy of
the billing statement should be given to your payroll office
within 35 days of the date on the original billing statement.
Deductions will be made according to the payroll schedule
on the original billing statement.
Return to top
You should check with your employer to see what type of payroll
deduction they offer. If your employer offers pretax payroll
deductions and you decide on this payment method, you must sign
a payroll authorization form. This authorization is an irrevocable
and binding agreement that requires the employer to continue
deductions until the payments are made in full. Therefore, you
cannot make extra payments either by cash or rollover after
you have started a tax-deferred payroll deduction plan.
Return to top
Since regular interest is charged monthly, you would be charged
interest for 12 months. This means that you would accrue interest
on the unpaid balance during the month or months you do not
receive a paycheck.
Return to top
No, you cannot continue installment payments after you retire
or start receiving a disability retirement allowance. If you
are making payments and will retire, you must make your final
payment no later than the end of the month of your retirement.
The final amount can be paid as a lump sum. If you have not
finished your payments by the time you retire, you can receive
prorated service credit for the total amount received at retirement.
Return to top
Yes, but only if you are making cash payments or post-tax payroll
deductions. If you are paying through a pretax payroll deduction
plan, you cannot make extra payments either by cash or rollover.
Include your Social Security number when sending payments to
CalSTRS.
Return to top
No, once you have started your purchase your interest rate is
locked in and you cannot refinance the purchase.
Return to top
Yes. If you want to change the payment terms of your purchase,
make your requests to:
Please include your Social Security number with your request.
Return to top
|
