The longevity bonus provides an increase in your unmodified retirement benefit
if you have accumulated at least 30 years of qualified service credit by
December 31, 2010. The following longevity bonus amounts are paid based upon
the total of credited service you have earned.
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No. You must have at least 30 years of qualified service credited to your account by
December 31, 2010, to qualify. You may continue to work and increase the amount of
the longevity bonus your are entitled to.
For example: If you have 30 years of qualified
credited service by December 31, 2010, and retire in 2013, you will have 32 years of
qualified credited service and will be entitled to a bonus of $400.
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Yes. You may redeposit previously withdrawn contributions or purchase permissive service credit
to use towards longevity bonus eligibility. Any qualified service credit you wish to use for the
longevity bonus must be paid in full by December 31, 2010.
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No. Only qualified service credit purchases count towards qualifying for the longevity bonus.
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No. Service from a "golden handshake" does not qualify toward this bonus.
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If your qualified service credit purchase will not be paid in full by December 31, 2010, to qualify
for the longevity bonus, contact CalSTRS. We will review these cases on an individual basis to determine
the impact to your retirement benefit.
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If you want to redeposit or purchase permissive service credit to qualify for the longevity bonus,
you must have your final payment postmarked or deducted by December 31, 2010. Please contact CalSTRS
before initiating an installment payment plan to ensure completion of your purchase by December 31, 2010.
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Currently, there is no way to know if the longevity bonus will be extended beyond the December 31, 2010,
expiration date. We are providing information based upon the assumption the longevity bonus will expire
to help you make an informed decision regarding your service credit purchase.
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When your ex-spouse is awarded service credit through a court order, the amount of awarded service credit
is still used to determine eligibility for CalSTRS benefit enhancements (one-year final compensation,
career factor, longevity bonus). However, unless you purchase this service credit, which is only possible
when an ex-spouse refunds their share of contributions, it is not used to calculate your benefit.
For example: If you have earned 30 years of service credit but 10 years were awarded to your ex-spouse
in a court-ordered split, your account balance shows 20 years of service credit. You will still qualify
for the longevity bonus based upon the 30 years of earned service credit as if your account had never
been segregated. Your benefit allowance, however, will be calculated on the 20 years of service credit on
account unless you redeposit the years your ex-spouse refunded.
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No. Under the current law, you will only receive up to .500 of a year of credited service depending on your
contract to count towards qualifying for the bonus. You may receive a full year of earned service credit
depending on your contract, for the entire school year, but you must have at least 30 years of qualified
service credit by December 31, 2010.
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