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- What is retirement after reinstatement?
Some members choose to return to CalSTRS-covered employment after having been retired. Returning to active membership following a service retirement is called "reinstatement." The subsequent retirement, called a multiple retirement, is calculated differently from the way the initial benefit was calculated. The calculation depends on the number of years of service credit the member earned after reinstating to active membership.
If you reinstate, the law requires that you wait at least one calendar year following reinstatement before you can start receiving a retirement benefit again.
- How will my new service retirement be calculated?
The way that your new retirement benefit will be calculated depends on the number of years of service credit you earned after your reinstatement.
Retiring with fewer than two years of service credit after reinstatement
If you have fewer than two years additional service, the new benefit will be calculated by adding the old benefit amount including annual benefit adjustment and the current amount using the current factors: the service credit you earned since your reinstatement multiplied by your current final compensation multiplied by the age factor for the age you are at the time of your later retirement. Whatever new enhancements you qualify for will be used in the calculation of the new amount. If you qualified for a longevity bonus at the time of your first retirement, the longevity bonus will be increased by $100 for each full year of service credit you added.
Example:
Suppose you originally retired at age 60 with 29 years of service credit (including unused sick leave) and with $3,000 final compensation. Your prior benefit would have been $1,740. Two years later, you reinstated and you worked 1.5 years after reinstatement at $5,000 per month.
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29.000 prior service credit years multiplied by 2 percent prior age factor multiplied by $3,000 prior final compensation |
Prior Unmodified Allowance |
$1,740.00 |
2% Annual Benefit
Adjustment |
+ $69.60 |
Subtotal |
$1,809.60 |
Plus current 1.50 service credit multiplied by 2.40% age factor multiplied by $5,000 final compensation |
Current Unmodified Allowance |
+$180.00 |
Total Unmodified Allowance (prior + current) |
$1,989.60 |
Note that you qualified for the one-year final compensation and the career factor enhancements, and those were used in the calculation of the current benefit amount.
Retiring with two or more years of service credit after reinstatement
If you have earned two or more years of service credit since reinstatement, your entire benefit is recalculated. The age factor from your prior benefit is recalculated to the age factor based on your current age minus the time you spent in retirement, and new calculation uses your current final compensation for all the years of service credit. The amount for the current service, calculated using current factors is added to the recalculated former benefit amount.
Whatever new enhancements you qualify for will be used in the calculation of the new amount. If you qualified for a longevity bonus at the time of your first retirement, the longevity bonus will be increased by $100 for each full year of service credit you added.
Example:
Suppose you originally retired at age 60 with 29 years of service credit (including unused sick leave) and with $3,000 final compensation. Your prior benefit would have been $1,740. Two years later, you reinstated and you worked 2 years after reinstatement at $5,000 per month.
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29.000 prior service credit multiplied by *2.40 percent recalculated age factor multiplied by $5,000 current final compensation |
Prior Unmodified Allowance |
$3,480.00 |
Plus current 1.50 service credit multiplied by 2.40% age factor multiplied by $5,000 final compensation |
Current Unmodified Allowance |
+$240.00 |
Subtotal Unmodified Allowance (prior + current) |
$3,720.00 |
Total Benefit |
$4,020.00 |
- How do I get an estimate of my retirement benefits?
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