• I am retired and selected an option for an ongoing monthly benefit to be paid to my option beneficiary after I die. May I change my option beneficiary?
• If I change my option and/or option beneficiary, will the amount of my monthly allowance change? And how long will it be until my change is reflected?
• I am retired, my option beneficiary has died and I would like to select a new beneficiary. How do I name a new option beneficiary?
• My first option beneficiary died. What kind of change might I see in my retirement allowance when changing my option and/or option beneficiary?
• What if I receive the estimate of how my allowance will be modified if I select a new option beneficiary and I decide that I do not want to go through with the change?
• I am retired and am receiving a monthly allowance under option 6 (or 7) and my option beneficiary has died. May I select a new option?
• If I change options and/or option beneficiaries and receive a reduced monthly allowance as a result, will my quarterly supplemental payments also change?
• What is the difference between a death beneficiary and an option beneficiary?

I am retired and selected an option for an ongoing monthly benefit to be paid to my option beneficiary after I die. May I change my option beneficiary?

Once you retire, you can only change your option beneficiary under the following four circumstances:

• If your option beneficiary dies;
• If your option beneficiary is your spouse and you divorce;
• If your option beneficiary is someone other than your spouse and you would now like to name your spouse;
• If you get married after you retire and previously had not chosen an option and would like to name your new spouse.

To change your option beneficiary, you will need to complete a Change of Option Beneficiary After Retirement form and submit it to CalSTRS. For more information about changing your option beneficiary, read topics 369, 370 and 378 or listen to them by calling 800-228-5453 and choosing option 2.

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If I change my option and/or option beneficiary, will the amount of my monthly allowance change? And how long will it be until my change is reflected?

Yes, your monthly allowance will be modified to reflect your option selection and your choice of option beneficiary. The option beneficiary change will take effect six months after your request is received by CalSTRS. At the end of the six-month waiting period, your monthly allowance will be reduced to reflect your age and the age of your new option beneficiary.

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I am retired, my option beneficiary has died and I would like to select a new beneficiary. How do I name a new option beneficiary?

Under a new law, you may change your option beneficiary regardless of which option you originally selected. To change your option beneficiary, you must fill out the Change of Option Beneficiary After Retirement Due To Death form. If you are changing your option beneficiary to someone other than your current spouse, you will need to have your spouse sign your Change of Option Beneficiary form. If you are unable to obtain your spouse’s signature, then you will need to fill out a Justification For Non-Signature of Spouse form. These forms can be obtained by downloading them from the CalSTRS Web site or by calling the CalSTRS Call Center at 800-228-5453. Once CalSTRS receives the completed form(s), an estimate of your new monthly retirement allowance will be sent to you.

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My first option beneficiary died. What kind of change might I see in my retirement allowance when changing my option and/or option beneficiary?

All allowances are affected differently based on individual criteria. Here are two examples:

Example 1:
Peter retired in 1992 and elected option 6 to cover his spouse, Jill. Unfortunately, Jill died before Peter and as a result, his allowance increased to the unmodified level. Peter remarried and now wishes to name his new spouse, Linda, as his option 6 beneficiary. At the time the new beneficiary election takes effect, Peter will be age 67 and Linda will be age 64.

If Peter dies, Linda will continue to receive $1,938 for the rest of her lifetime. If Linda dies before Peter, his allowance will return to $2,460, per month.

Example 2:
Terry retired in 1979 and elected option 7 to cover her spouse, Robert. Unfortunately, Robert died before Terry and as a result, her allowance increased to the unmodified level. Terry remarried and now wishes to name her new spouse, Mike, as her option beneficiary. At the time the new beneficiary election takes effect, Terry will be age 75 and Mike will be age 71.

If Terry dies, Mike will continue to receive $684 for the rest of his lifetime. If Mike dies before Terry, her allowance will return to $1,600, per month.

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What if I receive the estimate of how my allowance will be modified if I select a new option beneficiary and I decide that I do not want to go through with the change?

You will need to write to CalSTRS stating you wish to cancel your application for a Change of Option Beneficiary After Retirement. Your request must be received before the effective date of the new option beneficiary election.

Write to: CalSTRS
Service Retirement Division MS60
P.O. Box 15275
Sacramento, CA 95851-0275

Please remember to always include your Social Security number and daytime phone number when writing CalSTRS.

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I am retired and am receiving a monthly allowance under option 6 (or 7) and my option beneficiary has died. May I select a new option?

No, if you are receiving a benefit under option 6 or 7, you are not allowed to change options. However, you are allowed to select a new option beneficiary if the current beneficiary has died. The option beneficiary will take effect six months after your request is received by CalSTRS. At the end of the six-month waiting period, your monthly allowance will be reduced to reflect your age and the age of your new option beneficiary.

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If I change options and/or option beneficiaries and receive a reduced monthly allowance as a result, will my quarterly supplemental payments also change?

Yes, the quarterly supplemental payment will be recalculated based on your new benefit amount. Since your allowance will decrease in order to insure a lifetime monthly allowance to your new option beneficiary, your quarterly supplemental payments will also decrease.

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What is the difference between a death beneficiary and an option beneficiary?

A death beneficiary is chosen by the member to receive a one-time lump-sum death payment upon the member’s death. The amount of the lump-sum payment varies, depending on whether you have Coverage A or B, and if the death occurs before or after retirement. For further information, read topic 502 .

An option beneficiary is chosen by the member to receive a lifetime monthly allowance upon the member’s death. The member’s retirement allowance is actuarially reduced to reflect the age of the member and the beneficiary when the option is selected; this reduction is to insure a lifetime monthly allowance to the beneficiary.

The same individual may be designated the beneficiary of both the lump-sum payment and the monthly allowance. For more information, read topic 502 .

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