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SB 334 (Chapter 800, Statutes of 2001) provides enhanced benefits for
members who, having retired from service, and then end their retirement benefits
by becoming an active member again. Returning to active membership following
a service retirement is called "reinstatement." To be eligible
to receive enhanced benefits, you must perform at least two years of credited
service after your most recent reinstatement and re-retire on or after
October 13, 2001.
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Under the provisions of SB 334, a previously retired member who has reinstated,
performed an additional two or more years of credited service* after the
most recent reinstatement and accumulated the total service credit shown
below, may qualify for the following enhanced benefits when the member
retires from service:
- 25 or more years = 1-year final compensation
- 30 years = 1-year final compensation, career factor (additional 0.2
percent added to age factor) and $200 longevity bonus
- 31 years = 1-year final compensation, career factor and $300 longevity
bonus
- 32 years = 1-year final compensation, career factor and $400 longevity
bonus
: Credited service
excludes unused sick leave service credit, Golden Handshake or nonqualified
service credit.
Members who do not qualify for the benefit enhancements may be eligible
for an increased age factor, career bonus and/or higher final compensation
upon retirement.
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To be eligible for the benefits provided by SB 334, currently retired members must:
- Reinstate to active status by requesting to terminate their retirement allowance;
- Perform two or more years of credited service following the most recent reinstatement; and
- Re-retire on or after October 13, 2001.
If you have already reinstated and are currently an active member, you must:
- Perform two or more years of credited service following your most recent reinstatement; and
- Re-retire on or after October 13, 2001.
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You can submit a request for an estimate either by writing to CalSTRS
or by calling CalSTRS at 1 (800) 228-5453.
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Yes. If you elected an option, upon your reinstatement your selection
will become a pre-retirement election of an option. This means that if
you die while an active member, your wishes for an ongoing allowance for
your survivor will be carried out. However, you may choose to cancel the option
following reinstatement or elect a different option after one calendar
year has elapsed following your reinstatement and before your subsequent
retirement. Remember, if you choose to change or cancel an option, normal
assessment rules will apply. For more information on assessments, please
refer to Teletalk Message #371.
Also, if you retired with an unmodified allowance, you may elect a pre-retirement
election of an option after one calendar year has elapsed following reinstatement
and before your subsequent date of retirement. You may also choose to
wait and elect an option at retirement.
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Once you reinstate to active status, CalSTRS will not continue to pay
your Medicare Part A premium as this benefit is only available for retired
members. Once you re-retire, CalSTRS will resume payment
of the Medicare Part A premium as long as you meet the eligibility criteria
based on your prior retirement history.
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The law requires that you wait at least one calendar year following
reinstatement before you can start receiving a retirement benefit again.
It is important to note that benefit enhancements will not be included
in your new retirement calculation if you did not earn the minimum two
years of credited service required for benefits under SB 334.
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The following illustrations will help you understand how your
retirement allowance was calculated prior to SB 334, and how it will be
calculated if you reinstate and work the additional two years as required
under SB 334.
This illustration shows what your retirement allowance would
be at the age of 60, with the 2 percent age factor.
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29.000 prior service credit multiplied by 2 percent
prior age factor multiplied by $3,000 prior final compensation
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Prior Unmodified Allowance
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$1,740.00
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2% COLA
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+ $69.60
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Subtotal
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$1,809.60
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Plus current 2.000 service credit multiplied by
2.40% age factor multiplied by $5,000 final compensation
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Current Unmodified Allowance
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+$240.00
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Total Unmodified Allowance (prior + current)
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$2,049.60
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This illustration shows what your retirement would be at the age of 63, with the 2.4 percent age factor,
if you reinstate and attain an additional two years of credited service under SB 334:
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29.000 prior service credit multiplied by
recalculated age factor multiplied by $5,000 current final compensation
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Prior Unmodified Allowance
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$3,480.00
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Plus current 2.000 service credit multiplied by
2.40% current age factor multiplied by $5,000 current final compensation
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Current Unmodified Allowance
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+$240.00
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Subtotal Unmodified Allowance (prior + current)
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$3,720.00
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Plus Longevity Bonus for 31.000 years of Service Credit
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+$300.00
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Total Benefit Under SB 334
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$4,020.00
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that under SB 334, the
age factor used in your prior retirement will be recalculated based on your
current age minus the amount of time spent in retirement.
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In order to reinstate to active member status, you can submit a written
request to CalSTRS or download and complete a CalSTRS Retirement Application
Change Request form. If you choose to submit a written request, be sure
to include your anticipated date of reinstatement.
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