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- Immediate vesting--you don't need to accumulate years
of service credit to benefit
- Immediate ownership of both your contribution and your
employer's contribution
- Guaranteed compounded interest rate on contributions (5.0
percent as of July 2004--this rate is adjusted annually)
- Potential additional earnings and annuity credit
- Portability:
- between and among employers participating in the CalSTRS
Cash Balance Benefit Program
- account stays with you even if you change Cash Balance
employers
- may roll over to an IRA or other qualified plan
- ability to transfer funds from other qualified plan
- Employee contribution rate of 4 percent matched by employer
for a total of 8 percent (alternative contribution rates
may be agreed upon through the collective bargaining process)
- Alternative to Social Security, CalSTRS Defined Benefit
Program and other alternative retirement plans:
- 4 percent savings over the Defined Benefit Program
- 2.2 percent savings over Social Security
- Secure investment--CalSTRS guarantees no loss of principal
- Upon termination or retirement, both employer and employee
contributions available for rollover to other qualified
plans
- CalSTRS guarantees all benefits paid in full
- Employer formally elects to offer CalSTRS' Cash Balance
Benefit Program
- All employees hired to work less than half-time in CalSTRS-covered
employment
- All salaries, including summer school and intersession,
generally qualify
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