Since most teachers retire in June, the timing guidelines below use a June retirement date.
Retirement during other months will involve similar timing.
The CalSTRS
benefit counselor can provide you with a benefit estimate
based on the various options available and help you fill out
your retirement application.
About January 1, call or write to CalSTRS or contact your
employer or your county superintendent of schools to obtain
an application
for retirement.
Complete and mail the application forms to CalSTRS as early
as possible, but do not mail them earlier than six months
prior to your retirement date. Do not return the application
later than the last day of the month in which your retirement
is to become effective. Whether you choose an unmodified benefit
or an option, this will be your final election unless you
notify CalSTRS in writing before the effective date of retirement.
As of January 1, 2007, the unmodified benefit has been renamed the Member-Only Benefit.
Always keep your CalSTRS beneficiary designation up-to-date,
including your beneficiary(ies)' addresses, even after retirement.
You should also contact your district for procedures to continue
your health insurance, since practices vary among districts.
If you elect an option, you must submit documentation verifying
your option beneficiary’s date of birth unless your option
beneficiary is a CalSTRS member. Under some circumstances,
CalSTRS will request verification of your birthday.
CalSTRS must review the certified birth documents that were
issued by the recording agency with custody of the original
document. Acceptable documentation for birthday verification is listed
in order of preference:
- Photocopy of certified birth record (recorded at least seven years
before application for CalSTRS benefits)
- Photocopy of passport ID page.
If you have changed your name from the name shown on the
record of birth, a certified copy of the marriage certificate
or court order documenting the change is required.
If you have the necessary birth and marriage certificates required
for election of an option, enclose them with your application.
However, do not postpone filing an application if you must obtain
the required documents.
If the required document cannot be secured, forward the notice
you receive from the official record keeper showing that no
record is available. CalSTRS will help you secure other acceptable
documentation.
After you have completed your service retirement application
forms, return the original application to CalSTRS in Sacramento
by certified mail, return receipt requested. Retain the "Member
Copy" for your records.
Do not submit your application to your employer. Your employer
is not responsible for the timely submission of your retirement
application to CalSTRS.
What CalSTRS does upon receipt of your Retirement Application
The post office will return the certified receipt acknowledging
delivery of your application forms. Within two to three weeks,
CalSTRS will mail you a letter acknowledging receipt of your
application.
CalSTRS will send a letter detailing your monthly estimated
benefit prior to issuing your first benefit payment.
CalSTRS will issue your first monthly benefit payment approximately
30–45 days after the effective date of retirement or
the date your application is received (whichever is later).
Your retirement benefit may be adjusted retroactively to
your retirement date upon receipt of any additional information
(sick leave, etc.).
CalSTRS will send you an adjustment letter(s), showing the
previous payments made, the correct benefit payable and
the reconciliation of those amounts. If a retroactive amount
is due, it will be paid shortly after the adjustment letter(s)
is mailed.
The adjustment letter(s) will also show the total amount
of your contributions as a member of CalSTRS. You should save
the last letter to assist you in determining your income tax
liability.
If you want the quickest possible access to your monthly
retirement payment, you should sign up for CalSTRS Direct
Deposit service. Direct Deposit is the fastest, safest and
most convenient method of receiving your monthly payment.
- It’s the fastest because your money is deposited
immediately and automatically into your account. If you
have your check mailed to the bank or sent to your home,
you will experience some delay from the time the check is
mailed to the time you can access your money.
- It’s the safest because your money goes from one
source directly to the other via computer. You don’t
have to worry about a check being stolen, lost or delayed
in the mail.
- It’s the most convenient because your money is automatically
deposited with your financial institution. This is particularly
important if you do not have easy access to your financial
institution.
With Direct Deposit, your money will be credited electronically
to your bank account on the day your check is issued. A Direct
Deposit Advice will be mailed to your home address on the
first of each month. Funds may be deposited into a checking
or savings account in any U.S. financial institution you choose.
CalSTRS supports and encourages enrollment in Direct Deposit.
If you would like Direct Deposit, you can request a form
from the CalSTRS automated telephone system at (800) 228-5453.
Or call CalSTRS at (800) 228-5453 or (916) 229-3870.
CalSTRS does not currently provide health insurance coverage.
However, you may authorize CalSTRS to deduct group insurance
premiums from your monthly retirement benefit. Complete
instructions on this subject are included in the service retirement
application packet.
Post-Retirement Employment
Your only restrictions on employment after service retirement
are within the public school system of California.*
You may accept employment outside the California public school
system in any capacity and continue to receive your CalSTRS
service retirement benefit with no limitation on your earnings.
However, if you are performing creditable service in kindergarten
through community college as an employee of a public school
district, an independent contractor or an employee of a third
party, there is a restriction on the amount you can earn without
affecting your CalSTRS service retirement benefit. (See
Class-Size Reduction below for exception for K–12.)
As of fiscal year 2007-2008, the limit on post-retirement earnings
from public school employment is $27,940 for the school year.
Each July 1, the earnings limit is adjusted to reflect specified
increases. CalSTRS notifies employers and members retired
for service of each year’s earnings limit.
*The Education Code prohibits employment in a classified
position while a member is retired for service. The only exception
is employment as a teacher’s aide.
Your CalSTRS retirement benefit will be reduced by the
amount of creditable earnings from public school employment
in excess of the limit established by law.
Post-retirement employment for creditable service may not
be earlier than your effective date of retirement.
For more information on the earnings limit, see
topics 370 and 371 under Quick Topics.
The Class-Size Reduction Program provides funding for school
districts to reduce class sizes to no more than 20 pupils
per classroom in kindergarten through third grades. CalSTRS
members who retired for service on or before January 1, 2004,
and are subsequently hired to fill vacancies in grades K–12
created by the Class-Size Reduction Program are exempt from
the post-retirement earnings limitation, provided documentation
for this exemption is submitted by your employer.
Employers can certify exemptions for the period beginning
July 1, 1996, and extending through June 30, 2008, provided
the employment meets the criteria established by law.
Reinstatement to Active Member Status
If you are a CalSTRS member who has retired from service, you may be reinstated to member
status upon receipt of a written request to terminate your retirement benefit.
The election to terminate your service retirement benefit must take place no earlier than
six months prior to the effective date of the termination and no earlier than the first day
of the month that the election is received by CalSTRS. Should you change your mind, an
application to terminate a service retirement benefit may be canceled as long as the request
is received by the last day of the month that the termination was to take effect.
CalSTRS strongly recommends you meet with a benefit counselor
if you are planning to reinstate to active member status.
One Year Between Retirements
At least one year must elapse from the date of your reinstatement to active member status
(from either service retirement or disability retirement) before you may retire again from CalSTRS.
Qualifying for Disability or Survivor Benefits
You must earn at least one year of service credit after the date of your reinstatement from service
retirement before you qualify for disability benefits or survivor benefits.
Golden Handshake
If you retired on or after January 1, 1985, and reinstate,
you will lose any additional service credit that you may have
acquired by participating in the Golden Handshake Program.
Pre-Retirement Election of an Option
You are not eligible to file a pre-retirement election of
an option until one year has elapsed after the date of reinstatement
from service retirement. However, if you retired for service
under an option, that option will automatically become a pre-retirement
election when you reinstate.
Coverage B
When eligible, you will be covered by Coverage B for survivor and disability benefits.
Benefit Calculation
If you reinstated on or after September 30, 1992, when you
retire for service a second time, your new service retirement
benefit will be equal to the sum of both the following:
- An amount equal to the last Member-Only benefit received
immediately before reinstatement, increased by the 2 percent
Annual Benefit Adjustment that would have been applied to the benefit
if you had not reinstated, plus,
- An amount based on service earned since your last reinstatement,
your age at the subsequent retirement and final compensation.
(You will not be eligible for the career bonus on service earned since your last reinstatement.)
Discontinuing Withholding of Health Insurance Premiums
If CalSTRS is withholding health insurance premiums from
your benefit and you decide to reinstate, you will need
to make premium payment arrangements with your health insurance carrier.
Beneficiary Designation
Throughout your career, it is important to keep a valid and
current CalSTRS beneficiary designation form on file at CalSTRS.
A lump-sum death payment will be payable to your designated
beneficiary if you should die. If no beneficiary designation
is in effect on the date of death, the lump-sum death payment
will be paid to your estate.
A valid beneficiary designation, with the beneficiary’s
current address, will eliminate the need for a lengthy search
for potential beneficiaries and reduce the amount of time
necessary to process and distribute funds payable.
A beneficiary designation received by CalSTRS after January
1, 1987, remains valid until revoked by the member. Marriage,
dissolution or annulment after that date does not automatically
invalidate a beneficiary designation, however it may invalidate
the former spouse or partner as a recipient unless you file
a new designation form after the dissolution or termination
date naming your former spouse or partner.
If, however, your most recent beneficiary designation was
received before January 1, 1987, and a marriage, dissolution
or annulment occurred after the designation was received by
CalSTRS and before January 1, 1987, the designation is invalid.
Your CalSTRS Annual Statement of Account identifies your
designated beneficiaries. You can designate one or more beneficiaries,
and there is no restriction on who you may name.
For additional information, call CalSTRS’ automated
telephone system at (800) 228-5453 to request a beneficiary
designation form.
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