CalSTRS Defined Benefit Program is a traditional defined benefit plan that provides retirement, survivor and disability benefits. Your Defined Benefit retirement benefit is based on a formula set by law using your age, service credit and final compensation.
As a result of 2012 legislation, CalSTRS now has two benefit structures: Members first hired on or before December 31, 2012, are under CalSTRS 2% at 60, and those first hired on or after January 1, 2013, are under CalSTRS 2% at 62.
The California Public Employees’ Pension Reform Act of 2013
(Chapter 296, Statutes of 2012) made significant changes to the
benefit structure that primarily affect members first hired to
perform CalSTRS creditable activities on or after January 1,
2013. Three provisions also affect current members. As a result,
CalSTRS now has two benefit structures:
CalSTRS 2% at 60 – members first
hired on or before December 31, 2012.
CalSTRS 2% at 62 – members first
hired on or after January 1, 2013.
You are eligible for the Defined Benefit Program if you’re an employee of the California public school system, prekindergarten through community college, in a position that requires you to:
Have a credential, certificate or permit, or
Meet the minimum standards adopted by the Board of Governors of the California Community Colleges.
Considering a career change? If you no longer work in a
CalSTRS-covered position, you can leave your money in CalSTRS
until you reach 70½ or request a refund.
If you return to work after service retirement in a position with
the California public school system as an employee, an employee
of a third party, or an independent contractor, there are
restrictions.
Form 1099-R is the Internal Revenue Service form reporting a taxpayer’s distributions from pensions, annuities, IRAs, insurance contracts, profit-sharing plans and/or retirement plans (including section 457 state and local government plans).
Your Retirement Progress Report provides a personalized
overview of your CalSTRS benefits and contains detailed
information and resources for planning your financial future. The
report shows the status of your accounts as of June 30 of the
prior school year.
Important Note: Federal Tax Withholding Rates for February 1 CalSTRS Benefit Recipient Payments
Late changes to the Internal Revenue Service federal tax withholding rates effective January 1, 2013 have resulted in CalSTRS withholding additional federal taxes from benefit payments dated February 1, 2013. CalSTRS is aware of the issue, and we are promptly rectifying the situation by implementing a swift solution for our benefit recipients, including reimbursement of the over-withheld amounts as detailed. Read More
CalSTRS Pay Dates
Scheduled dates for benefits paid in 2013, which include direct deposits received in January 2014, are listed in the table below. Mailing dates are determined by the State Controller’s Office, the check issuer.
