Longevity Bonus Won’t Be Around Forever
The longevity bonus is scheduled to sunset January 1, 2011. This change could affect you if you are close to earning 30 years of service credit.
The longevity bonus adds a set dollar amount to your monthly Member-Only Benefit if you have at least 30 years of earned service credit by December 31, 2010. If you are retiring with a beneficiary option, your bonus will be reduced by the same option factor that applies to your regular benefit.
| By Dec. 31, 2010, if you earned: | Added to Member-Only monthly benefit: |
|---|---|
| 30 years | $200 |
| 31 years | $300 |
| 32 or more years | $400 |
You don’t have to retire by January 1, 2011, to qualify for the longevity bonus, but you must have earned at least 30 years of service credit by this date.
If you don’t think you’ll have 30 years of service credit in time to qualify for the longevity bonus, you may be eligible to purchase certain types of service credit to get you there. It must be purchased and completely paid for before December 31, 2010. The purchased “time” is used in calculating your retirement benefit.
There are different types of service credit you may be able to purchase for the purposes of qualifying for the longevity bonus:
- Redeposit: This restores service credit you lost if you left public school employment, took a refund, and then returned to teaching.
- Permissive Service: This includes a leave of absence due to maternity, paternity or medical leave, employerapproved sabbatical leave, some active military leave, and out-of-state teaching covered by a public pension plan.
Nonqualified service — also called “air time” — does not count toward qualifying for the longevity bonus.
For more information about the longevity bonus or purchasing service credit, go to www.CalSTRS.com, call 800-228-5453 or consult the CalSTRS Member Handbook.
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