Think Twice About a Benefit Refund
If you’re leaving your public school position and are thinking of applying
for a refund of your CalSTRS defined benefit, we urge you to think again.
If You Refund
What You Get
- You walk away with your contribution and credited interest on your money.
You may also receive tax-deferred members’ contributions under the employer
Pick-Up Program.
— You don’t receive contributions made by your employer or the state. - If you refund and later want to redeposit your contribution and interest, you would have to pay the amount of your refund, plus interest that would have been earned if you had not refunded.
If You Retain Your CalSTRS Membership
What You Get
- A monthly benefit for life beginning at age 55 with five or more years of service credit.
- Compounded interest accrued.
- Your prior service credit will count toward retirement benefits if you return to teaching.
- A CalSTRS retirement even if you have less than five years of service credit when you retire from certain other public retirement systems.
- A valuable addition to your total retirement income even with a few years of CalSTRS service credit.
Here’s an example of what could happen if you leave teaching but maintain your CalSTRS membership:
Member received six years of service credit and plans |
|
|---|---|
| 6 | Years of earned service credit |
| x 0.024 | Percentage based on age at retirement |
| x $3,333 | Highest average monthly teaching salary for three consecutive years |
| = | |
| $480 | Highest, or unmodified, lifetime monthly benefit |
Estimate your CalSTRS retirement benefit online at www.CalSTRS.com/Calculators.
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