- What is the "ad
hoc increase"?
- Who is eligible for
the ad hoc increase?
- What do I need to do
to receive this increase?
- When will I receive
this increase?
- Will the ad hoc increase
reduce the amount of my quarterly supplemental payments?
- Will the 2 percent
COLA that is applied annually in September also be applied
to my ad hoc increase?
- I retired in 1982;
however, I reinstated, worked an additional ten years, and
then re-retired in 1992. Which retirement date will be used
to determine the percentage increase I receive?
- I am an option beneficiary
payee for a member who retired in 1977 and died in 1992.
Will the ad hoc increase I receive be based on my spouse's
date of retirement or on the date of death?
- I am the beneficiary
of a member who deceased in 1977 prior to retirement, with
a pre-retirement option election, or Coverage A family allowance,
or Coverage B survivor benefit. Am I eligible for the ad
hoc increase?
- What are the scheduled
percentage increases for AB 429?
- I didn't receive an
eligibility notification letter and I believe I am eligible
for this increase. What should I do?
- I retired in 1993
under Alternative C, Early Retirement Limited Term Reduction
Program, and will not revert to normal retirement until
2002. How will my ad hoc increase be determined?
- The benefit effective
date for my Disability Allowance was July 1, 1973. On January
14, 1990, I was converted to Service Retirement. How will
my ad hoc increase be determined?
- The benefit effective
date for my Disability Allowance was July 1, 1973. I returned
to active status in 1976, and then retired on Service Retirement
in 1981. How will my ad hoc increase be determined?
- I retired in June
1998. Why won't I receive an ad hoc increase?
- I am eligible for
the ad hoc increase, but working under the earnings limitation.
How will the increase affect me?
- Can I waive the ad
hoc increase?
- I am the death beneficiary
of a member who was eligible for the ad hoc increase, received
monthly benefits on January 1, 2001, and deceased in April
2001. Am I eligible for the ad hoc increase?
- I am eligible to receive
Family Allowance at Age 60, but I postponed my benefit until
2002. Will I be eligible for the ad hoc increase?
Assembly Bill 429 (Chapter 1027, Statutes of 2000) was enacted
to enhance the purchasing power for CalSTRS members or their
beneficiaries whose benefit effective date was on or before
December 31, 1997. This increase to the monthly allowance
is based on the normal allowance plus cost-of-living adjustment
(COLA) received as of January 1, 2001, excluding minimum guarantee
payments. The amount of the increase ranges from 1 to 6 percent,
depending on the calendar year in which the benefit was first
payable. For more information, you may also call the CalSTRS
automated system toll-free at 1-800-228-5453 and request Teletalk
message number 606. If you have questions, please call CalSTRS
at a temporary, toll-free number set up for ad hoc increase
questions at 877-598-2972.
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All CalSTRS benefit recipients who began receiving a benefit
due to the member's disability, retirement, or death on or
before December 31, 1997, are eligible.
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Nothing. CalSTRS has identified all eligible members and
beneficiaries and will send eligibility notification letters
to them in July 2001.
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The ad hoc increase for the month of July 2001 will be included
in your July allowance issued August 1, 2001, and will be
reflected in the COLA amount on the payment stub. A separate
payment will be issued that reflects payment of the ad hoc
increase for the period January 1, 2001, through June 30,
2001. Thereafter, the increase will be included in your regular
monthly allowance payments.
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No. Your quarterly supplemental payments will not be affected
by the ad hoc increase. The ad hoc increase will be paid in
addition to any increase in your quarterly supplemental payments.
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The ad hoc increase will receive a separate, annual 2 percent
COLA. The first COLA for the ad hoc increase will be payable
on September 1, 2002, and will be reflected in your October
2002 warrant.
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The percentage increase for most members with multiple retirement
dates will be determined by the most recent date of retirement.
The exception occurs for members who receive a Disability
Allowance or Disability Retirement, reinstate for six months
or less, and then return to the same benefit type, that is,
Disability Allowance or Disability Retirement, respectively.
For those members, the increase will be based on the original
effective date of their Disability Allowance or Disability
Retirement benefit.
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Option beneficiary payees will receive the percentage increase
based on the member's benefit effective date.
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Yes. As a beneficiary receiving an allowance on January 1,
2001, under a pre-retirement option election, Coverage A family
allowance, or Coverage B survivor benefit, your percentage
increase will be based on the member's date of death.
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The ad hoc percentage increases are determined as follows:
| Period
when Disability, Death or
Retirement Occurred |
Applicable
Percentage
Increase |
| After December 31,1997 |
0 % |
| 1997 |
1 % |
| 1995 through 1996 |
2 % |
| 1990 through 1994 |
3 % |
| 1985 through 1989 |
4 % |
| 1975 through 1984 |
5 % |
| 1974 or earlier |
6 % |
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If you believe you are eligible for the ad hoc increase and
you did not receive an eligibility notification letter, you
should write to us at CalSTRS, P.O. Box 15275, Sacramento,
CA 95851, or e-mail us. You may also call and speak to a CalSTRS
customer service representative at a temporary, toll-free
number set up for ad hoc increase questions at 877-598-2972.
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The ad hoc increase for members who retired under Alternative
C on or before December 31, 1997, will be determined based
on the members' Alternative C retirement date. Accordingly,
you will receive a percentage increase of 3 percent of your
normal allowance that you received on January 1, 2001.
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The ad hoc increase for members who converted from a Disability
Allowance to Service Retirement will be based on the benefit
effective date of your Disability Allowance, as long as you
did not return to active status prior to your Service Retirement.
Your percentage increase would be 6 percent.
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The ad hoc increase for members who received a Disability
Allowance, reinstated to active status, and then retired on
Service Retirement, will be based on the member's Service
Retirement benefit effective date. In these situations, the
ad hoc increase will be determined in the same manner as multiple
retirements where the ad hoc increase is based on the member's
most recent date of retirement. In your case, your percentage
increase would be 5 percent.
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The ad hoc increase was intended to enhance the purchasing
power of the original allowances. The annual 2 percent COLA
increases in allowance received after 1997 have enabled members'
allowances to keep pace with inflation.
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The ad hoc increase will not affect the earnings limitation.
The amount of your earnings limitation will remain the same.
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Yes. You may waive the increase by informing CalSTRS in writing
that you are waiving receipt of the ad hoc increase. Please
send your letter to: CalSTRS, Service Retirement Division,
P.O. Box 15275, Sacramento, CA 95851-0275.
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No. Death beneficiaries of eligible members who deceased
after January 1, 2001, are not eligible for the ad hoc increase.
The increase will be payable to the member, however, up to
the date of death.
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No. Beneficiaries who were eligible for a monthly allowance
prior to January 1, 2001, but postponed receiving benefits,
will not be eligible to receive the ad hoc increase if they
were not receiving a benefit payment on January 1, 2001. Since
you were not receiving a benefit on January 1, 2001, you are
not eligible for the ad hoc increase.
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