An option under the Defined Benefit Program allows you to provide a monthly
lifetime income to one or more loved ones after your death. If you elect an option,
your monthly benefit is reduced, depending on your age and your option beneficiary's
age at the time you elect the option. You may elect an option when you retire or
when you are eligible to retire.
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An annuity is a monthly benefit payment. You may choose an annuity if you have at
least $3,500 in your
Cash Balance Benefit Program or
Defined Benefit Supplement Program. You may choose an annuity when you retire or become disabled.
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To reduce the complexity of the options and annuity structure to meet the needs of our members and participants.
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Effective January 1, 2007:
- Defined Benefit Program Options 2, 3, 4 and 5 are not available for selection
- Option 6 is renamed 100% Beneficiary Option
- Option 7 is renamed 50% Beneficiary Option
- Option 8 is renamed Compound Option
- 75% Beneficiary Option is added
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Effective January 1, 2007:
- Single Life Annuity Without Cash Refund is not available for selection
- Single Life Annuity With Cash Refund is renamed Member-Only Annuity
(for Defined Benefit Supplement) or Participant-Only Annuity (for Cash Balance Benefit Program)
- 100% Joint and Survivor Annuity is renamed 100% Beneficiary Annuity
- 50% Joint and Survivor Annuity is renamed 50% Beneficiary Annuity
- 75% Beneficiary Annuity is added
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In January 2007, members or participants eligible to make a change received a personalized
letter from CalSTRS that described the option and/or annuity choices available to them.
If you are a retired member with an option or an active member with a pre-retirement election
of an option, you may be eligible to change your option without an assessment during the January 1, 2007,
through June 30, 2007, window period.
Under the Defined Benefit Supplement Program or Cash Balance Benefit Program, you may be eligible
to change to the 75% Beneficiary Annuity if you retired under the 50% Joint and Survivor Annuity or
100% Joint and Survivor Annuity.
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If you have Options 2 through 7, you may keep your current option election or change to 100% Beneficiary,
75% Beneficiary or 50% Beneficiary options.
If you have Option 8, you may make the respective changes permitted within that option.
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If you change your option election during the window period, your retirement benefit will be calculated using
your age and your option beneficiary's age at the time your pre-retirement election became effective.
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Current restrictions on changing from a Member-Only Benefit (formerly known as unmodified) to an option will apply
during the window period. Members who previously elected a Member-Only Benefit may be allowed to elect an option
after retirement if they meet very specific criteria.
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You may keep your current option choice or:
- Change to 100% Beneficiary Option from Option 2 OR
- Change to 75% Beneficiary Option from Option 2 through 7 OR
- Change to 50% Beneficiary Option from Option 3, 4, or 5
If you have Option 8, you may make respective changes permitted within that option.
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Yes. You may elect a new option and/or annuity without assessment during the January 1, 2007, through June 30, 2007,
window period if:
- You name the same option/annuity beneficiary
- Your option/annuity beneficiary is living, and neither your nor your option/annuity beneficiary are
afflicted with a known terminal illness
- Your spouse or registered domestic partner signs the option election form or you submit a
Justification for
Non-Signature of Spouse or Registered Domestic Partner form
- Your change does not violate any community property rights established under a court order
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Yes. Your new option will be calculated using your age and the age of your option beneficiary when your
option change becomes effective. Your benefit may increase or decrease. In January 2007, retired members
eligible to make a change received a personalized letter from CalSTRS that described their option choices.
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The change will be effective on the signature date of the election form, provided that your completed form
is dated no later than June 30, 2007, and is received by CalSTRS headquarters in Sacramento within 30 days
of the signature date.
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No. Members who previously elected a single life or period certain annuity are not eligible to change their annuity.
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- CalSTRS member newsletters.
- 2007 Your Retirement Guide.
- Benefits Counselors are available to assist you. Counseling appointments can be face-to-face or over the
phone. You can schedule a counseling appointment by calling CalSTRS Customer Service toll-free at 800-288-5453.
- Visit www.CalSTRS.com.
- For other option questions, contact the Option Change Information Center toll-free at 866-245-9394.
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