WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System’s (CalSTRS) Corporate Governance 2014 Annual Report shows its engagement with small-cap companies yielded remarkable progress in the adoption of majority voting standards for the election of corporate directors.
The Corporate Governance 2014 Annual Report reflects four years of work with small-cap companies—those with a capitalization of $2 billion or less—to adopt the majority-vote standard. The standard requires directors to receive a majority of shareholder support to be elected to the board.
Service credit is the accumulated period of time, in years and partial years, during which you receive creditable compensation and make contributions to the Defined Benefit Program. In addition to credit for actual service, you may receive service credit for creditable compensation for certain employer-approved leaves of absence. Service credit may also be purchased under certain circumstances.
The age factor is the percent of final compensation you are entitled to for each year of service credit. This percentage is determined by the date you became a CalSTRS member and your age on the last day of the month in which your retirement is effective.
If you are a member under CalSTRS 2% at 60, and you retire with 25 or more years of service credit, CalSTRS uses your highest 12 consecutive months of average earnable compensation as the final compensation component in your retirement calculation.
You may qualify for one or more benefit enhancements that will increase your monthly retirement benefit. You may use up to two-tenths of one year of unused sick leave credit to qualify for a benefit enhancement, but not to qualify for retirement.
You can elect an option to provide a lifetime monthly benefit to someone after you die. An option allows you to distribute your retirement benefit over your life and the life of your option beneficiaries. Your option election is effective as of your retirement date.
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:
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