CalSTRS provides retirement, disability and survivor benefits for full-time and part-time California public school educators through a hybrid retirement system consisting of its Defined Benefit, Defined Benefit Supplement and Cash Balance Benefit programs, and a voluntary defined contribution plan called CalSTRS Pension2.
CalSTRS Defined Benefit Program is a traditional defined benefit
plan that provides retirement, survivor and disability
benefits. Your Defined Benefit retirement benefit is based
on a formula set by law using your age, service credit and
As a result of 2012 legislation, CalSTRS now has two
benefit structures: Members first hired on or before
December 31, 2012, are under CalSTRS 2% at 60, and those
first hired on or after January 1, 2013, are under CalSTRS
2% at 62.
The Defined Benefit Supplement is a hybrid cash balance plan for
Defined Benefit members that provides additional savings for
Funds come from compensation earned from service in one school
year in excess of one year of service credit and limited-term
salary increases. From January 1, 2001, through December 31,
2010, funds came from 25 percent of your monthly CalSTRS
CalSTRS Pension2 is CalSTRS voluntary defined contribution plan.
Pension2 offers the opportunity to invest through tax advantaged
payroll deductions in low cost, flexible 403(b), Roth 403(b) and
457(b) plans for additional retirement savings.
Complements your CalSTRS retirement benefit.
Features low fees and expenses, so more of your money works
Offers tax-advantaged contributions and a variety of
Provides objective advice and planning services at no
The CalSTRS Medicare Premium Payment Program, which pays Medicare
Part A hospital insurance premiums for certain eligible
retired members, is not being offered to members with a
retirement effective date on or after July 1, 2012. If a full
funding plan is enacted by the Legislature, the Teachers’
Retirement Board may elect to extend the program at that time.
Electronic privacy is crucial for the ongoing success of the
Internet as a convenient means to provide customer service. Your
personal information will be used only to conduct CalSTRS-related
Your retirement benefit is based on a formula (Service Credit x
Age Factor x Final Compensation = Member-Only Benefit). How
confident are you in your understanding of how this formula
determines your Member-Only Benefit amount?