Defined Benefit Program

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 final compensation.

Two benefit structures

The California Public Employees’ Pension Reform Act of 2013 made significant changes to the benefit structure that primarily affect members first hired to perform CalSTRS creditable activities on or after January 1, 2013. As a result, CalSTRS has two benefit structures.

Membership eligibility

You are eligible for the Defined Benefit Program if you’re an employee of the California public school system, prekindergarten through community college, in a position that requires you to either have a credential, certificate or permit or meet the minimum standards adopted by the Board of Governors of the California Community Colleges.

Contributions

Under the CalSTRS Funding Plan, contribution rates from all parties—members, employers and the state—to the Defined Benefit Program were increased gradually over several years.

Refund of contributions

If you no longer work in a CalSTRS-covered position, you can leave your money in CalSTRS until you reach 70½ or request a refund.

Working after retirement

If you return to work after service retirement and perform retired member activities, including substitute teaching, as an employee of a California public school system, an employee of a third party, or an independent contractor, there are restrictions.

CalSTRS pay dates

Scheduled benefit payment dates. December direct deposit payments are made in January of the following year. Mailing dates are determined by the State Controller’s Office, the check issuer.

Reading your Form 1099-R

Form 1099-R is the IRS form reporting a taxpayer’s distributions from pensions, annuities, IRAs, insurance contracts, profit-sharing plans and/or retirement plans.