Employer Information Circulars
Employer information circulars
Employer Information Circulars are sent to school district and community college employers as informal guidance that provides immediate information on a single topic.
For an accessible version of any circular on this page, contact ADACoordinator@CalSTRS.com.
CalSTRS will no longer be issuing hard copies of employer information circulars and employer directives by mail beginning on July 1, 2019.
Discontinuing delivery of employer information circulars and employer directives by mail is an extension of our ongoing sustainability efforts to conserve environmental resources.
Employers are responsible for keeping themselves informed and apprised of changes in the law. Employer information circulars and employer directives are intended to serve as a reference only; they do not take precedence over the law.
If you wish to receive a notification when new employer information circulars and employer directives are available, subscribe to email updates. Please be aware that employers are responsible for updating their contact information for emailed employer information circulars and employer directives.
If you have any questions, please contact your CalSTRS Employer Services Representative.
EIC21-1 Volume 37 Issue 1
Pension plan limits for tax year 2021
The purpose of this circular is to alert employers to the Internal Revenue Service pension plan limits for tax year 2021 and to inform employers of the creditable compensation limit under the Teachers’ Retirement Law for California State Teachers’ Retirement System (CalSTRS) members and participants who are subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA). CalSTRS is not authorized to give tax advice; accordingly, if you have any questions about these or any other Internal Revenue Code (IRC) sections, please contact your tax advisor or the Internal Revenue Service.
The following limits apply to benefits paid and compensation creditable to the Defined Benefit, the Defined Benefit Supplement and the Cash Balance Benefit programs.
EIC20-6 Volume 36 Issue 6
Effects of Reduction in School Funds
Supersedes Employer Information Circular Volume 25: Issue 3
While there is no state mandate to reduce school funds in the 2020-21 state budget, CalSTRS recognizes that some schools may be experiencing other reductions in school funds. Due to budget constraints, some school districts may be considering furloughs, salary reductions and retirement incentives. The following is information about the potential impact of furloughs, salary reductions and retirements to employers and CalSTRS members.
EIC20-5 Volume 36 Issue 5
Fiscal year 2020-21 creditable compensation limit for Defined Benefit CalSTRS 2% at 62 members and Cash Balance participants subject to PEPRA
The purpose of this circular is to inform employers of the 2020-21 fiscal year limit on creditable compensation for CalSTRS 2% at 62 Defined Benefit Program members and Cash Balance Benefit Program participants subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
EIC20-4 Volume 36 Issue 4
Effects of school closures due to COVID-19
CalSTRS understands the need for guidance as school districts, county offices of education or other governing bodies authorize school closures based on COVID-19 concerns. CalSTRS is committed to working with our employer partners during this time of uncertainty and will continue to monitor the situation and communicate updated information as it becomes available from the Governor’s Office, the California Department of Education and the California Health and Human Services Agency.
EIC20-3 Volume 36 Issue 3
Pension plan limits for tax year 2020
The purpose of this circular is to alert employers to the Internal Revenue Service pension plan limits for tax year 2020 and to inform employers of the creditable compensation limit under the Teachers’ Retirement Law for California State Teachers’ Retirement System (CalSTRS) members and participants who are subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA). CalSTRS is not authorized to give tax advice; accordingly, if you have any questions about these or any other Internal Revenue Code (IRC) sections, please contact your tax advisor or the Internal Revenue Service.
EIC20-2 Volume 36 Issue 2 (WITHDRAWN)
Clarifying leave of absence
Employer Information Circular 20-2 (Volume 36, Issue 2) regarding Clarifying Leave of Absence has been withdrawn. Please disregard EIC20-2 and refer to Employer Directive 2016-02 regarding the definition of Leave of Absence while retroactive legislative changes to existing law are being pursued. Employer representatives will be contacting county offices of education and other employers that report directly to CalSTRS to discuss further instructions if you have CalSTRS members on paid leave.
EIC20-1 Volume 36 Issue 1
Crediting of contributions and penalties and interest payments
The purpose of this circular is to notify employers that effective January 21, 2020, CalSTRS has discontinued the process of issuing refund checks to employers for overpayment of contributions and/or penalties and interest payments. Effective January 21, 2020, overpayment of contributions and/or penalties and interest payments will be credited to employer accounts.
EIC19-2 Volume 35 Issue 2
Fiscal Year 2019-20 Creditable Compensation Limit For Defined Benefit CalSTRS 2% At 62 Members And Cash Balance Participants Subject To PEPRA
The purpose of this circular is to inform employers of the 2019-20 fiscal year limit on creditable compensation for CalSTRS 2% at 62 Defined Benefit Program members and Cash Balance Benefit Program participants subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
The creditable compensation limit applies to compensation
creditable to the Defined Benefit, Defined Benefit
Supplement and Cash Balance Benefit programs.
EIC19-1 Volume 35 Issue 1
Pension Plan Limits For Tax Year 2019
The purpose of this circular is to alert employers to the
Internal Revenue Service pension plan limits for tax year 2019
and to inform employers of the creditable compensation limit
under the Teachers’ Retirement Law for California State Teachers’
Retirement System (CalSTRS) members and participants who are
subject to the California Public Employees’ Pension Reform Act of
2013 (PEPRA).
Employer information circulars and employer directives no longer available via mail
The purpose of this letter is to inform employers that CalSTRS will no longer be issuing hard copies of employer information circulars and employer directives by mail beginning on July 1, 2019.
Discontinuing delivery of employer information circulars and employer directives by mail is an extension of our ongoing sustainability efforts to conserve environmental resources.
EIC18-4 Volume 34 Issue 4
Creditable Compensation Limit For Defined Benefit CalSTRS 2% At 62 Members And Cash Balance Participants Subject To PEPRA
The purpose of this circular is to inform employers of the
2018-19 fiscal year limit on creditable compensation for CalSTRS
2% at 62 Defined Benefit Program members and Cash Balance Benefit
Program participants subject to the California Public Employees’
Pension Reform Act of 2013 (PEPRA).
EIC18-3 Volume 34 Issue 3
Reporting and Payment of Member and Employer Contributions
The purpose of this circular is to clarify the options available
to employers regarding the reporting and remitting of
contributions and the impact to members.
Supersedes 2011 Employer Information Circular Volume 27, Issue
5
The purpose of this circular is to clarify the options available
to employers
regarding the reporting and remitting of contributions and the
impact to members.
EIC18-2 Volume 34 Issue 2
Expected 1 Percent Increase in the CalSTRS 2% at 62 Member Contribution Rate
The purpose of this circular is to inform employers and other stakeholders that the board will meet in May 2018 and is expected to adopt a revised normal cost for CalSTRS 2% at 62 members, fully reflecting all of the new actuarial assumptions adopted in 2017. The new normal cost is expected to result in an increase of 1 percent of creditable compensation in the contribution rate for CalSTRS 2% at 62 members, adjusting that rate from 9.205 percent to 10.205 percent. The new contribution rate would be effective on July 1, 2018.
The employer contribution rate will continue to increase as per the schedule set in statute. For fiscal year 2018–19, the employer contribution rate to the Defined Benefit Program is 16.28 percent of creditable compensation.
The May board meeting will be broadcast online at CalSTRS.com/teachers-retirement-board. After the May meeting, CalSTRS will issue an Employer Directive to announce the actual contribution rates in effect for the 2018–19 fiscal year.
EIC18-1 Volume 34 Issue 1
Pension Plan Limits for Tax Year 2018
The purpose of this circular is to alert employers to the Internal Revenue Service pension plan limits for tax year 2018 and to inform employers of the creditable compensation limit under the Teachers’ Retirement Law for California State Teachers’ Retirement System (CalSTRS) members and participants who are subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA). CalSTRS is not authorized to give tax advice; accordingly, if you have any questions about these or any other Internal Revenue Code (IRC) sections, please contact your tax advisor or the Internal Revenue Service.
The following limits apply to benefits paid and compensation creditable to the Defined Benefit (DB), the Defined Benefit Supplement (DBS) and the Cash Balance (CB) Benefit programs.
EIC17-5 Volume 33 Issue 5
Pension Solution Project: Functional Rollouts and New File Formats
Pension Solution, the CalSTRS project to replace the current pension system technology and processes, is well underway. Before the conclusion of this significant project, multiple systems used by employers, CalSTRS staff and members will be replaced. The replacement of the current versions of the Secure Employer Website (SEW) and the Contribution Account Portal (CAP) will bring the greatest changes to employers.
The project is being rolled out in three phases to occur over the next several years.
EIC17-4 Volume 33 Issue 4
Fiscal Year 2017-18 Creditable Compensation Limit for Defined Benefit CalSTRS 2% at 62 Members and Cash Balance Participants Subject to PEPRA
The purpose of this circular is to inform employers of the 2017-18 fiscal year limit on creditable compensation for CalSTRS 2% at 62 Defined Benefit Program members and Cash Balance Benefit Program participants subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
The creditable compensation limit applies to compensation creditable to the Defined Benefit, Defined Benefit Supplement and Cash Balance Benefit programs.
EIC17-3 Volume 33 Issue 3
Employer Offering 403(b) Program
In March 2017, CalSTRS will complete a 403bCompare.com website redesign. CalSTRS 403bCompare program resulted from legislation requiring CalSTRS to create an online resource for free objective information about 403(b) products offered by vendors that are registered with 403bCompare.
EIC17-2 Volume 33 Issue 2
Pension Plan Limits for Tax Year 2017
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2017 and to inform employers of the creditable compensation limit under the Teachers’ Retirement Law for California State Teachers’ Retirement System (CalSTRS) members and participants who are subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
The following limits apply to benefits paid and compensation creditable to the Defined Benefit (DB), the Defined Benefit Supplement (DBS) and the Cash Balance (CB) Benefit programs.
CalSTRS is not authorized to give tax advice; accordingly, if you have any questions about these or any other Internal Revenue Code (IRC) sections, please contact your tax advisor or the Internal Revenue Service.
EIC17-1 Volume 33 Issue 1
Potential Changes in CalSTRS Actuarial Assumptions May Increase 2% at 62 Member and State Contribution Rates; Employer Rate Not Affected At This Time
The purpose of this circular is to inform employers and other stakeholders of the decision-making process involved in determining the actuarial assumptions and to provide information regarding the impact and timing of any potential contribution rate increases for certain CalSTRS members and the state that may result from changes to these assumptions.
EIC16-4 Volume 32 Issue 4
Fiscal Year 2016-17 Creditable Compensation Limit for Defined Benefit
CalSTRS 2% at 62 Members and Cash Balance Participants Subject to PEPRA
The purpose of this circular is to inform employers of the 2016-17 fiscal year limit on creditable compensation for CalSTRS 2% at 62 Defined Benefit Program members and Cash Balance Benefit Program participants subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
EIC16-3 Volume 32 Issue 3
Exemption to the Separation-From-Service Requirement
In response to concerns about the difficulty employers are having in hiring teachers, including substitute teachers, during the current teacher shortage, the purpose of this circular is to inform employers that existing law provides for an exemption to the separation-from-service requirement imposed immediately after retirement if the retired CalSTRS Defined Benefit Program member or Cash Balance Benefit Program participant receiving an annuity is hired in a critically needed position and meets other eligibility criteria.
EIC16-2 Volume 32 Issue 2
CalPERS/CalSTRS Decision Tree Discontinued
Supersedes Employer Information Circular Volume 25; Issue 11 (EIC09-11)
This employer information circular is to inform employers to discontinue the use of the CalPERS/CalSTRS Decision Tree.
The CalPERS/CalSTRS Decision Tree was developed as a job aid to
help employers in determining if an employee is eligible to make
a retirement system election or permissive membership election.
It was not intended to take precedence over the law. CalSTRS does
not rely on the scenarios outlined in the CalPERS/CalSTRS
Decision Tree when determining retirement system election or
permissive membership election eligibility; therefore, we are
discontinuing the use of the CalPERS/CalSTRS Decision Tree.
EIC16-1 Volume 32 Issue 1
Pension Plan Limits for Tax Year 2016
The purpose of this circular is to alert employers that the
Internal Revenue Service has announced the pension plan limits
for tax year 2016 and to inform employers of the creditable
compensation limit under the Teachers’ Retirement Law for
California State Teachers’ Retirement System (CalSTRS) members
and participants who are subject to the California Public
Employees’ Pension Reform Act of 2013 (PEPRA).
EIC15-3 Volume 31 Issue 3
Common Audit Findings
The purpose of this employer information circular is to inform County Offices of Education, School Districts, Community Colleges and Charter Schools of common employer audit findings and provide guidance to avoid these findings in the future.
EIC15-2 Volume 31 Issue 2
Fiscal Year 2015-16 Creditable Compensation Limits for Defined Benefit CalSTRS 2% at 62 Members and Cash Balance Participants Subject to PEPRA
The purpose of this circular is to inform employers of the creditable compensation limit for Defined Benefit CalSTRS 2% at 62 members and Cash Balance participants subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA) for the 2015-16 fiscal year.
EIC15-1 Volume 31 Issue 1
Pension Plan Limits For Tax Year 2015
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2015 and to inform employers of the creditable compensation limit under the Teachers’ Retirement Law for California State Teachers’ Retirement System (CalSTRS) members and participants who are subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA).
EIC14-5 Volume 30 Issue 5
Creditable Compensation Regulations Effective January 1, 2015
The purpose of this circular is to alert employers that on January 1, 2015, CalSTRS Creditable Compensation Regulations, Sections 27200 through 27602 of Chapter 2, Division 3, Title 5 of the California Code of Regulations become effective. The regulations clarify Education Code sections 22112.5, 22119.2 and 22905 and apply to CalSTRS 2% at 60 members.
EIC14-4 Volume 30 Issue 4 (REVISED)
CalSTRS Is Transitioning to New Partner for Its Pension2 403(b) and 457(b) Programs
Pension2, CalSTRS’ voluntary supplemental savings plan, is currently transitioning to its new recordkeeper, Voya FinancialTM, from TIAA-CREF. The purpose of this circular is to alert employers of the upcoming changes, in addition to providing information and resources to help make the transition easier for you and your employees.
EIC14-3 Volume 30 Issue 3
Fiscal Year 2014-15 Creditable Compensation Limits for Defined Benefit CalSTRS 2% at 62 Members and Cash Balance Participants Subject to PEPRA
The purpose of this circular is to alert employers that the creditable compensation limit for Defined Benefit CalSTRS 2% at 62 members and Cash Balance participants subject to the California Public Employees’ Pension Reform Act of 2013 (PEPRA) has changed for the 2014-15 fiscal year. The creditable compensation limit applies to compensation creditable to the Defined Benefit (DB), the Defined Benefit Supplement (DBS), and the Cash Balance (CB) Benefit programs.
EIC14-2 Volume 30 Issue 2
Employer Financial Reporting For Fiscal Year 2014-15 And New Audit Requirements
The purpose of this circular is to alert employers that Governmental Accounting Standards Board Statement No. 68 (GASB 68), effective for fiscal years beginning after June 15, 2014, will result in significant changes to their financial statements as a participating employer in the State Teachers’ Retirement Plan (STRP), a cost-sharing, multiple-employer defined benefit pension plan.
EIC14-1 Volume 30 Issue 1 (AMENDED)
Pension Plan Limits for Tax Year 2014
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2014 and to inform employers of the compensation limit under the Teachers’ Retirement Law for CalSTRS members and participants who are first hired to perform creditable service on or after January 1, 2013.
EIC13-3 Volume 29 Issue 3
Right of Retirement System Election when Changing Positions
The purpose of this circular is to provide guidance to employers in providing the right of retirement system election when a California State Teachers’ Retirement System (CalSTRS) member changes position that requires membership in another public retirement system.
EIC13-2 Volume 29 Issue 2 (AMENDED)
Reporting to the Defined Benefit Program for Part-Time Community College Faculty and Adult Education Instructors
The purpose of this circular is to remind and provide guidance for community college employers regarding how to report earnings and contributions for part-time faculty and adult education instructors.
EIC13-1 Volume 29 Issue 1
Pension Plan Limits for Tax Year 2013
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2013 and to inform employers of the compensation limit for CalSTRS members and participants who are first hired to perform creditable service on or after January 1, 2013.
EIC12-1 Volume 28 Issue 1
Positions Not Eligible for Creditable Service
The purpose of this circular is to provide guidance for employers regarding the types of positions that are not eligible for CalSTRS.
EIC11-8 Volume 27 Issue 8
Compensation Review Unit
The purpose of this circular is to announce the formation of a Compensation Review Unit in Member Account Services.
EIC11-7 Volume 27 Issue 7
Pension Plan Limits for Tax Year 2012
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2012.
EIC11-6 Volume 27 Issue 6
Medicare Premium Payment Program Retirement Deadline June 30, 2012
The purpose of this circular is to provide you with information regarding the retirement deadline for your certificated employees to participate in CalSTRS Medicare Premium Payment (MPP) Program of June 30, 2012.
EIC11-5 Volume 27 Issue 5
Reporting and Payment of Member and Employer Contributions
The purpose of this circular is to clarify reporting and remitting contributions as earned.
EIC11-4 Volume 27 Issue 4
Pension Plan Limits for Tax Year 2011
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2011.
EIC11-3 Volume 27 Issue 3
Reduced Workload Program
The purpose of this circular is to inform employers of a change to Education Code Section 22713 with regard to termination of the Reduced Workload Program (RWP).
EIC11-2 Volume 27 Issue 2
Substantiating Pay Increases and Payments of Special Circumstances
The purpose of this circular is to provide guidance for employers regarding the importance of supplying substantiating documents used for the calculation of service credit and final compensation.
EIC11-1 Volume 27 Issue 1
Update of CalSTRS 403(b) Compliance Program
The purpose of this circular is to provide an update of the CalSTRS 403(b) Compliance Program (CalSTRS 403bComply).
EIC10-6 Volume 26 Issue 6
Common Employer Audit Findings
The purpose of this circular is to inform County Offices of Education, School Districts, Community Colleges and Charter Schools of common employer audit findings and to provide guidance on preventive actions to take to avoid these findings in the future.
EIC10-5 Volume 26 Issue 5
Draft Penalty and Interest Regulation Update
CalSTRS is currently in the preliminary stages of developing and adopting regulations relating to the timely reporting and remittance of contributions made by CalSTRS members and employers. Those regulations have not been adopted, are subject to change as the regulatory process proceeds, are not yet in effect and are not expected to be in effect any earlier than mid-2012.
EIC10-4 Volume 26 Issue 4
403bCompare Vendor Removal Notification
The 403bCompare Web site has just completed a review and update
of information listed on the web site, with special
attention focused on the fee comparison section. During a routine
review of vendor products and information it was determined
that many vendors had not updated the fee
section of the web site.
EIC10-3 Volume 26 Issue 3
Reduced Workload Program - Supersedes Vol. 25; Issue 10
The purpose of this circular is to convey clarifying language with regard to the Reduced Workload Program (RWP) and our interpretation of the law.
EIC10-2 Volume 26 Issue 2
Address Updates Due Quarterly
It is important that CalSTRS maintain accurate addresses in order to mail important information to our members, such as the annual Retirement Progress Reports. In the past CalSTRS required employers to submit address file updates once a year.
EIC10-1 Volume 26 Issue 1
Pension Plan Limits for Tax Year 2010
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2010.
EIC09-12 Volume 25 Issue 12
Community College Reporting to the Defined Benefit Program for Part-Time Faculty
The purpose of this circular is to provide guidance for community colleges regarding how to report earnings and contributions for part-time faculty.
EIC09-11 Volume 25 Issue 11
Retirement System Election
The purpose of this circular is to inform you that the attached Retirement System Election form (ES 372) has been revised. Please immediately discontinue use of the old form.
EIC09-10 Volume 25 Issue 10
Reduced Workload Program
The purpose of this circular is to retract the Employer Information Circular Volume 25; Issue 9 of May 29, 2009, as it contained an error regarding the Community College requirement indicating that participation could not be above that of a department chair.
EIC09-9 Volume 25 Issue 9
Reduced Workload Program
The purpose of this circular is to remind employers of the qualifications and requirements of both the employers and employees that must be met and approved prior to participating in the Reduced Workload Program (RWP).
EIC09-8 Volume 25 Issue 8
Reporting Requirements for Community Colleges
Effective July 1, 2009, CalSTRS will require reporting of Classification Code and Base Hours on the Monthly and Supplemental Reports of Retirement Contributions (F496 files) for members employed by a community college in part-time (hourly or daily) or adult education assignments.
EIC09-7 Volume 25 Issue 7
Human Resources and Payroll Personnel
It is important that CalSTRS receive updated employee address information in order to mail communications, such as the Retirement Progress Report, to the appropriate address. CalSTRS requires employee address file updates from all employers in order to keep our database current and ensure that we have the members’ most current addresses.
EIC09-6 Volume 25 Issue 6
Contact Information for CalSTRS New Headquarters
CalSTRS Sacramento headquarters is moving in June 2009. This circular shares with you and your employees, who are CalSTRS members, contact instructions for employers and CalSTRS member services and delivery of applications and forms.
EIC09-5 Volume 25 Issue 5
Community College Part-time Instructors Reporting of Parity Pay
The purpose of this circular is to clarify for employers the ways in which community college parity payments can be reported to CalSTRS’ Defined Benefit Program.
EIC09-4 Volume 25 Issue 4
Pension Plan Limits For Tax Year 2009
The purpose of this circular is to alert employers that the Internal Revenue Service has announced the pension plan limits for tax year 2009. The following limits apply to benefits paid and compensation attributable to the Defined Benefit (DB), the Defined Benefit Supplement (DBS), and the Cash Balance (CB) Benefit Programs.
EIC09-3 Volume 25 Issue 3
Effects of Reduction of Funds to Schools
Due to budget constraints, some school districts may be considering furloughs, salary reductions and retirement incentives. Following is information about the potential effects of furloughs, salary reductions, and retirements to employers and CalSTRS members.
EIC09-2 Volume 25 Issue 2
Important Insights for Understanding the New 403(b) Regulations
New federal regulations that became effective January 1, 2009, made significant changes in the way the 403(b) plans are managed. The new rules are complex. As a result, you may be facing unintended consequences and unexpected problems.
EIC09-1 Volume 25 Issue 1
Changes to REAP Access
The purpose of this circular is to inform employers that effective March 31, 2009, CalSTRS will require the use of CalSTRS Secure Employer Web site (SEW) for all Remote Employer Access Program (REAP) applications. Access to the REAP applications using your Virtual Private Network (VPN) connection will no longer be available as of March 31, 2009.
EIC08-12 Volume 24 Issue 12
Security Agreement Modifications for Access to CalSTRS Information
Effective with Release 3.0 of the Secure Employer Web site (SEW), scheduled for early December, 2008, the security forms required for access to CalSTRS information will change.
EIC08-11 Volume 24 Issue 11
Community Colleges Temporary Employees Threshold Changes from 60 to 67 Percent
The purpose of this circular is to alert community college employers of the passage of Assembly Bill 591, Chapter 84, Statutes of 2008. The legislation takes effect on January 1, 2009.
EIC08-10 Volume 24 Issue 10
CalSTRS' Benefits are Secure
This circular is provided to update employers with information that was distributed to CalSTRS members the week of October 20, 2008, via My CalSTRS, regular U.S. mail, and email to approximately 250,000 CalSTRS members and beneficiaries.
EIC08-9 Volume 24 Issue 9
Secure Employer Web Site Third-Party Vendor Access
Security of our members’ data is of paramount concern to CalSTRS. The Secure Employer Web site (SEW) not only improves employer reporting processes but also ensures confidentiality of member data though encryption, authentication and secure communication tools.
EIC08-8 Volume 24 Issue 8
Update on CalSTRS 403bComply
CalSTRS 403bComply provides employers assistance with compliance of comprehensive IRS 403(b) regulations that become effective January 1, 2009.
EIC08-7 Volume 24 Issue 7
Service as Elected Officer of Employee Organization
The purpose of this circular is to inform employers of the provisions of California Education Code section 22711 which outlines reporting requirements for CalSTRS members elected to serve as elected officers of employee organizations.
EIC08-6 Volume 24 Issue 6
Secure Employer Web Site Administration & Security
The security of our member data is of paramount concern to CalSTRS. The Secure Employer Web site (SEW) provides additional security, but the successful protection of personal information also requires diligence on the part of both CalSTRS and employers.
EIC08-5 Volume 24 Issue 5
Effects of Reduction of Funds to Schools
Due to budget constraints, some school districts may be considering furloughs, salary reductions and retirement incentives. Following is information about the potential effects of furloughs, salary reductions, and retirements to employers and CalSTRS members.
EIC08-4 Volume 24 Issue 4
Online Source Variance Reports
With the availability of online reports through the Secure Employer Website (SEW), starting with fiscal year 2008-2009, CalSTRS will no longer be mailing hard copies of Source Variance Reports.
EIC08-3 Volume 24 Issue 3
Reduced Workload Program
The purpose of this circular is to alert employers to a change to Education Code Section 22713 enacted by Chapter 323, Statutes of 2007 (Assembly Bill 757) to clarify provisions of the Reduced Workload Program.
EIC08-2 Volume 24 Issue 2
Changes to the Reporting Process
CalSTRS announces some important changes to the employer reporting process. Some of these changes were introduced in the Employer Information Circular, Volume 23; Issue 11, dated October 11, 2007.
EIC08-1 Volume 24 Issue 1
Webcast on Final 403(b) Regulations
If you missed CalSTRS’ webinar on December 4, 2007, which included an overview of the new Internal Revenue Service (IRS) 403(b) regulations, you have another opportunity to take part in a webcast on January 22, 2008 from 10:00 to 11:30 a.m. PST.
EIC07-16 Volume 23 Issue 16
Pension Plan Limits For Tax Year 2008
The purpose of this circular is to alert employers that the Internal Revenue Service (IRS) has announced the pension plan limits for tax year 2008. The following limits apply to benefits paid and compensation attributable to the Defined Benefit (DB), the Defined Benefit Supplement (DBS), and the Cash Balance (CB) Benefit Programs.
EIC07-15 Volume 23 Issue 15
Introducing CalSTRS 403bComply Compliance & Administration Solutions
CalSTRS, your trusted pension system, is here to help you successfully comply with the new Internal Revenue Services (IRS) 403(b) regulations. 403bComply is a new program that offers a low-cost, high quality solution for employers facing comprehensive IRS regulations.
EIC07-14 Volume 23 Issue 14
Verification for Employer-Approved Leaves of Absence
The purpose of this circular is to inform employers of the availability of a new form titled Verification For Employers-Approved Leaves (SC-1553 attached), which will be used to provide verification for the employer-approved leaves eligible for service credit purchase by CalSTRS members.
EIC07-13 Volume 23 Issue 13
Exchange and Sojourn Teachers
This circular is provided to address a request from employers on information and guidance concerning “exchange” or “sojourn” teachers.
EIC07-12 Volume 23 Issue 12
Transmittal of Payroll Deductions for CalSTRS Pension2 Plan (403(b) and 457)
The purpose of this circular is to inform employers that the California State Teachers’ Retirement System (CalSTRS) Pension2, our 403(b) (formerly known as the Voluntary Investment Program) and 457 Plan, has changed addresses for remittance of employees’ voluntary deductions and contribution detail.
EIC07-11 Volume 23 Issue 11
Secure Employer Web Site
On May 7, 2007 the Secure Employer Web (SEW) site was rolled out to the County Offices of Education (COE) and districts that report directly (as a report source) to CalSTRS. The next release for the web site is planned for implementation in October 2007.
EIC07-10 Volume 23 Issue 10
New IRS Regulations Regarding 403(b) Plans "90-24" Transfers
The purpose of this circular is to inform employers about the final 403(b) regulations on information sharing requirements and the change to the rules for “90-24 Transfers” in particular.
EIC07-9 Volume 23 Issue 9
Voluntary Investment Program Changes
The purpose of this circular is to inform employers that CalSTRS Voluntary Investment Program (VIP) is undergoing several changes.
EIC07-8 Volume 23 Issue 8
Remuneration Paid for the Principal Purpose of Enhancing a Member's Benefit
The purpose of this circular is to remind employers that pursuant to Section 22119.2 of the Education Code, any salary or other remuneration determined by the Teachers’ Retirement Board to have been paid for the principal purpose of enhancing a member’s benefits shall not be credited to the Defined Benefit (DB) Program. Instead, that compensation will be credited to the Defined Benefit Supplement (DBS) Program.
EIC07-7 Volume 23 Issue 7
Medicare Premium Payment Program Extended
Chapter 1032, Statues of 2000 (Senate Bill 1435—Johnston) established the California State Teachers’ Retirement System (CalSTRS) Medicare Premium Payment (MPP) Program effective January 1, 2001. Under this program CalSTRS pays for Medicare Part A (hospital) premiums for eligible Defined Benefit (DB) Program members who do not otherwise qualify for Medicare through prior employment or their spouse. CalSTRS does not pay the premiums of family members or beneficiaries.
EIC07-6 Volume 23 Issue 6
Secure Employer Web Site
CalSTRS is implementing a new web site, Secure Employer Web Site, which will change the way you submit your files and receive reports from CalSTRS. The Secure Employer Web Site will be available on May 7, 2007 to County Offices of Education and any districts that are currently reporting directly (as a Report Source) to CalSTRS.
EIC07-5 Volume 23 Issue 5
Employer Invoicing Improvements for Purchases of Benefit Enhancements
The purpose of this circular is to introduce upcoming improvements to employer invoices for retirement benefit enhancement purchases, such as Excess Sick Leave, One Year Final Compensation for classroom teachers with less than 25 years of service credit, and Retirement Incentive (previously known as Golden Handshake) programs. Detailed information will be distributed in subsequent employer directives.
EIC07-4 Volume 23 Issue 4
Unfunded Contribution Lines
The purpose of this circular is to inform the County Offices of Education, School Districts, Community College Districts, Charter Schools or other employing agencies, who report creditable compensation for an employee, of the legal requirements to deduct and remit the required employee and employer contributions to the system.
EIC07-3 Volume 23 Issue 3
Employer Verification for the FMLA and CFRA
The purpose of this circular is to inform employers of the verification requirement for the Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA) as it pertains to the purchase of permissive service credit.
EIC07-2 Volume 23 Issue 2
Billing Statement Format Change for Member Service Credit Purchases
The purpose of this circular is to inform the County Offices of Education, School Districts, Community Colleges and Charter Schools (Employers) of the CalSTRS Billing Statement AR 1481 format changes implemented as of December 22, 2006 (previously identified as Form V0898). This Billing Statement affects employers who participate in the payroll deduction program for member purchases of permissive and redeposit service credit.
EIC07-1 Volume 23 Issue 1
New IRS Regulations Regarding 403(b) Plans
The purpose of this circular is to inform employers about the comprehensive IRS 403(b) regulations that will become effective January 1, 2008, and CalSTRS’ offer to assist with administration of the regulations.
EIC06-12 Volume 22 Issue 12
REAP Security Changes
The purpose of this circular is to provide information to County Offices of Education, School Districts, Community Colleges and Charter Schools regarding their access to the Remote Employer Access Program (REAP) and CalSTRS’ continued efforts to improve information security.
EIC06-11 Volume 22 Issue 11
Pension Plan Limits for Tax Year 2007
The purpose of this circular is to alert employers that the Internal Revenue Service (IRS) has announced the pension plan limits for tax year 2007. The following limits apply to benefits paid and compensation attributable to the Defined Benefit (DB), the Defined Benefit Supplement (DBS), and the Cash Balance (CB) Benefit Programs.
EIC06-10 Volume 22 Issue 10
Closing Prior-Year Variances
On August 9, 2006, CalSTRS distributed Employer Information Circular-Volume 22; Issue 8 discussing changes for the employer remittance and variance processes in the 2006/07 fiscal year. This Employer Information Circular-Volume 22; Issue 10 provides further clarification regarding the closing of fiscal year variances and any existing prior-year variances.
EIC06-5 Volume 22 Issue 5
Member Data Confidentiality
EIC05-7 Volume 21 Issue 7
Pension Plan Limits for Tax Year 2006
EIC05-2 Volume 21 Issue 2
Recently Enacted Legislation
EIC04-7 Volume 20 Issue 7
Pension Plan Limits for Tax Year 2005
EIC04-5 Volume 20 Issue 5
Reporting Charter Schools to CalSTRS
EIC04-2 Volume 20 Issue 2
2004 Teachers' Retirement Law Changes
EIC04-1 Volume 20 Issue 1
Retirement Incentive Program CORRECTION
EIC03-12 Volume 19 Issue 12
Pension Plan Limits For Tax Year 2004
EIC03-11 Volume 19 Issue 11
Consolidation of Benefits
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EIC03-9 Volume 19 Issue 9
CAlSTRS Retirement Incentive Programs
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EIC03-8 Volume 19 Issue 8
Transmittal of Payroll Deductions for CalSTRS Voluntary Investment Program (403(b))
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EIC03-7 Volume 19 Issue 7
Changes to Creditable Compensation Increase the Impact of Reporting Errors on Benefits and Account Balances for CalSTRS Members
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EIC03-6 Volume 19 Issue 6
Reporting Unused Sick Leave - What is Basic Sick Leave? What is Excessive Sick Leave?
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EIC03-5 Volume 19 Issue 5
(Revised) Impact of Staff Furloughs or Salary Reductions on CalSTRS Members
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EIC03-4 Volume 19 Issue 4
Data Transmittal of Payroll Deductions for Voluntary and Mandatory Receivables
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EIC03-3 Volume 19 Issue 3
Clarification of Changes to Creditable Service
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EIC03-2 Volume 19 Issue 2
Full-Time Equivalent Agreement Required for Part-Time Community College Instructors
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EIC03-1 Volume 19 Issue 1
New Requirements for the Reduced Workload Program
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EIC02-7 Volume 18 Issue 7
2003 CalSTRS Employer Institute
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EIC02-5 Volume 18 Issue 5
2002 Golden Handshake Program
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EIC02-4 Volume 18 Issue 4
Member Contributions Paid by the Employer
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EIC01-10 Volume 17 Issue 10
2002 CalSTRS/Employer Institute
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EIC01-9 Volume 17 Issue 9
Full-Time Equivalent(FTE)
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EIC01-8 Volume 17 Issue 8
New Pension Plan Limits for Tax Year 2002
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EIC01-7 Volume 17 Issue 7
Creditable Compensation
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EIC01-6 Volume 17 Issue 6
Medicare Benefits Program
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EIC01-5 Volume 17 Issue 5
National Board Certification Award, Senate Bill 1666
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EIC01-4 Volume 17 Issue 4
Creditable Compensation
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EIC01-3 Volume 17 Issue 3
IRS Establishes Pension Plan Limits for Tax Year 2001
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EIC01-2 Volume 17 Issue 2
AB 820 and Partial Redeposits
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EIC01-1 Volume 17 Issue 1
START Database Conversion Project
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EIC00-4 Volume 16 Issue 4
2001 CalSTRS/Employer Institute
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EIC00-3 Volume 16 Issue 3
START Project
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EIC00-2 Volume 16 Issue 2
Due Dates
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EIC00-1 Volume 16 Issue 1
Reduced Workload Program
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EIC99-8 Volume 15 Issue 8
2000 CalSTRS/Employer Institute
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Sacramento, CA 95851-0275
EIC99-7 Volume 15 Issue 7
CalSTRS/CalPERS Election Requirements
The purpose of this circular is to remind employers of the requirements of a CalSTRS/CalPERS election of membership as authorized by Sections 22508 and 22508.5 of the Education Code.
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Sacramento, CA 95851-0275
EIC98-5 Volume 14 Issue 5
Staff Development Days
Senate Bill 1193 (Peace) was recently enacted as Chapter 313. This bill authorizes the Superintendent of Public Instruction to provide a staff development allowance of $270 per day for up to three days for each certificated teacher who participates in staff development on instructional methods. Similar provisions are included for charter schools.
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EIC98-3 Volume 14 Issue 3
Golden Handshake Program to Sunset
The legislative proposal to extend the Golden Handshake law sunset date of December 31, 1998, established by Education Code ß22714(a), did not pass in the 1997-98 legislative session.
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Sacramento, CA 95851
EIC98-2 Volume 14 Issue 2
Permissive Election of STRS Membership Defined Benefit Plan
The purpose of this circular is to inform employers of the amendment of the Permissive Election of STRS Membership Defined Benefit Plan Form (EO 350), and to notify employers of the revision of the EO 350 form to include the employer’s certification, “Notification of Right to Elect STRS Membership” pursuant to Education Code section 22455.5. The revised form will be identified as the “Permissive Election and Acknowled-ment of Receipt of STRS Defined Benefit Plan Membership Information (MR 350)”.
P.O. Box 15275
Sacramento, CA 95851
EIC98-1 Volume 14 Issue 1
Board of Governors of the California Community Colleges
The purpose of this circular is to inform employers of SB 227 (Chapter 838, Statutes of 1997). This legislation amended existing Sections 22509, 22801, and 22803, of, and added Section 22508.5 to the Education Code, and added Section 20309 to the Government Code, relating to community colleges. SB 227 applies to changes in employment effective on or after January 1, 1998.
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Sacramento, CA 95851
EIC96-7 Volume 12 Issue 7
1997 STRS Employer Institute
The purpose of this circular is to inform you that the State Teachers’ Retirement System (STRS) will be presenting two Employer Institutes in the Spring of 1997. These will be the two Institutes held this year. The Southern California Institute will be held at the San Diego Marriott Mission Valley, 8757 Rio San Diego Drive, San Diego, CA 92108 on April 10 and 11, 1997. The Northern California Institute will be held at the DoubleTree Hotel – Santa Rosa, 3555 Round Barn Boulevard, Santa Rosa, CA 95403 on May 22 and 23, 1997.
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EIC96-6 Volume 12 Issue 6
Proposed Legislation (AB1068): Exemption from Post-Retirement Earnings Limit for Class Size Reduction Program
The State Teachers’ Retirement System (STRS) is working with the Legislature and the Department of Education in pursuing emergency legislation that would allow STRS to waive the earnings limitation for members who retired for service and are hired to fill vacancies created by the Class Size Reduction Program. The effective period for this legislation would be from July 1, 1996 through July 1, 1999.
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EIC96-5 Volume 12 Issue 5
Determination of Base Service Days for unused Sick Leave Credit: Minimum Standards for Full-Time Service and Compensation (AB 1122)
Administrative Directive 96-02 outlined the minimum standards for full-time service and compensation as provided in Education Code Section 22138.5, effective July 1, 1996. This section establishes appropriate minimum standards for full-time employment for various classes of employees in kindergarten through grade 12 and community college for the purpose of determining compensation earnable for final compensation and service credit.
PO Box 15275
Sacramento, CA 95851
EIC96-4 Volume 12 Issue 4
Contribution Remittance Report (C-118) New FAX Option
The State Teachers’ Retirement System (STRS) now offers two choices for the submission of the C-118: the mail option or the FAX option. STRS strongly supports the use of the FAX option for submitting the C-118.
PO Box 15275
Sacramento, CA 95851
EIC96-3 Volume 12 Issue 3
Golden Handshake Enhanced Benefit Program Billing Provisions
New Payment Alternative Offered
Administrative Directive 94-05 outlined the employer payment requirements for the Golden Handshake Enhanced Benefit program. Employers may choose from two plans for making payment for their participants, as stated in the directive:
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Sacramento, CA 95851
EIC96-2 Volume 12 Issue 2
Treatment of Independent Contractors for Retirement Purposes
This circular is intended to provide some preliminary information regarding the treatment of independent contractors for retirement purposes as a result of AB-948 which was enacted by the Legislature during the 1995 legislative session. An Administrative Directive (AD) will be issued in the near future to provide employers with a more detailed discussion of the implementation issues.
The most significant implementation issues of which employers should be aware include the following:
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EIC96-1 Volume 12 Issue 1
Changes to the Education Code Affecting the State Teachers' Retirement System (STRS) Enacted in the 1995 Portion of the 1995/96 Legislative Session
This information circular has been prepared to inform you of changes to the Teachers’ Retirement Law (TRL) sections of the Education Code. These changes, which affect STRS, resulted from legislation enacted in the 1995 portion of the 1995-96 Legislative Session and are effective on January 1, 1996, unless another date is specified. (If greater detail on a bill is required, please refer to the specific bill, as chaptered.)
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Sacramento, CA 95851