General Information

Retirement After Reinstatement

What is retirement after reinstatement?

Some members choose to return to CalSTRS-covered employment after having been retired. Returning to active membership following a service retirement is called “reinstatement.” The subsequent retirement, called a multiple retirement, is calculated differently from the way the initial benefit was calculated. The calculation depends on the number of years of service credit the member earned after reinstating to active membership.

You may re-retire as early as one day after your reinstatement date. However, you must keep the same retirement option and beneficiaries—or Member-Only Benefit—if you re-retire within a year of reinstating.

How will my new service retirement be calculated?

The way that your new retirement benefit will be calculated depends on the number of years of service credit you earned after your reinstatement.

Retiring with fewer than two years of service credit after reinstatement

If you have less than two years additional service, the new benefit will be calculated by adding the old benefit amount, including annual benefit adjustment, and the current amount using the current factors: the service credit you earned since your reinstatement multiplied by your current final compensation multiplied by the age factor for the age you are at the time of your later retirement.

Whatever new enhancements you qualify for will be used in the calculation of the new amount. If you qualified for a longevity bonus at the time of your first retirement, you can increase the amount of your longevity bonus by $100 for each full year of service credit you earn up to the maximum longevity bonus of $400 reached at 32 or more years of service credit.

Example:

Suppose you originally retired at age 60 with 29 years of service credit (including unused sick leave) and with $3,000 final compensation. Your prior benefit would have been $1,740. Two years later, you reinstated and you worked 1.5 years after reinstatement at $5,000 per month.

Scenario – Less than two years additional service credit
29.000 prior service credit years multiplied by 2 percent prior age factor multiplied by $3,000 prior final compensation
Prior Member-Only Benefit Allowance $1,740.00
2% Annual Benefit Adjustment + $69.60
Subtotal $1,809.60
Plus current 1.50 service credit multiplied by 2.40% age factor multiplied by $5,000 final compensation
Current Member-Only Benefit Allowance +$180.00
Total Member-Only Benefit Allowance (prior + current) $1,989.60

Note that you qualified for the one-year final compensation and the career factor enhancements, and those were used in the calculation of the current benefit amount.

Retiring with two or more years of service credit after reinstatement

If you have earned two or more years of service credit since reinstatement, your entire benefit is recalculated. The age factor from your prior benefit is recalculated to the age factor based on your current age minus the time you spent in retirement, and new calculation uses your current final compensation for all the years of service credit. The amount for the current service, calculated using current factors, is added to the recalculated former benefit amount.

Whatever new enhancements you qualify for will be used in the calculation of the new amount. If you qualified for a longevity bonus at the time of your first retirement, you can increase the amount of your longevity bonus by $100 for each full year of service credit you earn up to the maximum longevity bonus of $400 reached at 32 or more years of service credit.

Example:

Suppose you originally retired at age 60 with 29 years of service credit (including unused sick leave) and with $3,000 final compensation. Your prior benefit would have been $1,740. Two years later, you reinstated and you worked 2 years after reinstatement at $5,000 per month.

Scenario – Two or more years additional service credit
29.000 prior service credit multiplied by 2.40 percent recalculated age factor multiplied by $5,000 current final compensation
Prior Member-Only Benefit Allowance $3,480.00
Plus current 2.0 service credit multiplied by 2.40% age factor multiplied by $5,000 final compensation
Current Member-Only Benefit Allowance +$240.00
Total Member-Only Benefit Allowance (prior + current) $3,720.00

How do I get an estimate of my retirement benefits?

You can submit a request for an estimate either by writing to CalSTRS or by calling CalSTRS at 800-228-5453.

I am retired and considering reinstating. If I currently have an option, will it apply to my subsequent retirement?

It depends. If you elected an option, upon your reinstatement, your selection will become a preretirement election of an option, but reinstated members must keep the same option and option beneficiaries for one year after reinstatement.

If you remain reinstated for a year or more, you may change your option and option beneficiary. However, you may be subject to an assessment to your monthly retirement benefit when you re-retire.

For more information on how you may be impacted in this scenario, see a CalSTRS benefits specialist.

How will reinstating affect my eligibility for CalSTRS to continue paying the Medicare Part A premium?

You will forfeit the benefit.

How do I submit a reinstatement request?

In order to reinstate to active member status, you can download and complete a Reinstatement After Retirement form.

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