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Payment calendarCheck mailed June 27Direct deposit July 1

Interest rates

CalSTRS must assess penalties and interest on employers for late reports and late or insufficient contributions to the Defined Benefit, Defined Benefit Supplement and Cash Balance Benefit programs. The interest is assessed at the regular interest rate.

TypeRate for fiscal year 2023–24Rate for fiscal year 2022–23
Regular interest rate7.00%7.00%
Credited interest rate: Defined Benefit Program3.49%0.43%
Minimum interest rate: Cash Balance Benefit Program3.35%2.09%
Minimum interest rate: Defined Benefit Supplement Program3.49%2.09%
Interest rate for late remittance contributions7.00%7.00%
Penalty rate for late or unacceptable monthly reports7.00%7.00%

Regular interest rate

Regular interest rate means an interest rate that is equal to the actuarially assumed rate of return on investments on assets of the Defined Benefit Program and is adopted annually by the board as a plan amendment with respect to the Defined Benefit Program.

The regular interest rate is used by the Defined Benefit Program to charge interest on:

  • Previously refunded retirement contributions when a member elects to redeposit those contributions.
  • Installment payments for the redeposit of contributions or purchase of additional service credit.

This rate is also used to charge employers interest on delinquent contributions and for reporting penalties.

If there is a delay in the initial allowance payment, CalSTRS pays the benefit recipient interest on the allowance payment at the regular interest rate.

Credited interest rate

The credited interest rate is the interest that is credited to members' Defined Benefit accumulated retirement contributions for service performed after June 30, 1935, excluding all accumulated contributions while being paid an allowance. The credited interest rate is adopted annually by the board as a plan amendment with respect to the Defined Benefit Program.

Minimum interest rate

The minimum interest rate is the rate used to credit interest to participant and member account balances with respect to the Cash Balance Benefit and Defined Benefit Supplement programs, respectively. The minimum interest rate for both the Cash Balance Benefit and Defined Benefit Supplement programs is adopted annually by the board as a plan amendment.