Retirement Benefits to Charter Schools
CalSTRS Offers Retirement Benefits to Charter Schools
Charter schools have the unique ability to decide whether to provide CalSTRS benefits and services to their employees.
CalSTRS offers the following benefits to members:
- Defined Benefit Program
- Defined Benefit Supplement Program
- Pension2®, a voluntary supplemental savings plan
Criteria for a Charter School to Elect CalSTRS
During the initial writing of a charter petition, the school can elect to participate in CalSTRS to provide retirement benefits for their employees.
Charter schools must meet the following criteria to participate in CalSTRS retirement programs:
- Recognized as a public charter by the California Department of Education
- Elect participation in CalSTRS and enroll eligible employees (members)
- Provide documentation to CalSTRS confirming participation before reporting contributions
- Report contributions to CalSTRS via school district or county office of education
California Education Code Law for Charter Schools
- California Education Code Section 47605: Gives a charter school the option of participating in CalSTRS, CalPERS or Social Security
- California Education Code Section 47611: Informs charter schools that participation in CalSTRS means that all parts of Teachers’ Retirement Law apply
- California Education Code Section 47611.3: Requires school districts of County Offices of Education to report contributions and data to CalSTRS on behalf of charter schools
Required Documents from Charter Schools
Prior to accepting contributions, CalSTRS requires the following documents:
- A copy of the school’s charter petition indicating the election or participation in CalSTRS
- If the charter school chooses to collect pre-tax contributions, a completed Employer Paid Member Contributions Resolution is required.
For more information, email us at email@example.com.
Client Advisory Committee Charter School Update
During the April 2017 board meeting, a presentation on charter schools was shared with the Client Advisory Committee. Data presented was as of year-end June 30, 2016 and was based on charter schools who have elected CalSTRS. Below is the presentation and additional handout that was shared.
Teachers’ Retirement Board Charter Schools Report
During the June 2017 board meeting, a presentation on charter schools was shared with the Teachers’ Retirement Board. Below are the presentation and the full report.