CalSTRS Hybrid Retirement System

CalSTRS administers a hybrid system as part of a comprehensive financial security package for members that includes:

  • Defined Benefit Program – a traditional defined benefit plan

    • Pension based on a formula using age, service and compensation.
    • Member participation is mandatory.
  • Defined Benefit Supplement Program – a cash balance plan
    • Acts like a 401(k), but similar to defined benefit plans with a minimum earnings guarantee.
    • Member participation is mandatory.
    • Fact Sheet: The Basics of a Cash Balance Plan.
  • Pension2 – a defined contribution plan
    • Voluntary retirement savings through 403(b) and 457(b) plans.
    • Participation is optional.