CalSTRS Hybrid Retirement System

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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.