Sometimes educators ask if they can refund the contributions they made to their CalSTRS Defined Benefit Program account.

While it's possible to apply for a refund, it may not be the best for your long-term financial well-being. If you take a refund, you forfeit all rights to CalSTRS benefits, which includes your survivor and disability benefits. Unless you roll over your account funds into a qualified tax-deferred plan there are tax consequences as well.

And if you return to a CalSTRS-covered position, you'll be able to buy back your forfeited service credit but you'll have to pay interest which increases the cost over time.