Understand your benefits
CalSTRS provides retirement, disability and survivor benefits for full-time and part-time California public school educators through a hybrid retirement system consisting of its Defined Benefit, Defined Benefit Supplement and Cash Balance Benefit programs, and a voluntary defined contribution plan called CalSTRS Pension2.
Defined Benefit Program benefit structure
CalSTRS Defined Benefit Program is a traditional defined benefit plan that provides retirement, survivor and disability benefits. Your Defined Benefit retirement benefit is based on a formula set by law using your age, service credit and final compensation.
| If you were first hired… | You are covered under the following benefit structure: | Your eligibility for retirement is: |
|---|---|---|
| On or before December 31, 2012 | CalSTRS 2% at 60 | Age 50 with at least 30 years of service credit or age 55 with five years of service credit—or under special circumstances* |
| On or after January 1, 2013 | CalSTRS 2% at 62 | Age 55 with at least five years of service—or under special circumstances* |
*Special circumstances of concurrent retirement with certain other California public retirement systems.
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.