Senate Bill 349 Brings Changes to Effective Date of Service Retirement Benefit and More
Senate Bill 349 (SB 349), effective January 1, 2012, makes a number of changes to the Teachers’ Retirement Law.
Five measures in the law directly affect member benefits:
- Effective date of service retirement benefit
Members can now backdate their service retirement benefit effective date to as early as the day following their last day of compensation, but no earlier than January 1, 2012.
- Deadline for Service Retirement Application changes
Members now have 30 days from the date their first benefit payment is issued to make changes to or cancel their Service Retirement Application. This includes changes to options elected at retirement and preretirement option elections.
- Postretirement earnings limit for Cash Balance annuitants
Retired Cash Balance annuitants who are under age 60 and return to work in a CalSTRS-covered position are subject to a 180-day separation-from-service requirement.
- Defined Benefit retiree Cash Balance contributions
Retired Defined Benefit members who return to work in a CalSTRS-covered position cannot contribute to the Cash Balance Benefit Program. All earnings are subject to the postretirement earnings limit.
- New eligibility restrictions for Reduced Benefit Election
Members are not eligible for the Reduced Benefit Election if they received a service retirement or disability benefit from CalSTRS, or if they are applying for service retirement while their disability application is being evaluated.
Read additional information on how this affects member benefits.