Teachers’ Retirement Law Changes May Affect Retirement Benefits

What's New

If you are under age 60 and return to CalSTRS-covered employment immediately after retirement, your benefit may be reduced beginning July 1, 2010, as result of changes to the Teachers’ Retirement Law.

The Teachers’ Retirement Law now conforms to Federal law that prohibits the distribution of retirement benefits before either:

  • The CalSTRS normal retirement age of 60, or
  • A separation from service.

The dollar-for-dollar deduction equals the amount you earn during whichever time period is shorter:

  • The period from your retirement effective date until your 60th birthday, or
  • The six months following your retirement effective date.

The requirement for this deduction will begin July 1, 2010, regardless of your retirement effective date. There are no exemptions from this requirement.