CalSTRS Defined Benefit

CalSTRS Defined Benefit

Regular District academic employees, academic MSC, and associate faculty with established DB membership at the time of hire contribute to the California State Teachers' Retirement System Defined Benefit Program (CalSTRS DB). An associate faculty non-member may elect membership at any time. Only activities identified as creditable service are subject to Defined Benefit Program coverage and count toward years of service for retirement purposes. These activities include teaching, vocational or guidance counseling, services related to school curriculum and a variety of administrative duties.

A member is considered "vested" with a right to a lifetime retirement benefit when five years of service credit are accumulated under this program. Retirement can be as early as age 50 providing at least 30 years of service credit have been accumulated. Retirement at age 55 requires only five years of creditable service. The formula for calculating the lifetime retirement benefit is: Service Credit x Age Factor x Final Compensation.

A Classic STRS DB member contributes 10.25% of creditable earnings. Contributions are on a pre-tax basis which defers taxation until a later date. The district contributes 16.280% of the creditable compensation paid to a member. A STRS DB PEPRA employee contributes 10.205% of creditable earnings. The district contributes 16.280% of the creditable compensation paid to a member. Employer contributions are not credited to individual member accounts, but are deposited in the Teachers' Retirement Fund to help fund the benefits payable to all members and their beneficiaries. If more than one year of service credit is earned in a school year, both member and district contributions go into a Defined Benefit Supplement Program account (DBS). The DBS account provides a member additional retirement income.

Go to www.CalSTRS.com for comprehensive information on the Defined Benefit Program including DBS accounts, disability retirement, service credit enhancements, pre-election retirement option, on-line retirement calculators, or forms.