STRS

BENEFITS

STRS

Forms:
medicare.payment.authorization.pdf
Bulletin.Spring2004.pdf
disability.info.pdf
med.condition.pdf
app.disability.benefits.pdf
hardship.withdrawal.app.pdf
med.care.part.A.pdf
benificiary.designation.info.pdf
address.change.request.pdf
direct.deposit.auth.pdf
spc.powers.attorney.pdf
service.retirement.app.pdf

The State Teachers’ Retirement System (STRS) was established by law to provide retirement benefits to employees whose work activities include teaching, vocational or guidance counseling, services related to school curriculum and a variety of administrative duties.

As a "defined benefit plan," your benefits are specified by the plan and not based upon accumulated contributions in your account.

The Teachers’ Retirement Fund is a special trust fund established by law that holds the STRS Defined Benefit Plan assets. The assets come from employee contributions, employer contributions and state of California contributions and appropriations. The Fund’s investments create a stream of income to add to those assets.

Membership
Mandatory or elective membership is determined by the amount of time you work. For full-time and other designated positions, membership is mandatory. Check STRS "Member Handbook" for additional information.

Contributions
Members contribute 8% of their creditable compensation into their STRS account. STRS members are not subject to F.I.C.A. (Social Security) tax. However, STRS members hired after April 1, 1986 are required to pay 1.45% of wages towards Medicare tax. At the end of each fiscal year, interest is credited to the accumulated contributions and interest in each member’s account at the "credited interest rate". The District also contributes 8.25% of each employee’s creditable compensation; however, contributions are not credited to individual member accounts. Employer contributions help fund the benefits payable to members and their beneficiaries.

Service Credit
Service credit is the accumulated period of time, in years and partial years, during which you receive creditable compensation for service as a member. Annual Statements are distributed to all members each fall and is one of your most important STRS records. Make sure you examine your statement carefully for accuracy and report any discrepancies immediately for correction. Also, you may be eligible to purchase service credit for past employment, or an approved leave of absence, for which STRS retirement contributions were not made. Additional service will be granted for any unused sick leave; however, sick leave credit cannot be used to meet eligibility requirements for service retirement.

Retirement
The earliest age at which you can retire for service with a monthly benefit is age 50 under the "30 and Out" alternative. Early retirement is available beginning at age 55 providing you have at least five years of credited service. Your retirement allowance is calculated using the following formula:

Years of Service X Age Factor (2% at age 60) X Final Compensation = Retirement Allowance (Unmodified)
The age factor is the percent of pay to which you are entitled for each year of service credit. This percentage is determined by your age on the last day of the month in which your retirement is effective. Final compensation is the highest average annual compensation earnable by a member during any period of three consecutive years of paid employment covered by STRS.

Disability
As a member of the STRS Defined Benefit Plan, you have disability protection under of STRS disability benefit programs. If you are unable to work because of illness or injury and meet eligibility requirements, you have be entitled to disability benefits until you recover. Check "Member Handbook" for additional information.

Termination/Refund
Your STRS member contributions to the Defined Benefit Plan, plus interest, are refundable upon termination from all employment to perform creditable service in any California public school. However, a refund of your contributions terminates your STRS membership, and you will not be eligible for any benefits, including a life-long monthly retirement benefit, from STRS. Partial refunds are not permitted; employer and state contributions are not refundable. If you withdraw your contributions and interest before age 59 ½, you may be subject to income tax and a 10% federal excise tax. See "Member Handbook" for important information regarding refunds.

Additional Information
Consult the "Member Handbook" for additional information including the following: