Take the mystery out of CalSTRS and CalPERS retirement benefits (2024)

FAQs

Can I collect CalPERS and CalSTRS at the same time? ›

If you will be receiving a CalSTRS Coverage A disability benefit, you can take a service retirement from CalPERS at the same time if you meet the minimum service retirement age (50 or 52) or at age 60, when your CalSTRS Coverage A disability benefit is changed to a service retirement .

The difference Disability benefits paid by CalSTRS are generally higher than those paid by CalPERS, but CalPERS members also may be eligible for disability benefits under Social Security. In addition, CalSTRS benefits increase if there are dependent children; CalPERS provides no coverage for dependent children.

A refund is available to any CalSTRS member upon terminating all CalSTRS-covered employment. Can I take a partial refund or borrow from my account? No. California law does not allow you to take a partial refund or borrow against your accumulated contributions and interest on account with CalSTRS.

If you leave all CalPERS-covered employment you can choose to withdraw your contributions plus any accrued interest.

Reciprocity is an agreement among California public retirement systems that allows you to move between these systems without losing some valuable retirement benefits. In establishing reciprocity, you become a member of both systems and are subject to the benefits, rights, and laws of each system.

The average annual CalPERS pension for all retirees who retired with a service retirement is $42,516, which breaks down to more than $3,500 per month. Overall, 61.6% of all CalPERS service retirees receive $3,500 a month or less, while only 6.4% receive more than $9,000 per month.

CalSTRS is your retirement plan. We're here to help you secure a strong financial future. After you retire from your career in education, you'll receive monthly income from us for the rest of your life.

As a California public school educator, you do not contribute to Social Security, so you will not receive a Social Security benefit for your CalSTRS-covered employment when you retire.

Considering a career change? If you no longer work in a CalSTRS-covered position, you can leave your money in CalSTRS until you reach 70½ or request a refund.

Despite falling short of meeting its 7% investment return assumption, CalSTRS remains ahead of schedule in its goal of the Defined Benefit Program reaching full funding by 2046. This is due to the exceptional 27.2% investment return earned by CalSTRS In fiscal year 2020–21.

What is the income limit for CalSTRS after retirement? ›

Postretirement earnings limit

If you work while receiving a CalSTRS retirement benefit, you're subject to fiscal year earnings limitations: July 1, 2022–June 30, 2023: $49,746. July 1, 2023–June 30, 2024: $50,655. July 1, 2024–June 30, 2025: $74,733.

If you return to work within 180-calendar days of your most recent retirement date or have earnings in excess of the annual postretirement earnings limit in a school year, your CalSTRS retirement benefit will be reduced dollar for dollar by any compensation earned, up to the benefit payable during that period.

If you move to another California public employer within 6 months, you retain classic member status and are under the benefits that were in place prior to January 1, 2013. New Member If you're a “New” member hired after January 1, 2013, you fall into one of three categories: 1.

Early distributions from a qualified retirement plan are subject to an early withdrawal penalty tax of 10% federal and 2 1/2% State tax on the taxable portion of the distribution PLUS any income tax due on the distribution if it is received prior to age 59 1/2, unless an exception applies.

CalPERS is a 401(a) Defined Benefit Plan. This means that your benefit amount is determined by a formula and not what you contribute to the plan. Once you're eligible and you retire, your benefit is payable for life. service credit, you still may be eligible to apply for a service retirement.

If you've worked for more than one company long enough to become vested in multiple pension plans, you can receive more than one pension payment. Your employer manages the investment side of funding its pension plan(s), so the employer bears the risk of choosing investments and the risk that the market will decline.

Reciprocity allows you to move from one retirement system to another without losing your benefits. CalPERS' reciprocal agreement with other California public retirement systems can allow you to coordinate your benefits between the two systems when you retire.

As a California teacher, educator, or public employee, you may be wondering what retirement benefits are available to you. The good news is that California educators and public employees are eligible to receive state benefits from the CalSTRS or CalPERS retirement systems and sometimes both.

To be eligible for service retirement, you must have at least five years of CalPERS-credited service and be at least age 50, 52, or 55 depending on your retirement formula . If you have a combination of classic and PEPRA service, you may be eligible to retire at age 50 .