The CalSTRS retirement plan is mandatory for public school teachers. A portion of a teacher’s gross salary is paid into CalSTRS on a monthly basis, which essentially reduces the teacher’s immediate taxable income. CalSTRS then invests these contributions into the Teacher’s Retirement Funds. Incidentally, CalSTRS pays no taxes on the income it receives from these invests because it is a Defined Benefit Pension Plan. That means the plan promises to pay a specified amount to each person retiring after a set number of service years. In addition to a member’s own contributions, the employer and the State also contribute to the system on the member’s behalf.

There are retirement benefit options that an employee can choose from:

• Member Only
• 100% Beneficiary Option
• 75% Beneficiary Option
• 50% Beneficiary Option
• Compound Option

To be eligible for the CalPERS School Member benefit retirement formula, you must be employed in a classified position within the jurisdiction of a school employer. Service retirement is a lifetime benefit that is derived from the benefit formula. You may apply for a service retirement when you have five years of CalPERS service and meet the age requirement. If you were hired prior to January 1, 2013 you must be age 50. If you were hired on or after January 1, 2013, you must be at least age 52.

There are retirement benefit options that an employee can choose from:

• Unmodified Allowance
• Return of Remaining Contributions Option 1
• 100% Beneficiary Option 2
• 100% Beneficiary Option 2 with Benefit Allowance Increase
• 50% Beneficiary Option 3
• 50% Beneficiary Option with Benefit Allowance Increase
• Flexible Beneficiary Option 4

Let TDS help you in determining what your pension will look like at the time of your retirement.

When you retire, your pension will not be 100% of the income you’re making now. The retirement income gap is the amount that is missing between what your pension pays (and other resources) and the amount you will need to live on.

STRS/PERS + Savings + Social Security (if applicable) – Expenses = Income Gap

TDS offers free audits of your supplemental retirement plans. During the audit process, we review the following items:

• If you have not contributed, do you understand your district’s (403(b) /457(b) /ROTH) plans and all investment options available?
• If you have contributed, do your deductions match the amount received by the investment provider?
• Are your contributions being submitted to the correct account?
• Is the investment selected performing as expected? Are there any unexpected fees associated with your account?
• If you have borrowed funds, is your repayment schedule in compliance?