My Retirement System Todays Objectives Understand the Cal

My Retirement System

Today’s Objectives Ø Ø Understand the Cal. STRS hybrid system Know what benefits Cal. STRS offers Realize the importance of supplemental savings Take advantage of available resources

When was Cal. STRS established? 1850 1913 1932 1935 The California State Teachers’ Retirement System has been serving California’s educators for more than 100 years.

Section 1: About Cal. STRS

Cal. STRS Membership Our Mission: Securing the financial future and sustaining the trust of California’s educators Our Vision: Your Reward – a secure retirement Our Reward – getting you there Section 1

Cal. STRS Membership Full-Time Employee Part-Time Employee Mandatory Cal. STRS Membership Choose Cal. STRS Choose Another Program Section 1 Learn more about membership and benefits in the Welcome to Cal. STRS booklet.

Cal. STRS. com Learn about us and benefits Download forms and publications Access calculators and watch videos Section 1 Explore Cal. STRS. com

Cal. STRS. com Section 1

my. Cal. STRS Register and update your communication preferences at my. Cal. STRS. com. Section 1 View and update account information Submit forms and messages Access Retirement Progress Report

Retirement Progress Report Membership and Benefit Information Service Credit and Account Balances Employer Reporting Section 1 Review your report each fall and contact your employer about any discrepancies.

What type of retirement plan is Cal. STRS? Defined Benefit Ø Guaranteed benefit based on a formula Cash Balance Ø Guaranteed benefit based on contributions and credits Defined Contribution Ø Unguaranteed benefit based on account balance, including losses Section 1

Cal. STRS Hybrid System Section 1 Membership includes: Ø Defined Benefit Program Ø Defined Benefit Supplement Program Voluntary: Ø Cal. STRS Pension 2

Section 2: Contributions and Service

Two Benefit Structures Cal. STRS 2% at 60 Ø First hired before January 1, 2013 Cal. STRS 2% at 62 Ø First hired on or after January 1, 2013 Section 2 Verify your benefit structure on your Retirement Progress Report or your my. Cal. STRS account.

Contributions Member Defined Benefit Account Employer and State Teachers’ Retirement Fund Section 2 View your Defined Benefit account balance on my. Cal. STRS.

Service Credit Track your service credit balance each year on your Retirement Progress Report. Section 2 Full Time Work 75% Contribute Time 50% Time Accrue 1. 000 0. 750 0. 50

Extra-Pay Assignments 8% Member Contribution 8% Employer Contribution Section 2 View your Defined Benefit Supplement account balance on my. Cal. STRS. Watch the Defined Benefit Supplement video series on Cal. STRS. com/videos. Defined Benefit Supplement Account *9% for 2% at 62 members

Section 3: Social Security Rules

Section 3 True False I contribute to Social Security for my Cal. STRS-covered employment. Consider investing the 6. 2% you would have contributed to Social Security to a supplemental savings account instead.

Two Social Security Rules Windfall Elimination Provision Ø May reduce but cannot eliminate your earned Social Security benefit Government Pension Offset Ø Reduces and may eliminate your spousal or widow/widower Social Security benefit Section 3 Learn more at ssa. gov.

Section 4: Retirement Benefits

What types of benefits does Cal. STRS offer? Retirement Benefits Disability Benefits Survivor Benefits Health Benefits Section 4 Check with your employer about health benefit coverage in retirement.

Service Retirement Eligibility Minimum Requirements Ø Age 55 with five years of service credit Early Retirement Ø Age 50 with 30 years of service credit (Cal. STRS 2% at 60 only) Concurrent Retirement Ø Age 55 with fewer than five years of service credit if retiring for service concurrently from certain other retirement systems Section 4 See the Member Handbook for more information.

Your Retirement Formula Review the Understanding the Formula fact sheet and video. Estimate your benefit using the Retirement Benefits Calculator on Cal. STRS. com. Service Credit Age Factor Section 4 Ø Time worked and contributed Ø Percentage based on age at retirement Ø Highest average annual Final compensation earnable for Compensation 36 consecutive months Monthly Retirement Benefit

Section 5: Supplemental Savings

On average, the Cal. STRS retirement benefit replaces about half of a new member’s salary. You’ll need to close any gap between your retirement income goal and your retirement benefit with savings and investments.

Will your benefit be enough? Section 5 Estimate your expenses in retirement. Research supplemental savings plans and other income sources. Build your DBS account.

Supplemental Savings Section 5

Cal. STRS Pension 2 Section 5 ØTax-deferred retirement savings ØLow and transparent costs Ø No commissions, load fees or surrender charges Ø Flexible investment options

Supplemental Savings Section 5 403(b) Roth 403(b) Learn more about the advantages of Cal. STRS Pension 2 at Pension 2. com or call 888 -394 -2060. Roth 457(b) Check out your employer’s plans at 403 b. Compare. com. 457(b)

Section 6: Learn More

My Retirement Workshops Sign up for workshops Cal. STRS. com/ workshops. Section 6 My Retirement Benefits Ø Understand your benefits and the importance of supplemental savings My Retirement Decisions Ø Understand your retirement options and timelines

Financial Awareness Workshops Save for Your Future Ø Budgeting basics, savings and investing, credit and debt Plan for Your Future Ø Retirement lifestyle, expenses, income and obstacles Protect Your Future Ø Retirement distributions, maximizing and protecting your income Section 6 Visit Cal. STRS. com/ financial-awareness to learn more.

Questions? Cal. STRS. com my. Cal. STRS 800 -228 -5453 Monday – Friday 7 a. m. to 6 p. m. Call us or send an online message using your my. Cal. STRS account.

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