California Teachers Retirement System

Jul
07

Filed Under California Teachers Retirement |

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The California teachers retirement system is called CALSTRS and is a huge reason to teach because it offers benefits like few other retirement plans.

CALSTRS is simply the best retirement plan ever offered, by anyone. You can start teaching at age 50. Retire at age 56 and receive about $2,500 - $3,000 per month for the rest of your life! That’s incredible in a crazy sort of way.

The California State Teachers’ Retirement System (CALSTRS) was established in 1913 for California public school educators. CalSTRS is administered by the 12-member Teachers’ Retirement Board, which includes representatives from K–12 and community college education, retired members and the public.

Mandatory Enrollment

If you are a full-time California public school K–12 teacher or community college instructor you are required to belong to CalSTRS. Eight percent of your salary is automatically withheld from your paycheck. Your employer contributes an amount equal to 8.25 percent of your salary to help pay benefits.

Defined Benefit Program

The thing that makes this program so great is called the defined benefit program. A defined benefit program guarantees a lifetime benefit to you (and to your survivors, if you choose), regardless of the amount of funds you have contributed to your account. So you just keep receiving money month after month even if it exceeds the amount you put in.

Vesting

This eligibility, known as vesting, occurs when you have five years of service credit. You can

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