Once you retire, you can only change your option beneficiary
under the following four circumstances:
- If your option beneficiary dies;
- If your option beneficiary is your spouse and you divorce;
- If your option beneficiary is someone other than your
spouse and you would now like to name your spouse;
- If you get married after you retire and previously had
not chosen an option and would like to name your new spouse.
To change an option or your option beneficiary, you will need to complete the
necessary forms and submit them to CalSTRS.
For more information about changing your option beneficiary, see
section 6 of the Member Handbook.
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Yes, your monthly allowance will be modified to reflect your
option selection and your choice of option beneficiary. The
option beneficiary change will take effect six months after
your request is received by CalSTRS. At the end of the six-month
waiting period, your monthly allowance will be reduced to
reflect your age and the age of your new option beneficiary.
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You may change your option beneficiary regardless of which option
you originally selected.
To change your option beneficiary, you must fill out the
Change of Option Beneficiary After Retirement Due to Death
form.
If you are changing your option beneficiary to someone other than
your current spouse, you will need to have your spouse sign your
Change of Option Beneficiary After Retirement Due to Death
form.
If you are unable to obtain your spouse’s signature, then you will
need to fill out a
Justification For Non-Signature of Spouse or Registered Domestic
Partner form.
These forms can be obtained by downloading them from the
CalSTRS Web site or by
calling the Contact Center at
800-228-5453. Once CalSTRS receives the completed form(s), an estimate
of your new monthly retirement allowance will be sent to you.
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All allowances are affected differently based on individual
criteria. Here are two examples:
Example 1:
Peter retired in 1992 and elected option 6 to cover his spouse,
Jill. Unfortunately, Jill died before Peter and as a result,
his allowance increased to the unmodified level. Peter remarried
and now wishes to name his new spouse, Linda, as his option
6 beneficiary. At the time the new beneficiary election takes
effect, Peter will be age 67 and Linda will be age 64.
| |
|
|
|
| Allowance: |
$2,000 |
$ 1,576 |
-$424 |
| COLA: |
$ 460 |
$ 362 |
-$ 98 |
If Peter dies, Linda will continue to receive $1,938 for
the rest of her lifetime. If Linda dies before Peter, his
allowance will return to $2,460, per month.
Example 2:
Terry retired in 1979 and elected option 7 to cover her spouse,
Robert. Unfortunately, Robert died before Terry and as a result,
her allowance increased to the unmodified level. Terry remarried
and now wishes to name her new spouse, Mike, as her option
beneficiary. At the time the new beneficiary election takes
effect, Terry will be age 75 and Mike will be age 71.
| |
|
|
|
| Allowance: |
$ 900 |
$ 769 |
-$131 |
| COLA: |
$ 450 |
$ 384 |
-$ 66 |
| Minimum Guarantee: |
$ 250 |
$ 214 |
- $36 |
If Terry dies, Mike will continue to receive $684 for the
rest of his lifetime. If Mike dies before Terry, her allowance
will return to $1,600, per month.
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You will need to write to CalSTRS stating you wish to cancel
your application for a Change of Option Beneficiary After
Retirement. Your request must be received before the effective
date of the new option beneficiary election.
Write to: CalSTRS
Service Retirement Division MS60
P.O. Box 15275
Sacramento, CA 95851-0275
Please remember to always include your Social Security number
and daytime phone number when writing CalSTRS.
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No, if you are receiving a benefit under option 6 or 7, you
are not allowed to change options. However, you are allowed
to select a new option beneficiary if the current beneficiary
has died. The option beneficiary will take effect six months
after your request is received by CalSTRS. At the end of the
six-month waiting period, your monthly allowance will be reduced
to reflect your age and the age of your new option beneficiary.
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Yes, the quarterly supplemental payment will be recalculated
based on your new benefit amount. Since your allowance will
decrease in order to insure a lifetime monthly allowance to
your new option beneficiary, your quarterly supplemental payments
will also decrease.
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A death beneficiary is chosen by the member to receive a one-time
lump-sum death payment upon the member’s death. The amount of the
lump-sum payment varies, depending on whether you have Coverage A or B,
and if the death occurs before or after retirement.
An option beneficiary is chosen by the member to receive a lifetime
monthly allowance upon the member’s death. The member’s retirement
allowance is actuarially reduced to reflect the age of the member and
the beneficiary when the option is selected; this reduction is to insure
a lifetime monthly allowance to the beneficiary.
The same individual may be designated the beneficiary of both the
lump-sum payment and the monthly allowance.
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