If you were a member between January 1, 2001 and December 31, 2010, you contributed 8 percent of creditable compensation earned to the CalSTRS Defined Benefit Program. Six percent of creditable compensation earned went to the CalSTRS Defined Benefit Program and 2 percent to the Defined Benefit Supplement Program account during that time period.

For example, if your monthly compensation for CalSTRS-covered service is $3,000, you contributed $240 per month to CalSTRS; $60 was allocated to your Defined Benefit Supplement Program account.

Since July 1, 2002, member and employer contributions on compensation earned for creditable service in excess of one year of service in a school year, and other compensation for CalSTRS 2% at 60 members, are credited to the Defined Benefit Supplement Program. This provision has no sunset date. See Defined Benefit Supplement Program.

Starting July 2014, if you earn more than one year of service credit in a school year, you are eligible for a return of your member contributions made in excess of the 8 percent contribution rate on Defined Benefit Supplement compensation. CalSTRS will return excess contributions to employers once a year, typically in October. Your employer is responsible for returning your excess contributions to you. Any excess contributions will be reported on your annual Retirement Progress Report.

Your Defined Benefit Supplement Program account was established January 1, 2001, or when you were employed in CalSTRS-covered employment, whichever was later. The 2 percent of contributions to your Defined Benefit Supplement Program account terminated January 1, 2011, and are no longer allocated to your Defined Benefit Supplement Program account.

Other types of compensation, including service in excess of one year, will continue to be paid into your Defined Benefit Supplement Program account. See Defined Benefit Supplement Program.

Your money earns interest at a guaranteed rate that is set annually by the Teachers’ Retirement Board.

See Defined Benefit Supplement Program or Contact CalSTRS.

No. As an active member, you are automatically enrolled in the Defined Benefit Supplement Program.

No.

No. You must withdraw all of the funds from your Defined Benefit Supplement Program account when you terminate CalSTRS-covered employment or receive a retirement or disability benefit from your Defined Benefit Program account.

No.

No. Your Defined Benefit Supplement Program beneficiary will be the same as your Defined Benefit Program designated beneficiary.

No.

Your Defined Benefit Program and Defined Benefit Supplement Program funds are separate and distinct accounts. However, both are subject to California community property laws and distribution by court order.

Yes, when the funds in your Defined Benefit Supplement Program account equal or exceed $3,500. You can find your Defined Benefit Supplement Program account balance on your Retirement Progress Report, available on myCalSTRS.

See the Member Handbook for more information.

Yes.

Yes. These funds may be subject to state and federal taxes unless you roll the account balance over to another qualified plan. You may wish to consult your tax advisor.

At retirement you will elect how to receive your Defined Benefit Supplement Program funds. If you retire with a balance in your Defined Benefit Supplement Program account of less than $3,500, you must take a lump-sum distribution. If the balance in your Defined Benefit Supplement Program account is $3,500 or more, you must choose one of the following:

• A lump-sum distribution
• An annuity
• A combination of lump-sum distribution and annuity

Provided that the amount in your Defined Benefit Supplement Program account is at least $3,500 you can elect to receive either a lump-sum distribution or a monthly annuity. If the amount in your Defined Benefit Supplement Program account is less than $3,500, you must take a lump-sum distribution.

Choices for a Member-Only Benefit

The Member-Only Benefit offers the following payment choices:

• Lump-Sum Payment
• Member-Only Annuity
• Period-Certain Annuity
• Combination of Lump-Sum Payment and Annuity

Choices for a Modified Benefit

If you elect the Modified Benefit, you have the following payment choices:

• Lump-Sum Payment
• 100% Beneficiary Annuity
• 75% Beneficiary Annuity
• 50% Beneficiary Annuity
• Period-Certain Annuity
• Combination of Lump-Sum Payment and Annuity

Additional information about these choices is available in the Member Handbook.

A lifetime monthly payment. Any balance remaining upon your death will be paid to your one-time death benefit recipients.

A monthly payment for your lifetime and the lifetime of your annuity beneficiary. One hundred percent of your monthly annuity amount will be paid to your annuity beneficiary upon your death. If your beneficiary dies before you, your benefit will rise to the Member-Only Annuity amount.

A monthly payment for your lifetime and the lifetime of your annuity beneficiary. Seventy-five percent of your monthly annuity amount will be paid to your annuity beneficiary upon your death. If your beneficiary dies before you, your benefit will rise to the Member-Only Annuity amount.

A monthly payment for your lifetime and the lifetime of your annuity beneficiary. Fifty percent of your monthly annuity amount will be paid to your annuity beneficiary upon your death. If your beneficiary dies before you, your benefit will rise to the Member-Only Annuity amount.

A monthly payment made for any number of years from three to 10. The amount you receive is based on the number of years over which the annuity is paid—the fewer the years, the higher the amount payable. If you die before the annuity period ends, the remaining payments will be paid to your one-time death benefit recipients.

A lump-sum payment and one of the annuities. To elect this choice, you must have $3,500 or more remaining in your Defined Benefit Supplement account after your lump-sum payment.

Yes, when your Defined Benefit Supplement Program account balance is equal to or exceeds $3,500. 

At the time you file a service retirement or disability benefit application, you will also make your Defined Benefit Supplement Program distribution choice. You must either choose a lump-sum distribution or select an annuity or a combination of both.

If you leave CalSTRS-covered employment and withdraw the funds from your Defined Benefit Program account, you are required to take the Defined Benefit Supplement Program termination benefit which will close out your Defined Benefit Supplement Program account.

If you leave CalSTRS-covered employment and do not withdraw funds from your Defined Benefit Program account, you may leave your Defined Benefit Supplement Program funds on account. Your funds will continue to accrue interest as long as they remain on deposit.

If after termination of employment you have not performed creditable service for six months and you have received a refund of your Defined Benefit Program account, CalSTRS will refund your Defined Benefit Supplement Program account.

No. Although you can redeposit previously refunded funds into your Defined Benefit Program account, funds from your Defined Benefit Supplement Program account cannot be redeposited.

No. If you return to membership and Defined Benefit Supplement Program contributions are received within the six-month period, your application for a Defined Benefit Supplement Program termination benefit will be canceled.

Provided that the amount in your Defined Benefit Supplement Program account is at least $3,500, named beneficiaries can elect to receive either a lump-sum distribution or a monthly annuity. If the amount in your Defined Benefit Supplement Program account is less than $3,500, named beneficiaries must take a lump-sum distribution.

If you elected a lump-sum distribution from your Defined Benefit Supplement Program account at the time of your retirement or disability, no further Defined Benefit Supplement Program benefit is payable. If you elected a monthly annuity, any further distribution of funds is based on the type of annuity selected.

Any balance remaining upon your death will be paid to your one-time death benefit recipients.

One hundred percent of your monthly annuity amount will be paid to your annuity beneficiary upon your death.

Seventy-five percent of your monthly annuity amount will be paid to your annuity beneficiary upon your death.

Fifty percent of your monthly annuity amount will be paid to your annuity beneficiary upon your death.

If you die before the annuity period ends, the remaining payments will be paid to your one-time death benefit recipients.

Yes, as long as your employer does not tax your retirement contributions when your salary is paid.

Yes.