Your Retirement Guide 2016 Retirement Guide and Instructions for Defined Benefit Members CalSTRS Your Retirement Guide 2016 i . This booklet contains information for a CalSTRS Defined Benefit service retirement. If you think you may be eligible for a disability benefit, see the brochure, Introduction to CalSTRS Disability Benefits. If you are applying for a disability benefit and wish to apply for a service retirement benefit while your application for disability benefits is being evaluated, complete the Disability Benefits Application, available in Your Disability Benefits Guide. If you are a Cash Balance Benefit Program participant, complete the appropriate Cash Balance Benefit application.

You will find forms and publications at CalSTRS.com. . my retirement Ready to Retire? Complete and submit your Service Retirement Application online at myCalSTRS.com. Or complete your application online, then print and mail or fax it to us. When you complete your application online using myCalSTRS: •• You’ll receive step-by-step guidance to complete your application correctly. •• Your member-specific information is auto-filled, saving you time. •• Your application is processed automatically, for a faster turnaround. •• You’ll receive immediate email confirmation when we receive your application and after it has been processed. •• You’ll receive prompt emails if we need additional information to process your application. Need Help Completing Your Application? Attend a Retirement Application Roundtable. For dates and locations, or to register, call 800-228-5453 and select option 3. Need to Make Changes or Cancel Your Retirement After You Submit Your Application? Complete the Service Retirement Application Change Request form, available on CalSTRS.com/forms. We must receive your form no later than 30 calendar days from the date your first benefit payment is issued. Manage Your Beneficiary Information. View and update your one-time death benefit recipient information. Also view your option beneficiary information. Not yet registered for myCalSTRS? View the self-paced, interactive registration guide on myCalSTRS.com. .

As a result of the California Public Employees’ Pension Reform Act of 2013, CalSTRS has two benefit structures: • CalSTRS 2% at 60: Members first hired on or before December 31, 2012. • CalSTRS 2% at 62: Members first hired on or after January 1, 2013. Members under the CalSTRS 2% at 60 benefit structure also include those who: • Were a CalSTRS member before 2013, terminated their membership and then  returned to active membership on or after January 1, 2013. • Performed CalSTRS creditable activities that were subject to coverage under  a different retirement system, including Social Security, on or before December 31, 2012. • Were members of a concurrent retirement system on or before  December 31, 2012, and who performed activities under that system within six months of becoming a CalSTRS member. See the Member Handbook 2016 at CalSTRS.com to learn more. The information in this booklet is for members under the CalSTRS 2% at 60 benefit structure. If you are a CalSTRS 2% at 62 member and plan to retire under the special circumstances of concurrent retirement, contact us for more information. . Contents The Benefit of a Lifetime 5 Your CalSTRS Retirement Timeline Step 1: Plan and Research Your Retirement Decisions 7 Planning Checklist Benefits Planning Services Your Retirement Decisions Other Considerations Retired Educator Organizations CalSTRS Benefits Planning Offices Step 2: Complete and Submit Your Forms Online 25 Forms for Service Retirement Instructions Overview Service Retirement Application Checklist Step 3: CalSTRS’ Role in Your Retirement Process 29 CalSTRS Pension2 30 Glossary 31 CalSTRS is governed by the Teachers’ Retirement Law, available at CalSTRS.com, and other sections of state law. The information in this booklet is general. If there is a conflict between the law and this booklet, the law prevails. . Your CalSTRS Retirement Timeline This timeline of events from the year before your retirement up to your first benefit payment will give you an idea of what to do and when. Your specific timeline, however, may differ.   Activate your myCalSTRS account, if you haven’t already done so. Start at myCalSTRS.com, select Register Now and follow the five-step process. You can complete and submit your Service Retirement Application, sign up for direct deposit, update your address and more using myCalSTRS.  Prepare for retirement early to avoid delays that may occur during the peak months of April–July.   egister for a retirement planning workshop at CalSTRS.com/workshops or a benefits planning R session, described at CalSTRS.com/benefits-planning, by calling 800-228-5453 (select option 3). What to Do When Step 1 Activate your myCalSTRS account, if you haven’t already. Plan and research your retirement decisions (pages 7–21). Attend a CalSTRS Retirement Check-Up workshop or a CalSTRS and Your Retirement benefits planning session. 10–12 months before your retirement date. Meet with a CalSTRS benefits specialist. Check to see if pending or new legislation may affect your benefits or influence the timing of your retirement. Step 2 Complete and submit your Service Retirement Application and other forms online using myCalSTRS.

Step-by-step guidance ensures you fill out the application completely, resulting in faster processing. Or complete the paper version, available at CalSTRS.com/forms. Use the Service Retirement Application checklist on pages 27–28. No earlier than six months before your requested retirement date. If you submitted your Service Retirement Application and want to make a change or cancel your retirement, we must receive your Service Retirement Application Change Request form (SR 1328) no later than 30 days from the date your first service retirement benefit payment is issued. Step 3 Check your myCalSTRS account, if you submitted your application online. You’ll receive an immediate email confirming your application was received. Review your award letter, which includes the amount of your monthly benefit, how your monthly benefit was calculated and the total amount of your contributions and interest (page 29). Look for your first benefit payment (page 29). 4 CalSTRS Your Retirement Guide 2016 Within 45 days of your retirement date or the date your application is processed, whichever is later. There could be changes to your monthly benefit amount for several months beyond your retirement date as we receive and process additional information from your employer. . The Benefit of a Lifetime You’re approaching one of life’s most important passages—retirement from your working career. Your smooth transition to this new stage of your life requires thoughtful planning. You can count on CalSTRS to help you every step of the way. In addition to this guide, we offer workshops and benefits planning to help you understand the decisions you’ll need to make. Visit CalSTRS.com/benefits-planning or contact your local office (see listing on page 23) for more information. Your Retirement Plan As a CalSTRS member, you participate in a hybrid retirement system that includes traditional defined benefit (Defined Benefit Program), cash balance (Defined Benefit Supplement Program) and voluntary defined contribution (CalSTRS Pension2®) plans.

You also have survivor and disability benefits. Your traditional defined benefit pension is based on a formula set by law, not on how much you contributed: Service Credit x Age Factor x Final Compensation = Your Retirement Benefit Your monthly retirement benefit is guaranteed for your life and the lives of your beneficiaries, if you elect this option. It may be your greatest asset. This booklet takes you through the application process. Inside you’ll find tips and checklists to help you plan and prepare for your retirement. The information in this booklet is for members under the CalSTRS 2% at 60 benefit structure.

If you are a CalSTRS 2% at 62 member (you were first hired on or after January 1, 2013) and plan to retire under the special circumstances of concurrent retirement, contact us for more information. You must submit your Service Retirement Application to CalSTRS before you’ll receive a CalSTRS retirement benefit. If you are unable to submit your application before your retirement date, you can backdate your retirement to any day following your last day of work, vacation or compensated approved leave for your CalSTRS-covered position, but no earlier than January 1, 2012. Service credit purchases must be paid in full before your retirement date. CalSTRS Your Retirement Guide 2016 5 .

Planning Checklist To help you plan for your CalSTRS retirement. Read this guide and the retirement planning sections of the Member Handbook. You must submit the Service Retirement Application to receive a retirement benefit. Go online to myCalSTRS.com to activate your myCalSTRS account if you haven’t already, so you can complete and submit your application online for faster processing. Check to see if pending or new legislation may affect your benefits or influence the timing of your retirement. Sources include your legislative representative, your union representative or CalSTRS.com/legislation. Take advantage of benefits planning services. Visit CalSTRS.com/benefits-planning or contact your local office to find the right session for you and your career stage. Estimate your monthly benefit using the online calculator at CalSTRS.com/calculators or the benefit estimate worksheet in the Member Handbook, available at CalSTRS.com. Consider purchasing additional service credit to increase your benefit if you did not purchase it earlier in your career. See the booklet, Purchase Additional Service Credit, available at CalSTRS.com/publications.

If you are in the process of purchasing service credit, contact us at least 90 days before you plan to retire. Your purchase must be paid in full before your retirement date. Consider making a preretirement election of an option to provide a lifetime monthly benefit to someone if you should die before retirement. The Preretirement Election of an Option form is on myCalSTRS and at CalSTRS.com/forms. 6 CalSTRS Your Retirement Guide 2016 Gather clear, unaltered photocopies of the following documents: If you are electing an option beneficiary: • Birth certificate or other acceptable verifications of birth date, such as a state-issued ID, birth record, a passport photo ID page or certain military IDs, for your option beneficiary. • Marriage certificate or other proof of a name change, if your option beneficiary’s name is different from the name on his or her birth certificate. If you elected an option beneficiary before retirement, you may still need to verify your beneficiary’s date of birth. If a portion of your CalSTRS benefits was awarded to another party: • A complete court-filed copy of your community property settlement documents. For more information, see the Community Property Guide at CalSTRS.com/publications. Make sure your one-time death benefit recipient information is current.

You can find your recipient information on your myCalSTRS account. If you haven’t named a recipient, you can do so on myCalSTRS or using the Recipient Designation form, available on CalSTRS.com/forms. Notify your employer that you intend to retire from CalSTRS. You’ll also need to resign from your CalSTRS–covered position, so ask about any forms your employer may require.

Also let your employer know if you plan to set up a health insurance deduction from your CalSTRS benefit payments. Complete Section 1 of the Express Benefit Report form, then submit it to your employer to complete the employer sections even if you don’t have unused sick leave. Your employer must report your last day of work, vacation or compensated approved leave on this form. . Step 1:  lan and Research Your P Retirement Decisions With retirement in sight, you have choices to explore and decisions to make before completing your Service Retirement Application. Plan to attend a CalSTRS Retirement Check-Up workshop or a CalSTRS and Your Retirement planning session conducted by CalSTRS benefits specialists, and research information on your own to help make the best decisions for your retirement. You can also turn to CalSTRS.com, the Member Handbook and your most recent Retirement Progress Report. Your Retirement Progress Report, available on myCalSTRS, includes your annual statement of accounts and retirement benefit estimates, if you’re age 45 or older. For more information, visit CalSTRS.com/retirement-progress-report. Unfamiliar with a term? See the glossary on page 31. Workshops and Member Education Videos Register for the Retirement Check-Up workshop at CalSTRS.com/workshops. In addition, find a series of three-minute member education videos at CalSTRS.com/videos.

Topics include Beneficiary Options, Defined Benefit Supplement: Choices for Receiving Funds and Tax Considerations, and CalSTRS Pension2. Questions to Answer Benefits Planning Services Before making your retirement decisions, you will need to answer these questions: Our benefits specialists can help you plan your CalSTRS retirement by providing estimates and explaining how different choices will affect your benefit. You can talk to a benefits specialist in person or over the phone, or attend a benefits planning session: • Am I eligible to retire? •  ow much will my benefit be each month? H •  o I want to provide a monthly benefit to D someone after I die? •  ow do I want my Defined Benefit H Supplement paid? Retiring before the end of the school year? Talk to a CalSTRS benefits specialist before retiring mid-year to determine how it could affect your retirement benefit. • Prepare for your retirement early. Schedule a CalSTRS and Your Retirement session six to nine months before your retirement date.

It’s easier to schedule during the nonpeak months of August–March. For dates and locations, contact your local office (see listing on page 23). • Get help completing your Service Retirement Application at a Retirement Application Roundtable. For dates and locations, call 800-228-5453 and select option 3. See page 11 CalSTRS Your Retirement Guide 2016 7 .

Your Retirement Decisions You’ll need to make decisions regarding both your Defined Benefit pension and your Defined Benefit Supplement funds. Defined Benefit Retirement If you’re eligible to retire, you’re entitled to a guaranteed, lifetime retirement benefit. Your retirement benefit is based on the following formula, not on your contributions: Service Credit x Age Factor x Final Compensation = Your Retirement Benefit Member-Only Benefit: The Member-Only Benefit does not provide a monthly lifetime benefit to anyone when you die after retirement. It is the highest monthly benefit you can receive in retirement. Modified Benefit: The Modified Benefit provides a monthly lifetime benefit to someone after you die. You’ll need to choose an option and one or more option beneficiaries.

If you elect the Modified Benefit, your monthly retirement benefit will be reduced. Defined Benefit Supplement Account Your Defined Benefit Supplement account provides additional money for retirement. You and your employer’s contributions on service performed in excess of one year are credited to your account, in addition to special limited-term payments and retirement incentives. Your most recent Retirement Progress Report includes an annual statement of your Defined Benefit Supplement account. Defined Benefit Decisions Am I eligible to retire? Your age and service credit are used to determine your eligibility for a CalSTRS retirement benefit.

You’re eligible to retire under the CalSTRS Defined Benefit Program if you are either age 50 and have at least 30 years of service credit, or age 55 and have at least five years of service credit. You can find your CalSTRS service credit on your Retirement Progress Report. If you’re at least age 55 and a member of certain other public retirement systems in California, you may retire with fewer than five years of service credit if you retire for service from both systems at the same time. See page 17 for more information and a list of eligible systems. To increase your service credit, consider redepositing previously refunded Defined Benefit contributions and interest or purchasing permissive service credit. Your purchase must be paid in full before your retirement date. 8 CalSTRS Your Retirement Guide 2016 .

How much will my benefit be each month? Your retirement benefit is based on the formula: Service Credit x Age Factor x Final Compensation If you did not already receive a benefit estimate from one of our benefits specialists, calculate it using the Retirement Benefits Calculator at CalSTRS.com/calculators or the benefit estimate worksheet in the Member Handbook. If your retirement date is not the first of the month, your first benefit payment will be prorated. Your benefit is subject to state and federal income tax withholding. The amount you receive from your benefit will also depend on other factors, such as deductions for health insurance. Service Credit Service credit is the number of school years, including partial years, you have worked and contributed to CalSTRS: •  ou earn service credit every day you work or Y are on paid leave. •  ou can earn up to 1.00 year of service credit Y in one school year. If you work less than full time, your service credit for the year may be less than 1.00. If you perform additional duties, your CalSTRS contributions and most of your employer’s contributions on service performed in excess of one year are credited to your Defined Benefit Supplement account. Age Factor Age factor is a percentage based on your age at retirement.

The age factor is set at 2 percent at age 60. It decreases if you retire before age 60 and increases up to 2.4 percent at age 63. If you retire with at least 30 years of service credit, a career factor of 0.2 percent will be added to your age factor, up to a maximum combined age and career factor of 2.4 percent. Note: If you backdate your retirement benefit effective date, your monthly benefit may be lower if your age factor changes, though you will receive more benefit payments upfront. Final Compensation Final compensation is your highest average annual compensation earnable during any period of 36 consecutive months.

If you have 25 or more years of service credit at retirement, you qualify for a benefit enhancement, which allows us to use 12 consecutive months of your highest average compensation earnable rather than 36 consecutive months. Compensation Earnable Your annual compensation earnable for a school year is based on the gross monthly pay you could have earned for creditable service performed full time. If you retire before the end of the school year or if there are months you did not perform creditable service, your final compensation may be affected. Retirement Incentives Check to see if your employer offers a retirement incentive that may increase your service credit. Ask about application deadlines and retirement dates to qualify. If your employer offers a retirement incentive through CalSTRS and you qualify, it cannot be included in your benefit calculation until we receive the Express Benefit Report form and all required documentation from your last employer. If you receive additional service credit under the CalSTRS Retirement Incentive Program, you’ll lose the additional service credit if you take any job, including substitute teaching, within five years of retirement for the employer that offered the incentive. In addition, if you receive a retirement incentive and subsequently reinstate to active membership, you will lose the additional service credit granted under the incentive. Neither service credit from a retirement incentive nor the purchase of nonqualified service credit can be used to qualify for the career factor. CalSTRS Your Retirement Guide 2016 9 .

Career Factor If you retire with at least 30 years of qualified service credit, a bonus of 0.2 percent will be added to your age factor, up to the maximum combined age and career factor of 2.4 percent. When you retire, up to two-tenths of one year of unused sick leave can count toward qualifying for the career factor. Neither service credit from a retirement incentive nor the purchase of nonqualified service credit can be used to qualify for the career factor. Longevity Bonus If you had at least 30 years of qualified service credit on or before December 31, 2010, you’re eligible for a longevity bonus, which adds a set dollar amount to your monthly retirement benefit. CalSTRS will automatically apply the longevity bonus to your benefit. The amount of the bonus will be based on your total years of qualifying service credit at retirement: Service Credit Longevity Bonus 30 years $200 31 years $300 32 or more years $400 Service credit that is projected while you are receiving a Coverage A disability benefit (disability allowance) does not count toward the longevity bonus. If you have an option beneficiary, your option factor will be applied to your Member-Only Benefit after the longevity bonus is added: (Your Member-Only Benefit + Longevity Bonus) x Option Factor = Your Modified Benefit Sick Leave Additional service credit for unused sick leave will be given at retirement. CalSTRS will convert your unused sick leave to service credit once we receive and process the Express Benefit Report form from your employer. If you work full time, the number of accumulated unused sick leave days will be divided by the number of base service days required to complete the last school year: Accumulated days of unused sick leave Number of base days for full-time service = Service credit granted If you work part time, the base service days are calculated based on the full-time equivalent. Sick leave service credit cannot be used to meet eligibility requirements for service retirement. However, up to two-tenths of one year of unused sick leave may be used to qualify for the career factor, the 25-year threshold for one-year final compensation, and an increased longevity bonus if you qualified for the longevity bonus on or before December 31, 2010. CalSTRS will accept unused sick leave reported on the Express Benefit Report form by each of your employers during the last school year in which you earned creditable compensation if you did not transfer your unused sick leave when you changed jobs.

Contact your employer if you have questions. For retirements effective before January 1, 2013, only your last employer can report unused sick leave by submitting the Express Benefit Report form to CalSTRS. CalSTRS will convert your unused sick leave to service credit at retirement. Each of your employers during the last school year in which you earned creditable compensation may submit an Express Benefit Report form. 10 CalSTRS Your Retirement Guide 2016 . Your employer is required to submit the Express Benefit Report form within 30 days of your retirement date or the date CalSTRS receives your application, whichever is later—even if you don’t have unused sick leave. Mid-Year Retirement If you retire in the middle of the school year, your final compensation may be lower than expected if you received a salary increase toward the end of your career. This is because for a mid-year retirement, unless you have higher salaries earlier in your career, CalSTRS must include the monthly average of your prior year’s compensation earnable as part of your final compensation calculation. The calculation will have more of an effect if you have at least 25 years of service, since your final compensation would be based on a 12-month period. For example, if you have 25 years of service credit, earned $57,000 last year and would have earned $60,000 this year, your final compensation calculation for a January 1 retirement date would be: $57,000 ÷ 12 = $4,750 x 6 months = $28,500 $60,000 ÷ 12 = $5,000 x 6 months = +$30,000 $58,500 $58,500 ÷ 12 = $ 4,875 Your final compensation for your 12 months would be $4,875. Taking on additional assignments at a lower pay rate may also reduce your final compensation if you choose a mid-year retirement. This is because your annual compensation earnable is prorated to your retirement date and is an average of the various pay rates you receive during that period. In addition, a mid-year retirement while working under the Reduced Workload Program will result in ineligibility for the program and may negatively affect your service credit and final compensation. Do I want to provide a monthly benefit to someone after I die? You can choose to provide a lifetime monthly benefit to someone after you die in exchange for a reduced retirement benefit. Your option beneficiary must be a living person or persons—your beneficiary cannot be an estate, charity, trust or other entity. This lifetime monthly benefit is separate from the one-time death benefit (see page 15). Member-Only Benefit If you do not want to provide a monthly benefit to someone after you die—and you didn’t make a preretirement option election­ check the — Member-Only Benefit box on your Service Retirement Application.

You will receive your full retirement benefit. This is the highest monthly benefit possible, and it will continue throughout your lifetime. Benefits will stop when you die.

Any contributions and interest remaining in your account at the time of your death will be paid to your one-time death benefit recipient. Modified Benefit To provide a monthly benefit to someone after you die, check the Modified Benefit box on your Service Retirement Application. You will need to choose an option and designate one or more option beneficiaries. Choosing an option will reduce your monthly benefit for as long as you and your beneficiary are still living. The amount of the reduction depends on the option you choose, your age and the age of your beneficiary.

You can provide a monthly benefit for one beneficiary by electing the 100% Beneficiary Option, the 75% Beneficiary Option or the 50% Beneficiary Option. You may provide for more than one option beneficiary or maintain a portion of your benefit by electing the Compound Option. See the Member Handbook for more information. CalSTRS Your Retirement Guide 2016 11 . If you elect the Compound Option, you must submit the Compound Option Election form along with your Service Retirement Application. You can complete and submit the form online using myCalSTRS or download the form at CalSTRS.com. CalSTRS may ask you to verify your birth date as well as the birth dates of your option beneficiaries. To learn how each option would affect your retirement benefit, use the Retirement Benefit Calculator at CalSTRS.com/calculators or attend a CalSTRS and Your Retirement session to obtain a personalized estimate prepared by a benefits specialist. To change or cancel your option election after you submit your Service Retirement Application, you must submit the Service Retirement Application Change Request form (SR 1328) no later than 30 days from the date your first service retirement benefit payment is issued. You cannot change or cancel your option election after you’re retired and the 30-day deadline has passed except under limited circumstances. See the Member Handbook for details. Option Descriptions You can choose one of four options: •  ame two or more option beneficiaries, with an N option choice for each, and not keep any of your benefit as a Member-Only Benefit. If your beneficiary dies before you, your benefit will be adjusted accordingly. Nonspouse Option Beneficiary Age Rules If you name someone other than your spouse or a former spouse as your option beneficiary, the type of option you may elect depends on your age and the age of your option beneficiary: •  nder the 75% Beneficiary Option, your U nonspouse option beneficiary cannot be more than exactly 19 years younger than you. •  nder the Compound Option, your nonspouse U option beneficiaries cannot be either: »»  ore than exactly 19 years younger than you M under the 75% Beneficiary Option, or »»  ore than exactly 10 years younger than you M under the 100% Beneficiary Option. These federal age restrictions also apply to registered domestic partners. Reinstatement and Option Elections If you are re-retiring within 12 months of your most recent reinstatement date, you may not make changes to your retirement option or beneficiaries. 100% Beneficiary Option provides your option beneficiary with 100 percent of the amount you were receiving. 75% Beneficiary Option provides your option beneficiary with 75 percent of the amount you were receiving. 50% Beneficiary Option provides your option beneficiary with 50 percent of the amount you were receiving. For the 100%, 75% and 50% Beneficiary Options, your benefit will rise to the Member-Only Benefit if your option beneficiary dies before you. The Compound Option provides three choices. You may: •  ame one option beneficiary and keep a portion N of your benefit as a Member-Only Benefit. •  ame two or more option beneficiaries, with N an option choice for each and keep a portion of your benefit as a Member-Only Benefit. 12 CalSTRS Your Retirement Guide 2016 If you elected an option before January 1, 2007, your option may have different rules. Verify your current option on myCalSTRS or by calling us. Canceling Your Retirement or Making Changes to Your Application To make changes to your Service Retirement Application or cancel your service retirement, you must submit the Service Retirement Application Change Request form.

CalSTRS must receive your form within 30 days of the date your first benefit payment is issued. If you cancel your retirement, you must return any retirement benefit payments within 45 days of the payment issue date. . If you are retiring after at least one year has passed since your reinstatement, you may keep your same option or make changes. If you make changes, your monthly retirement benefit will be subject to an assessment that may reduce your benefit for your lifetime. There are two exceptions to this law: If your option beneficiary dies, your option will be canceled automatically and an assessment will apply. For the remainder of the one-year waiting period, you will have the Member-Only Benefit. If you re-retire before the year is over, you will retire with the Member-Only Benefit. If your option beneficiary is your current or former spouse or registered domestic partner and a final decree of dissolution of marriage or judgment of nullity has been entered, or an order of separate maintenance has been made, your option may be changed or canceled in conjunction with the court order or judgment.

In addition, an assessment may apply. Preretirement Election of an Option If you’re eligible to retire or a concurrent member of another California public retirement system (see page 17) age 55 or older, you can make a preretirement election of an option to provide your Comparing the Defined Benefit Options 100% 90% loved ones with a lifetime monthly benefit if you should die before your retirement date. Complete the Preretirement Election of an Option form online using your myCalSTRS account or download the form at CalSTRS.com/forms. If you die before retirement, your beneficiaries will receive a lifetime monthly benefit based on the reduced benefit you would have been paid if you had retired on the date of your death. If you cancel or change your preretirement election of an option before you retire, your monthly retirement benefit will be subject to an assessment that may reduce your benefit for your lifetime. In addition, if your beneficiary dies before you retire, your monthly retirement benefit may be reduced for your lifetime.

If you have questions, contact your local CalSTRS office to schedule a session with a benefits specialist. Note: If you’re a concurrent member, age 55 or older with less than five years of CalSTRS service credit, we will verify your retirement eligibility as of the date of your death. If you’re ineligible for concurrent retirement, your election will be void. This chart compares the Defined Benefit beneficiary options. The examples show reduced retirement benefits for a member, age 60, who designates an option beneficiary, age 57. To find out how each option would affect your retirement benefit, use the Retirement Benefit Calculator at CalSTRS.com/calculators. 80% 70% Member-Only Benefit 60% Member’s benefit if no option beneficiary is elected 50% 40% Modified Benefit 30% 20% Member’s benefit when member and option beneficiary are living during retirement 10% Option beneficiary’s benefit when member dies 0 Member-Only Benefit 100% Beneficiary Option 75% Beneficiary Option 50% Member’s benefit if option beneficiary dies after member retires Beneficiary Option CalSTRS Your Retirement Guide 2016 13 .

Defined Benefit Supplement Decisions How do I want my Defined Benefit Supplement paid? Your most recent Retirement Progress Report shows your Defined Benefit Supplement balance at the end of the last school year. If you have less than $3,500 in your Defined Benefit Supplement account when you retire, you’ll receive the account balance as a lump-sum payment. Your lump-sum payment may be paid directly to you or rolled over to a qualified plan, such as CalSTRS Pension2, if you have at least $200 in your account to roll over. If you have $3,500 or more in your Defined Benefit Supplement account, you can choose a lump-sum payment, an annuity payment or a combination of the two. Your annuity choices depend on whether you elect the Member-Only Benefit or the Modified Benefit for your retirement benefit. The Defined Benefit Supplement Annuity Estimate tables at CalSTRS.com/calculators provide estimates for each type of annuity based on various account balances and ages at retirement. Your Defined Benefit Supplement Annuity Beneficiaries Your Defined Benefit Supplement Lifetime annuity beneficiary is the same person or persons you designate as your Defined Benefit option beneficiary, and the same age restrictions apply (see page 12). Your Defined Benefit Supplement Period-Certain annuity beneficiary is the same person or entity you designate as your one-time death benefit recipient. Defined Benefit Supplement Payment Choices With a Defined Benefit Supplement account balance of $3,500 or more, you have three payment choices: 1. Lump-Sum Payment This is a one-time payment of the total amount in your Defined Benefit Supplement account as either a direct payment or a rollover to a qualified plan, such as CalSTRS Pension2, if you have at least $200 in your account to roll over. 2.

Annuity Payments You can elect to receive your Defined Benefit Supplement funds through a series of monthly payments by electing either a Period-Certain or a Lifetime annuity. The Period-Certain annuity provides a monthly payment made for any number of whole years from three to 10. The monthly amount you receive is based on the number of years over which the annuity is paid—the lower the number of years, the higher the amount you receive. If you die before the annuity period ends, the remaining payments will be paid to your one-time death benefit recipients. A Period-Certain annuity of three to nine years is eligible for rollover to a qualified plan. A PeriodCertain annuity of 10 years is not rollover eligible. The Lifetime Monthly annuity provides a monthly payment for your lifetime (if you elect the Member-Only Benefit for your Defined Benefit account) or your lifetime and the lifetimes of Your Defined Benefit Supplement Lifetime annuity beneficiary is the same person you designate as your Defined Benefit option beneficiary.

Your Defined Benefit Supplement Period-Certain annuity beneficiary is your one-time death benefit recipient. Watch the three Defined Benefit Supplement member education videos at  CalSTRS.com/videos to learn more. 14 CalSTRS Your Retirement Guide 2016 . your beneficiaries (if you elect the Modified Benefit for your Defined Benefit account). Lifetime annuities are not eligible for rollover— they must be paid directly to you. •  f you elect the Member-Only Benefit for your I CalSTRS retirement benefit and would like to receive lifetime monthly payments from your Defined Benefit Supplement account, you must elect the Member-Only Annuity. Any balance remaining in your accounts upon your death will be paid to your one-time death benefit recipient. •  f you elect the Modified Benefit for your I Defined Benefit account and would like to receive lifetime monthly payments from your Defined Benefit Supplement account, you must elect a beneficiary annuity. The amount of your monthly annuity payment depends on the percentage of your payment that you choose to have paid to your beneficiaries upon your death: »»  00% Beneficiary Annuity. All of your 1 monthly annuity amount will be paid monthly to your option beneficiary upon your death. »»  5% Beneficiary Annuity.

Seventy-five 7 percent of your monthly annuity amount will be paid monthly to your option beneficiary upon your death. »»  0% Beneficiary Annuity. Fifty percent of 5 your monthly annuity amount will be paid monthly to your option beneficiary upon your death. •  f you elect the Compound Option for your I Defined Benefit retirement benefit, you may elect to receive your Defined Benefit Supplement as any of the annuities listed here. The annuity you elect will be the same for each of your beneficiaries, and the apportionment of the benefit will be the same as you elect for your Defined Benefit monthly benefit. See page 12 for nonspouse option beneficiary age restrictions. 3.

Combination Lump-Sum and Annuity Payment You can receive a portion of your Defined Benefit Supplement account as a lump-sum payment and the remaining balance as an annuity. To elect this choice, you must have at least $3,500 remaining in your Defined Benefit Supplement account after your lump-sum payment is made. Tax Consequences Defined Benefit Supplement Distributions If you choose to receive your distribution as a lump-sum payment or a Period-Certain annuity of three to nine years paid directly to you, CalSTRS is required to withhold 20 percent for federal income tax from your payments. If you choose to have state tax withholding, we will withhold at 2 percent.

If you do a rollover, your rollover-eligible distributions won’t be taxed at the time of distribution (unless you roll over to a Roth IRA), but when you withdraw your funds. See the Service Retirement Application and Tax Considerations for Rollovers booklet for more information. One-Time Death Benefit Your CalSTRS retirement benefit option beneficiary is different from your one-time death benefit recipient. You can designate a recipient to receive the one-time death benefit online using your myCalSTRS account or by completing the Recipient Designation form, available at CalSTRS.com/forms. Recipients can be living persons or an estate, trust, charity or other entity. If you are an active member at the time of your death, your one-time death benefit recipient will receive the balance in your Defined Benefit Supplement account.

If you do not elect an option beneficiary to receive your CalSTRS retirement benefit, your one-time death benefit recipient may also receive your contributions and interest in your Defined Benefit account. See “Survivor Benefits” in the Member Handbook to learn more. CalSTRS Your Retirement Guide 2016 15 . Other Considerations Sign Up for Direct Deposit Direct deposit gives you the quickest access to your benefit payment. For faster processing, sign up for direct deposit using your myCalSTRS account. Or complete the Direct Deposit Authorization form, available on CalSTRS.com/forms. If you change your bank or want to cancel direct deposit, update your direct deposit information using your myCalSTRS account or by submitting a new form. Your first payment will be deposited into your account within 60 to 90 days after we receive the authorization. To avoid delay in processing your payments, do not close your old account until your first payment is deposited into your new account. When you sign up for direct deposit, you authorize CalSTRS to transmit benefit payments by electronic funds transfer to your account at a U.S.

financial institution. Your current and past benefit payment statements are available on myCalSTRS. If you want to receive statements by mail, you can choose to receive them twice a year—in February, with tax table changes, and in October, with the annual benefit adjustment—or every month. Receive Service Retirement Benefits During Evaluation of Your Disability Benefits Application If you’re eligible to retire and you’re applying for disability benefits, you may receive service retirement benefits during the evaluation of your Disability Benefits Application. Learn more in the Introduction to CalSTRS Disability Benefits brochure, available at CalSTRS.com.

You’ll find the Disability Benefits Application in Your Disability Benefits Guide, also at CalSTRS.com. A CalSTRS benefits specialist can help you understand your disability benefit coverage, provide estimates and assist you with your application. 16 CalSTRS Your Retirement Guide 2016 Return of Excess Member Contributions If you earned compensation for service in excess of one year in the 2015–16 school year, your member contributions made on this service in excess of the 8 percent contribution rate for Defined Benefit Supplement compensation will be returned to you by your employer. Under the 2014 CalSTRS Funding Plan, member contribution rates for the Defined Benefit Program increased beginning July 1, 2014. The member contribution rate for compensation creditable to the Defined Benefit Supplement Program, which includes compensation earned for service performed in excess of one year, is still 8 percent. CalSTRS will return any excess contributions to the employer. We will return excess contributions to your employer in October. The total amount of your excess member contributions will be reported on your Retirement Progress Report for 2015–16, available in early September.

If you service retire on or before September 4, 2016, we will return excess contributions to your employer within three months of retirement. You will not receive a Retirement Progress Report in fall 2016—instead, you’ll find a report of your excess member contributions online on your myCalSTRS account (under the Services tab). Your employer is responsible for returning your excess member contributions to you.

If you have any questions regarding the return of your excess contributions, please contact your employer. Your returned pre-tax member contributions are considered taxable income in the year you receive the funds regardless of when you initially paid the contributions. Community Property Settlements If you divorced or legally separated or terminated your registered domestic partnership while a CalSTRS member, your benefits may be subject to a community property settlement. When a court order specifically requires your benefits to be divided, CalSTRS must review: •  complete court-filed copy of your final court A judgment of dissolution, legal separation or termination of domestic partnership. . •  full copy of any settlement agreement, A including exhibits and attachments. If your documents have not been reviewed by CalSTRS, you may be asked to provide them. Failure to provide the required documents may result in a delay in your benefit without interest. For more information, see the Community Property Guide at CalSTRS.com. Retiring From Another California Public Retirement System If you’re also a member of another public retirement system in California, you must file for retirement separately with each system. If you’re at least age 55, you may retire with fewer than five years of service credit if you retire for service from both systems at the same time. Each retirement system may have different conditions for concurrent retirement. Be sure to research your other system’s requirements. For some systems, if you service retire from CalSTRS and the other system concurrently, your benefits may be based on the highest average annual compensation earnable under any system as long as you do not work under CalSTRS or another system between the dates you retire from each system. Your highest average annual compensation earnable under CalSTRS-covered employment will be used to calculate your CalSTRS benefit if you worked under CalSTRS-covered employment and another public retirement system in the same pay period during the period of service used to calculate your final compensation. Even if your average annual compensation earnable is higher under the other retirement system, we will use only your CalSTRS salary to determine your final compensation. The other public retirement systems in California subject to concurrent membership are: • • • • • C  alifornia Public Employees’ Retirement System U  niversity of California Retirement System S  an Francisco Employees’ Retirement System Legislators’ Retirement System T  he following California county retirement systems enacted under the County Employees Retirement Law of 1937: Alameda Sacramento Contra Costa San Bernardino Fresno San Diego Imperial San Joaquin Kern San Mateo Los Angeles Santa Barbara Marin Sonoma Mendocino Stanislaus Merced Tulare Orange Ventura See the Concurrent Retirement Fact Sheet for more information. Reduced Benefit Election If you’re at least age 55, but under age 60, and have at least five years of service credit, you can apply for retirement under the Reduced Benefit Election.

You’ll receive one-half of your monthly retirement benefit calculated as if you were age 60. The reduced benefit will continue for the same number of months after age 60 that you received benefits before age 60. After that, you’ll receive your normal retirement benefit. You are not eligible for this program if you previously received a service retirement or disability benefit from CalSTRS, or if you are applying for service retirement while your disability application is being evaluated. If you want the Reduced Benefit Election, submit the Reduced Benefit Election form with your Service Retirement Application.

You can complete and submit the form online using myCalSTRS or download the form at CalSTRS.com. The form includes an example to help determine if this option is right for you. Schedule a session with a CalSTRS benefits specialist to make sure you fully understand the program and how it could affect your retirement benefits. CalSTRS Your Retirement Guide 2016 17 . Medicare Premium Payment Program Currently the CalSTRS Medicare Premium Payment Program, which pays Medicare Part A hospital insurance premiums for certain eligible retired members, is not being offered to members with a benefit effective date on or after July 1, 2012. Your most recent retirement date is used to determine your eligibility. Health Insurance Premium Deductions CalSTRS does not provide health or dental insurance coverage for members. However, state law requires that school districts offer retiring CalSTRS members the option to continue their medical and dental insurance at their own cost. Your health insurance premiums may be partially or fully paid by your school district after retirement, depending on your collective bargaining agreement.

Benefits vary from district to district. CalSTRS can deduct health premiums from your monthly retirement benefit and forward them to your health insurance carrier, if your carrier has an agreement with us. If you’re interested in a health insurance deduction, contact your employer’s human resources department. We will set up a deduction for you after we receive the appropriate paperwork from your health insurance provider. To cancel, verify coverage information or change premium amounts, contact your insurance carrier or employer. Medicare Premium Deductions If you’re enrolled in both Medicare Part A and Part B, you may have your Part B premiums deducted from your monthly benefit by submitting the Medicare Payment Authorization form, available at CalSTRS.com/forms, along with a copy of your current unpaid Notice of Medicare Premium Payment Due (Medicare bill). If you’re interested in having your dues deducted from your payments, contact the association (see listing on page 22).

After we receive the appropriate paperwork from the association, we will set up a deduction. To cancel a deduction, you need to contact the association directly. Your Retirement Benefit and Social Security As a member of CalSTRS, you don’t pay into Social Security, so you don’t earn Social Security benefits for your CalSTRS-covered work. If you’re counting on a Social Security benefit through other employment or your spouse, two federal rules—the Windfall Elimination Provision and the Government Pension Offset—may leave you with a smaller Social Security benefit or possibly no benefit at all.

Social Security is a federal program and neither CalSTRS nor the State of California has control over Social Security eligibility requirements, or benefit or offset calculations. Your CalSTRS retirement benefit will not be reduced or eliminated by these two rules. To learn more, contact Social Security at 800-772-1213 or visit socialsecurity.gov where you’ll also find calculators.  the Social Security, CalSTRS and You fact sheet See at CalSTRS.com/publications. Working After Retirement You can continue to receive your full CalSTRS retirement benefit, with no earnings limitations, if you take a job outside of CalSTRS-covered employment, including work in: Dues Deductions A number of associations, including the California Retired Teachers Association, California Teachers Association and Association of California School Administrators, have arranged to have dues deducted from CalSTRS retirement payments. 18 •  rivate industry outside of the California P public school system • Private schools • Public schools outside of California •  niversity of California or California State U University system If you return to work after service retirement in a CalSTRS-covered position, including substitute teaching, within the California public school system as an employee, an independent contractor or an employee of a third party, except under a very CalSTRS Your Retirement Guide 2016 . narrow exception, there are restrictions under state and federal law. You cannot: •  arn any pay without affecting your retirement E benefit if you return to work before a 180-calendar day separation from service. •  arn more than the annual earnings limit E without affecting your CalSTRS retirement benefit. •  ork in a classified position except, under W certain circumstances, as a teacher’s aide. In addition, if you retired under the Retirement Incentive Program, you will lose the ongoing increase in your benefit from the incentive if you take any job, including substitute teaching, within five years of retirement with the employer that offered the incentive. See the Working After Retirement fact sheet at CalSTRS.com/publications. Separation-From-Service Requirement If you return to work in a CalSTRS-covered position, your retirement benefit will be reduced dollar for dollar by any compensation earned, including employer contributions to tax-sheltered annuities and other tax-favored products, during the first 180 calendar days following your most recent retirement date up to your benefit payable during that period. There are no exemptions from the separationfrom-service requirement if you are under normal retirement age or you received a retirement incentive. There is a narrow exemption if you’re over normal retirement age. The requirement may not apply if your appointment is necessary to fill a critically needed position; your employer’s governing body, such as a school board, approves your appointment through a resolution adopted at a public meeting; you did not receive any financial inducement to retire; and your termination of service was not the cause of the need to acquire your services. Your employer must submit the required documentation to CalSTRS substantiating your eligibility for an exemption.

CalSTRS must receive the exemption request and required documentation before you can begin working. Postretirement Earnings Limit In addition to the separation-from-service requirement, you’re also subject to the annual postretirement earnings limit if you return to work in a CalSTRS-covered position. If you return to work in a CalSTRS-covered position within the California public school system, after meeting the separation-from-service requirement, as an employee, an independent CalSTRS Ombudsman The Office of the Ombudsman was created by the California Legislature to receive complaints from our members and other entities regarding the actions of our employees. How can the Office of the Ombudsman help you? • We’ll provide information, answer questions or identify staff or resources to address your issues. • We’ll research CalSTRS policies and law that may assist you in resolving your problem. • We’ll address your concerns in a prompt and professional manner. To contact our ombudsman, go to CalSTRS.com/contact and select CalSTRS Ombudsman to send us a secure email. CalSTRS Your Retirement Guide 2016 19 . contractor or an employee of a third party, you can earn up to the annual postretirement earnings limit without affecting your benefit. If your earnings from CalSTRS-covered employment, including employer contributions to tax-sheltered annuities and other tax-favored products, exceed the annual earnings limit, CalSTRS will withhold all of your gross monthly retirement benefit until we collect your excess earnings in full, up to the amount of your annual retirement benefit, minus reductions due to the separation-from-service requirement. The earnings limit for the 2015–16 school year is $40,321. Any amount you earn in a CalSTRScovered position during the first 180 calendar days of retirement will also count against the annual postretirement earnings limit for the appropriate fiscal year. For example: If you return to CalSTRS-covered work in the 2015–16 school year after the first 180 calendar days following retirement and earn $50,000, you will have exceeded the annual earnings limit of $40,321. If your annual retirement benefit is $9,679 or more, then CalSTRS will withhold your monthly retirement benefits until we collect $9,679. Very Narrow Exemption There is one very narrow exemption to the postretirement earnings limit.

If you return to work as a trustee, fiscal adviser, fiscal expert, receiver or special trustee in a position appointed by the State Superintendent of Public Instruction, county superintendent of schools, State Board of Education or California Community Colleges Board of Governors to assist schools in financial or academic distress, you may be exempt from the earnings limit through June 30, 2017. You are not eligible for an exemption if you have received a retirement incentive in the previous six months. Your employer must submit the required documentation to CalSTRS substantiating your eligibility for the exemption. CalSTRS must receive an exemption request and required documentation before you can begin working.

It is up to you to contact your employer to verify that the required documentation has been submitted to CalSTRS. CalSTRS will inform you if you have been approved for the exemption. How the Separation–From–Service Requirement and Annual Postretirement Earnings Limit Work Together If you retired on June 30, 2015, with an annual benefit of $34,000 and returned to CalSTRS-covered work earning $26,000 in the first 180 calendar days following your retirement date, your benefit would be reduced dollar for dollar up to your retirement benefit amount payable during that same period, which was about $17,000. CalSTRS collects the excess earnings by withholding all of your gross monthly retirement benefit until the entire amount owed is collected in full. If you continued to work in a CalSTRS-covered position for the remainder of the school year and earned an additional $26,000, your total earnings for the year of $52,000 would exceed the 2015–16 annual postretirement earnings limit of $40,321 by $11,679.

CalSTRS will collect these excess earnings from you up to the amount of your annual retirement benefit of $34,000 minus the previous $17,000 reduction due to the separation–from–service requirement limit, also known as the zero-dollar earnings limit. In this case, we would collect $11,679. 20 CalSTRS Your Retirement Guide 2016 . Exclusion From the Earnings Limit for Certain Third-Party Employers You may be excluded from the postretirement earnings limit and other postretirement employment requirements if: If you decide to remain retired after submitting your application, you may cancel your reinstatement application as long as we receive your request by the last day of the month in which your reinstatement was to become effective. •  return to work for a third-party employer You that does not participate in a California public pension system. •  activities performed are not normally The performed by employees of a CalSTRS employer and the activities are performed for 24 months or less. If you are re-retiring after reinstating to active service from retirement, your retirement date must be at least one day after the date you reinstated. Reinstatement After Retirement You may voluntarily terminate your retirement and reinstate to active membership any time after the date of your retirement by submitting the Reinstatement After Retirement form. Your reinstatement date can be any day during the month in which CalSTRS receives your signed Reinstatement After Retirement form. For example, if you want your retirement to end as of July 15, 2016, CalSTRS must receive your form no later than July 31, 2016. If you re-retire within 12 months of reinstating, you may not make changes to your retirement option or beneficiaries. If you re-retire after 12 months of reinstating, you may change or cancel your election, but your benefit may be subject to an assessment. Once you have retired, you may make a postretirement option change only under limited circumstances.

See the Member Handbook for more information on postretirement option changes. To learn how reinstatement could affect your future retirement benefits, meet with a benefits specialist. You’ll also find more information in the Member Handbook. Keep your mailing and email addresses current to avoid delays in benefits or communications. Submit changes using myCalSTRS or the Address Change Request form, available at CalSTRS.com/forms. CalSTRS Your Retirement Guide 2016 21 . Retired Educator Organizations Organizations for retirees provide services to their members and may be legislative advocates for bills affecting retired educators. Contact information for organizations is provided as a courtesy and not as an endorsement. Association of California School Administrators 1029 J Street, Suite 500 Sacramento, CA 95814 800-608-2272 acsa.org Faculty Association of California Community Colleges 1823 11th Street Sacramento, CA 95811 916-447-8555 faccc.org California Federation of Teachers Administrative Office 2550 North Hollywood Way, Suite 400 Burbank, CA 91505 818-843-8226 cft.org United Educators of San Francisco—Retired Division 2310 Mason Street San Francisco, CA 94133 415-956-8373 uesf.org California Retired Teachers Association 800 Howe Avenue, Suite 370 Sacramento, CA 95825 916-923-2200 800-523-2782 calrta.org United Teachers Los Angeles–Retired 3303 Wilshire Boulevard, 10th Floor Los Angeles, CA 90010 213-487-5560 800-556-8852 utla.net California Teachers Association/National Education Association–Retired Gary Fong 1705 Murchison Drive P.O. Box 921 Burlingame, CA 94011-0921 650-552-5204 gfong@cta.org Benefit of a Lifetime 22 CalSTRS Your Retirement Guide 2016 . CalSTRS Benefits Planning Offices Office Locations Telephone Numbers Hours Auburn 530-886-2012 M–F 8–5 Bakersfield 661-636-4880 M–F 8–5 Eureka 800-228-5453, ext. 3 M–F 8–4:30 Fresno *Visalia 559-497-3797 M–F 8–4:30 Glendale Member Service Center *Culver City, Lancaster, Oxnard, Walnut 800-228-5453, ext. 3 M–F 8–5 Irvine Member Service Center *Downey, Santa Fe Springs 800-228-5453, ext. 3 M–F 8–5 Riverside Member Service Center 800-228-5453, ext.

3 M–F 8–5 619-718-6783 M–F 8–5 800-228-5453, ext. 3 M–F 8–5 Santa Cruz *Salinas 831-466-5755 M–F 8–5 Santa Maria *Santa Barbara 805-928-0542 M–F 8:30–5 Santa Rosa 800-228-5453, ext. 3 M–F 8–5 West Sacramento Member Service Center *Elk Grove, Fairfield, Modesto, Oroville, Redding 800-228-5453, ext.

3 M–F 8–5 San Diego *San Marcos Santa Clara Member Service Center * Pleasant Hill, San Francisco *Hours and services vary at satellite offices. Appointments are scheduled through the corresponding CalSTRS office. All member service centers accept CalSTRS applications and forms. Contact satellite offices directly to find out if they accept forms.

For a current listing of offices, visit CalSTRS.com/localoffices. CalSTRS Your Retirement Guide 2016 23 . Forms for Service Retirement To apply for service retirement, you’ll need to submit the Service Retirement Application. You and your employer must submit the Express Benefit Report to verify your last day of work, vacation or compensated approved leave and report unused sick leave. You also may need to submit additional forms for special circumstances. Here is a list of forms and descriptions of their purpose. Except for the Express Benefit Report and the Service Retirement Application Change Request form, you can complete and submit these forms online using myCalSTRS (the direct deposit authorization on myCalSTRS is not a form). Form Name Purpose Why Use This Form Required o Service Retirement Application To apply for retirement as a Defined Benefit member. Required for a Defined Benefit retirement.

Includes distribution for your Defined Benefit Supplement funds. o Express Benefit Report To have your employer verify your last day of work, vacation or compensated approved leave and report unused compensated sick leave. Required for verification of employment termination and unused sick leave to adjust your benefit. o Direct Deposit Authorization To send your retirement benefit directly to your financial institution. Provides a convenient and safe way to receive your retirement benefit. o Recipient Designation To designate living persons, an estate, trust, charity or other entity to receive the one-time death benefit. Confirms your death benefit wishes are recorded at CalSTRS and avoids probate for this benefit after your death. To explain why your spouse’s or registered domestic partner’s signature is not on forms that require it. If you are married or registered as a domestic partner and your spouse or registered domestic partner is unable or refuses to sign forms when required. To designate one or more option beneficiaries—must be living persons—to receive an allocation of your Member-Only benefit with an option choice for each and, if you choose, retain a portion of your benefit. When you want to elect the Compound Option at retirement and are submitting a Service Retirement Application for the first time. o Reduced Benefit Election To elect the Reduced Benefit Election—you must be at least 55 but under 60. Receive one-half of your monthly benefit calculated as if you were 60 for the same number of months after age 60 that you received payments before 60. After that, you receive your normal benefit. Must be submitted with your Service Retirement Application. o Service Retirement Application Change Request To make a change to your application or cancel it. CalSTRS must receive your form within 30 days of the date your first benefit payment is issued. Recommended Special Circumstances o  ustification for Non-Signature J of Spouse or Registered Domestic Partner o Compound Option Election ( This is the only option election that requires a different form.) Find current forms on myCalSTRS or at CalSTRS.com/forms. 24 CalSTRS Your Retirement Guide 2016 .

Step 2: Complete and Submit Your Forms Online Complete and submit your Service Retirement Application online using myCalSTRS. It’s easy, fast and secure. When you complete your application online using myCalSTRS: »»  ou’ll receive step-by-step guidance to complete your application correctly. Y »»  our member-specific information is auto-filled, saving you time. Y »»  our application is processed automatically, for a faster turnaround. Y »»  ou’ll receive immediate email confirmation when CalSTRS receives your Y application and after it has been processed. »»  ou’ll receive prompt emails if we need additional information to process Y your application. Activate Your myCalSTRS Account Defined Benefit Supplement Rollovers Get started now by activating your myCalSTRS account if you haven’t already done so. If you have a spouse or registered domestic partner, he or she also needs to register for myCalSTRS to electronically sign your application. If your spouse or registered domestic partner doesn’t already have a myCalSTRS account, he or she will be prompted to create one once you complete your application. Rolling over your Defined Benefit Supplement funds? If you select CalSTRS Pension2 for your rollover, you can submit your application online since CalSTRS will obtain the required financial signatures on your behalf. To begin, simply go to myCalSTRS.com, and click on Register Now. If you need help, call us at 800-228-5453. If you’re rolling over your Defined Benefit Supplement funds to a financial institution other than Pension2, a financial institution representative’s signature is required.

You can still complete your application online, but you’ll need to print and submit it to CalSTRS. CalSTRS Your Retirement Guide 2016 25 . Instructions Overview for Paper Forms Carefully read and follow the instructions for each form to avoid any processing delays. All the forms you may need to retire are listed on page 24. You can find them online at myCalSTRS and CalSTRS.com/forms. Paper forms can be mailed, faxed or returned to certain local offices.

All paper applications are processed in the order they are received. Incomplete applications are not processed and are returned by mail. When completing the paper retirement application and other forms, be sure to: »» Carefully read the instructions. »» ake photocopies of the forms M  beforehand in case you need to start over. You can also download and print new forms from CalSTRS.com/forms.

If you need to make a correction, draw a line through the error and make your correction, then initial and date next to the change, or use a new form. »» rint clearly in blue or black ink P  or type all information requested. Do not use pencil, erasable ink or light-colored ink. 26 CalSTRS Your Retirement Guide 2016 »» emember to sign and date your R  Service Retirement Application and other forms. For forms to be legally accepted by CalSTRS, you and your spouse or registered domestic partner must sign and date all forms where indicated. If your spouse or registered domestic partner cannot sign the forms, complete the Justification for Non-Signature of Spouse or Registered Domestic Partner form.

This form may require supporting documentation. »» ake a copy of each completed M  form you submit to CalSTRS for your records. . Service Retirement Application Checklist This checklist will help you avoid common errors that result in your paper application being returned for corrections. Section 1: Member Information Did you complete all of the member information? Section 2: Retirement Information Did you provide a retirement date? Did you provide the date of your last day of work, vacation or compensated approved leave? Is your retirement date at least one day after your last day of work, vacation or compensated approved leave? f you are applying for the Reduced Benefit Election, did you complete and attach the I Reduced Benefit Election form? f you plan to retire concurrently from another California public retirement system, did you I complete the required information? Section 3: Your Defined Benefit Election 3.1 Defined Benefit Election Did you elect either the Member-Only or the Modified Benefit?  you elected the Modified Benefit and did not previously submit a Preretirement Election of If an Option form: Did you provide all the required option and beneficiary information? Did you enclose birth date verification for your option beneficiary? If you are applying for the Compound Option Election, did you complete and attach the Compound Option Election form? 3.2 Defined Benefit Tax Withholding Preferences Did you elect your California state and federal income tax withholding preferences? Section 4: Your Defined Benefit Supplement Election 4.1 Defined Benefit Supplement Election  id D you elect one choice for your Defined Benefit Supplement funds: either Lump-Sum Payment, Annuity Payment, or Combination Lump Sum and Annuity?  you elected the Annuity Payment, did you indicate either the Period-Certain Monthly Annuity If of 3 to 10 Years or the Lifetime Monthly Annuity? I f you elected the Combination Lump Sum and Annuity, did you indicate the Lump-Sum amount and choose either a Period-Certain Monthly Annuity of 3 to 10 years or a Lifetime Monthly Annuity? CalSTRS Your Retirement Guide 2016 27 . Service Retirement Application Checklist 4.2 Defined Benefit Supplement Payment Instructions If you chose the Lump-Sum Payment or a Period-Certain Annuity of 3 to 9 years, did you elect either Direct Payment or Rollover? If you chose Rollover, did you: Choose one of the three plan types: Traditional or SEP IRA, other eligible plan or Roth account? Indicate the dollar amount or percentage to transfer? Provide the account number? Complete the financial institution information? Obtain the financial institution representative’s signature if the rollover is not to  CalSTRS Pension2? 4.3 Defined Benefit Supplement Tax Withholding Preferences you elected the Direct Payment Lump Sum or a Period-Certain Annuity of 3 to 9 years, did you If indicate if you want state tax withheld? you If elected a Lifetime Monthly Annuity or the Period-Certain Annuity of 10 years, did you choose your state and federal income tax withholding preferences? Section 5: Required Signatures Did you indicate your marital status by checking all boxes that apply to you? Did you sign and date the form with your signature date? Did you sign within six months of your requested retirement date if requesting a retirement date in the future? Did your spouse or registered domestic partner sign and date the form with the signature date?  not, did you check the corresponding box and attach the Justification for Non-Signature of Spouse If or Registered Domestic Partner form? Section 6: Special Tax Notice: Your Rollover Options Did you read and consider this notice when making decisions on rollover-eligible payments? Before submitting your application: Are your name and Client ID or Social Security number on all pages? Did you complete all pages of the application? Did you initial and date any corrections? Did you make a copy of your application and supporting documents for your records? 28 CalSTRS Your Retirement Guide 2016 . Step 3: CalSTRS’ Role in Your Retirement Process The information below will help you understand what to expect after you submit your Service Retirement Application. If you submit your paper application between April 1 and July 31, processing times may be longer than during nonpeak months. Submit your application using myCalSTRS for faster processing. When you complete and submit your application online using myCalSTRS, your timeline typically will be much faster. After you submit your Service Retirement Application, CalSTRS… When Reviews your packet for all necessary information. Within 30 days of receiving your application packet. Sends a letter to you, acknowledging receipt of your application. Within two weeks of processing your application or instantly via email if you apply online. May request additional information from you or your former employer, including any court-ordered community property documents. (The Express Benefit Report form can decrease the need to request additional information from you or your employer.) Any time during the application process. Sends an award letter that includes: • The amount of your monthly benefit. • How your monthly benefit was calculated. • Within 45 days of your retirement date, or the date we process your application, whichever is later. The total amount of your contributions and interest as of your effective date of retirement. Sends your first benefit payment based on the information on file at the time of retirement.

If your retirement date is not the first of the month, your first benefit payment will be prorated. Within 45 days of your retirement date or the date we process your retirement application and all applicable forms, whichever is later. Sends your requested Defined Benefit Supplement payment based on the information on file at the time of your retirement. Within 45 days of your retirement date or the date we process your retirement application and all applicable forms, whichever is later. Sends adjustment letters. • Your benefit payment may be adjusted for up to six months as we receive additional information from your employer, including any unused sick leave or retirement incentive. • Unused sick leave may take up to six months to process after we receive the Express Benefit Report from your employer or employers. • Reconciliation of underpayments or overpayments will be made during this period. • After your retirement date. Save your most recent adjustment letter to determine your tax liability. Provides an annual benefit adjustment equal to 2 percent of your initial benefit. These adjustments are not compounded or based on inflation. Effective September 1 of each year, beginning after the first anniversary of your retirement. The automatic adjustment is reflected in your October 1 payment. CalSTRS Your Retirement Guide 2016 29 .

CalSTRS Pension2—Designed With You In Mind Roll Over Your Defined Benefit Supplement Funds to Pension2 at Retirement You may be thinking about what to do with the money in your Defined Benefit Supplement account. Consider a rollover to Pension2, CalSTRS’ voluntary supplemental savings plan. Pension2 offers 403(b), 457(b) and Roth 403(b) plans with low fees and flexible investments. CalSTRS Pension2 provides much more than a home for your retirement assets: Bring It All Together ● Designed Have money in a 403(b) or 457(b) account administered by another company and don’t like the higher fees and expenses? You may be able to roll over your money to Pension2. By rolling over money in other qualified plans to Pension2, you’ll be able to manage your retirement savings in one place and benefit from low fees and flexible investment options. ● Low Find out how your other accounts compare to Pension2. To get a no-cost, no-obligation comparison of the fees, call toll free 888-426-2684. Pension2.com Find links to the Pension2 e-book, educational videos and online enrollment.

Or call toll free 844-electP2 (844-353-2872). 403bCompare.com Compare fees charged by 403(b) plans in California. Scan here to learn more about Pension2. with your interests in mind­ your Pension2 — account comes with low-cost investment choices selected by CalSTRS, professional advice and planning tools, plus other support to help you reap the rewards of financial security in retirement. fees keep more of your hard-earned savings working for you­—you’ll belong to a plan with simple, low-cost and transparent fees. There are no commissions or surrender charges. As a large plan, Pension2 can negotiate competitive institutional pricing. ● Investments for everyone­—Pension2 offers choices to match every type of investor.

Easy Choice Portfolios provide ready-made diversified portfolios that simplify your investment decisions, including three targeted portfolios for retired members. You can also build your own portfolio or, if you’re an experienced investor, choose from hundreds of mutual funds through the Self-Directed Brokerage Account. and a team to help you succeed­—you can manage your account 24/7 online or use the automated toll-free phone line. Online tools can help you plan and make decisions.

Experienced retirement specialists can help you define and pursue goals in retirement. ● Services . Glossary Age Factor Concurrent Retirement The percentage of your final compensation that you will receive as a retirement benefit for every year of service credit. The age factor is based on your age on the last day of the month in which your retirement is effective. For CalSTRS 2% at 60 members, the basic age factor at age 60, the normal retirement age, is 2 percent. The maximum age factor is 2.4 percent at age 63. Retiring for service at the same time from CalSTRS and one of the following California public retirement systems: California Public Employees’ Retirement System, San Francisco Employees’ Retirement System, University of California Retirement System, Legislators’ Retirement System, or those systems established under the County Employees’ Retirement Law of 1937.

Or retiring for service on different dates as long as you did not perform service creditable to either system between those dates. For example, if you retire at age 60 and have 20 years of service, you will receive 2 percent (your age factor at age 60) of your final compensation multiplied by the 20 years you worked, or 40 percent of your final compensation (2 percent x 20). Annual Benefit Adjustment An automatic annual increase to your monthly benefit. The increase is effective September 1 of each year after the first anniversary of your benefit effective date and appears on your October 1 payment. Annual benefit adjustments are calculated at 2 percent of your initial benefit.

The increase is not compounded or linked to inflation. Assessment A reduction applied to your benefit if you change or cancel your preretirement election of an option. The amount is the actuarial equivalent of the coverage you received as a result of the preretirement election. (Assessments of $0 do not result in a benefit reduction.) Career Factor If you retire with at least 30 years of qualified service credit, a bonus of 0.2 percent will be added to your age factor up to a maximum age factor of 2.4 percent.

For example, at age 60 and 3 months, the normal age factor is 2.033. With the career factor added, the age factor would be 2.233. The increased age factor does not apply if you die before retirement without a Preretirement Election of an Option form on file at CalSTRS. Client ID A CalSTRS randomly generated number used to identify members.

CalSTRS uses it instead of your Social Security number to secure your identity. Your Client ID can be found on your Retirement Progress Report. Creditable Service Specific employment activities performed for a school district, community college district, county office of education or eligible charter school, including teaching, mentoring, vocational or guidance counseling services related to school curriculum, and a variety of administrative duties. Credited Service Service credit for which required contributions have been paid. Defined Benefit Program A benefit program within the State Teachers’ Retirement Plan that provides a lifetime retirement benefit (based on a formula using an age factor, service credit and final compensation) and survivor and disability benefits for California’s public school educators who are members of the program. Defined Benefit Supplement Program A supplemental benefit program with benefits based on contributions and interest credited to your account. Contributions from earnings for service performed in excess of one year, special limited-term payments or retirement incentives go into your Defined Benefit Supplement account. From January 1, 2001, to December 31, 2010, funds also came from 25 percent of your monthly CalSTRS contribution. Excess Sick Leave Days Sick leave granted by employers after June 30, 1986, that exceeds one day of sick leave per pay period of at least four weeks. Compensation Earnable Your annual compensation earnable for a school year is based on the gross monthly pay you could have earned for creditable service performed full time—or the full-time equivalent for part-time employees. CalSTRS Your Retirement Guide 2016 31 .

Final Compensation The highest average annual compensation earnable during a specified period of CalSTRS-covered paid employment. The period is 12 consecutive months if you have at least 25 years of service credit. The period is 36 consecutive months if you have fewer than 25 years of service credit. Hybrid Plan As a CalSTRS member, you participate in a hybrid retirement system that includes traditional defined benefit (Defined Benefit Program), cash balance (Defined Benefit Supplement Program) and voluntary defined contribution (CalSTRS Pension2) plans. You also have survivor and disability benefits. Longevity Bonus An increase to your monthly Member-Only Benefit, if you had at least 30 years of qualified service credit on or before December 31, 2010.

The bonus will be reduced by the option factor if you choose an option. Member You are a member if you have been credited with service in the Defined Benefit Program and have not received a refund for that service. Member-Only Benefit The highest monthly benefit you can receive when you retire for service or disability before any reduction to provide for an option beneficiary. Modified Benefit A reduction in your Member-Only Benefit to provide an ongoing lifetime benefit to one or more option beneficiaries after your death. The reduction depends on which option you choose, your age and the age of your option beneficiary when the election is made. One-Time Death Benefit A one-time benefit paid to your designated recipients (may be persons, an estate, trust, charity, corporation or other entity) after you die. Option Plan feature that allows you to distribute your retirement benefit over your lifetime and the lifetimes of other people. Postretirement Earnings Limits Separation-From-Service Requirement If you return to CalSTRS-covered employment during the first 180 calendar days after your most recent retirement date, your retirement benefit will be reduced dollar for dollar by 32 CalSTRS Your Retirement Guide 2016 the amount you earn up to your benefit payable during the 180 calendar days. There are no exemptions if you are under normal retirement age or received a retirement incentive. Following the 180-calendar day period, you may return to work under the annual postretirement earnings limit. If you do not have a separation from service, you’ll be subject to the annual earnings limit and the separation-from-service requirement.

Any amount you earn in a CalSTRS-covered position during the first 180 calendar days of retirement will also count against the annual postretirement earnings limit for the appropriate fiscal year. Annual Earnings Limit If you return to work in a CalSTRS-covered position, after the 180-day separation period, including one for a third-party employer on behalf of a California public school, you can earn up to the annual postretirement earnings limit without affecting your benefit. Your CalSTRS benefit will be reduced dollar for dollar by the amount of creditable earnings in excess of the earnings limit up to your annual retirement benefit, minus reductions due to the separation-from-service requirement. The Teachers’ Retirement Board adjusts the earnings limit annually. The earnings limit for the 2015–16 school year is $40,321. If you return to CalSTRS-covered employment during the first 180 calendar days after retirement when you are subject to the separation-from-service requirement, any pay you earn will also count against the annual postretirement earnings limit for the appropriate fiscal year. Reduced Benefit Election A retirement alternative for Defined Benefit members.

You will receive one-half the monthly benefit amount calculated as if you were age 60. The reduced benefit will continue for the same number of months after age 60 that you received benefits before age 60. After that, you will receive the full retirement benefit.

To be eligible, you must be at least age 55, but under age 60, and have at least five years of service credit for retirement. You are not eligible if you previously received a CalSTRS service retirement or disability benefit or if you’re applying for service retirement while your disability application is being evaluated. Service Credit Accumulated period in years, including partial years, for which you earned creditable compensation and made contributions under the CalSTRS Defined Benefit Program. Your service credit is one of the factors used to determine your eligibility for benefits payable under the Defined Benefit Program.

Service credit cannot exceed 1.00 in any given school year. . . CalSTRS Resources WEB CALL WRITE VISIT FAX CalSTRS.com Click Contact Us to email 800-228-5453 7 a.m. to 6 p.m. Monday through Friday CalSTRS P.O. Box 15275 Sacramento, CA 95851-0275 Member Services 100 Waterfront Place West Sacramento, CA 95605 916-414-5040 myCalSTRS.com 403bCompare.com Pension2.com STAY CONNECTED 916-414-1099 Calls from outside the U.S. 888-394-2060 CalSTRS Pension2® Personal Wealth Plan Find your nearest CalSTRS office at CalSTRS.com/localoffices 855-844-2468 (toll free) Pension Abuse Reporting Hotline California State Teachers’ Retirement System COM 0377 (rev 1/16) Printed on recycled paper .