Buying Back or Redeposit Years of Service

What is a redeposit?

A redeposit is the purchase of all or a portion of the service credit you lost when you took a refund of your CalSTRS account. When you redeposit, you are buying back the service credit represented by the refund.

Who can make a redeposit?

You can redeposit your funds if you return to CalSTRS membership or are a member of certain other California public retirement systems.

What if I do not remember the date(s) of my refund(s)?

Since this is an estimate, to the best of your knowledge enter the month and year of the refund. If you do not know the day of the refund, use the first of the month for the calculation.

Can I redeposit funds if my former spouse received a refund of my retirement account as part of a community property settlement?

Yes, and the process for this type of redeposit would be the same. The cost would be based on the total refund your former spouse received at the time of his or her refund.

Can I buy service credit, including redeposit, after I am retired?

No, you must be an active member in CalSTRS to buy any type of service credit.

Can I make a partial redeposit?

Yes, you can buy a portion of the service credit represented by the refund you received.

What if I received more than one refund, can I redeposit multiple refunds?

Yes. You can redeposit all or a portion of all your refunds. To redeposit a portion of multiple refunds, CalSTRS adds each refunded amount together to arrive at a total cost. You can then redeposit a portion of that total cost.

What if I received more than one refund, can I redeposit multiple refunds?

Yes. You can redeposit all or a portion of all your refunds. To redeposit a portion of multiple refunds, CalSTRS adds each refunded amount together to arrive at a total cost. You can then redeposit a portion of that total cost.

What is the cost to redeposit?

You will have to pay the amount of the original refund (or a portion for a partial redeposit) plus the interest that the refunded amount would have earned had the funds remained in your CalSTRS account.

Why must I pay interest?

Interest is added to reimburse the system for lost revenue, interest and investments. It covers the full cost of the benefit in today's dollars.

 How is interest applied?

CalSTRS calculates compounded regular interest on your refund starting from the date of your original refund and ending 20 days after the receipt of your request by CalSTRS.

How is interest applied for multiple refunds?

CalSTRS calculates compounded regular interest from the date of each refund until twenty days after the receipt of your request. The total cost for the redeposit is determined by adding each refunded cost together for one total redeposit cost.

Will the additional service credit I receive qualify me for benefit enhancements such as the longevity bonus, highest final compensation and enhanced age factor?

Yes, service credit from a redeposit will qualify you for all CalSTRS benefit enhancements.

How can I start the process to redeposit?

If you would like to redeposit, use the CalSTRS form called Redeposit or Purchase of Permissive or Nonqualified Service Credit. After you send the completed form to CalSTRS, and CalSTRS verifies your eligibility for the redeposit, you will receive a billing statement reflecting the total service credit and amount due. Please do not send money to CalSTRS until you have received a billing statement. Any payments received by CalSTRS without an official billing will be returned to the sender.

Can I pay for my redeposit by making a lump-sum payment?

Yes. Your billing statement will give you instructions about how to make a lump-sum payment. Payment must be received within 35 days of the original invoice to avoid additional interest.

Can I pay for my redeposit through a rollover?

Yes, CalSTRS can accept rollovers from most qualified retirement plans. CalSTRS cannot accept rollovers from Roth IRAs, SEP, SIMPLE, or Coverdell Education Savings Accounts, and CalSTRS cannot accept rollovers of post-tax funds. Information and instructions for rollovers will be on the back of your billing statement.

Can I make monthly payments on a redeposit?

Yes, Current law allows you to make monthly payments over a maximum ten-year plan. Your billing statement will reflect a five-year payment option. However, if you prefer a different payment plan (not to exceed ten years), you may request it on your billing statement. Service credit will post to your account when full payment has been received.

You can choose to make your monthly payments by cash or, if your employer offers it, by payroll deduction. If you are thinking about a payroll deduction, you should check with your employer for information about the type of payroll deduction they offer.

Your billing statement will include instructions about how to initiate monthly payments, either by cash or payroll deduction.

 Can I continue to make payments for a redeposit after I retire?

No, you cannot continue installment payments after you retire or start to receive a disability retirement allowance. If you are making payments and will retire, you must make your final payment no later than the end of the month of your retirement. The final amount can be paid as a lump sum. If you have not finished your payments by the time you retire, you can receive prorated service credit for the total amount received at retirement.

Buy Additional Service Credits

Does purchasing "air time" count towards the bonus?
No. Only qualified service credit purchases count towards qualifying for the longevity bonus.

To apply to buy back service credit click the link below:

http://www.calstrs.com/Help/forms_publications/Forms/MS0287.pdf