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DBS Account
What is the Defined
Benefit Supplement Program?
Assembly Bill 1509
(Chapter 74, Statutes of 2000) established the Defined Benefit
Supplement Program. This is an additional benefit for active CalSTRS
Defined Benefit Program members. It is designed to provide you with a
lump-sum cash or monthly annuity benefit in addition to your benefits
from the DB program at no extra cost to you. AB 1509 requires that 1/4
of your 8 percent CalSTRS contribution be allocated to your new account.
At retirement, disability, death or one year following termination of
CalSTRS-covered employment, the funds in your account will be available
to you or your beneficiary, whichever is applicable.
What is my contribution rate?
You have been
contributing 8 percent of creditable compensation earned to the CalSTRS
DB Program. AB 1509 redirects 1/4 of members' future 8 percent CalSTRS
contribution to their new DBS Program account.
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For example,
if your monthly compensation for CalSTRS-covered service is
$3,000, you contribute $240 per month to CalSTRS; $60 will be
allocated to your DBS Program account and $180 will be allocated
to your DB Program account.
How long will these
contributions be allocated to my DBS account?
Your DBS account was
established January 1, 2001. Contributions under AB 1509 to your DBS
Program account will terminate January 1, 2011, or upon termination of
CalSTRS-covered employment, whichever occurs first.
Where can I get more
information about the DBS Program?
To go to the Defined
Benefit Supplement Program Web page on the CalSTRS Web site click
here or call the CalSTRS Public Service Office at (800) 228-5453.
What happens to my DBS account when I
retire?
At retirement you will
elect how to receive your DBS funds. If you retire with a balance in
your DBS account of less than $3,500, you must take a lump-sum
distribution. If the balance in your DBS account is $3,500 or more, you
must choose one of the following:
• a lump-sum distribution
• an annuity
• combination of lump-sum distribution and annuity
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