Do I want to take
part of my retirement benefit as a partial lump sum?
If you are eligible when you retire, you can receive a portion of your
retirement benefit as
a lump sum in exchange for a lower lifetime monthly benefit. You can
have your Partial
Lump Sum paid to you or rolled over to a qualified plan, such as a
403(b) account or an IRA.
Carefully consider the implications if you are thinking about taking a
Partial Lump Sum.
It is extremely important to thoroughly evaluate your financial needs
because your
ongoing monthly benefit is permanently reduced when you take a Partial
Lump Sum.
Your decision cannot be changed after your retirement date.
Your maximum partial lump-sum
payment is the lesser of:
- 15 percent of the lifetime value
of your retirement benefit, or
- the portion of the lifetime value
of your benefit that is in excess of an amount equal to two percent
of your final compensation multiplied by your years of service
credit and divided by 12.
Before your retirement date, you can
use the Retirement Benefits Calculator at
www.CalSTRS.com to get an estimate
of the maximum partial lump-sum payment available to you, as well as
other amounts, and how each amount would affect your monthly benefit.
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