STRS  and Pers retirement formulas

DUAL RETIREMENT

What if I have also worked under CalPERS? You will have to file for retirement separately with each system. For certain other systems, if you retire from CalSTRS and CalPERS on the same day, your benefits could be based on the highest compensation earned under either system. If you retire on different dates, CalSTRS may still use the highest compensation, as long as you do not work under CalSTRS between the different retirement dates.

The highest compensation you earned under CalSTRS-covered employment will be used for calculating your CalSTRS retirement benefit if you work under CalSTRS-covered employment and another public retirement system in the same pay period during the period of service used for calculating final compensation. Even if you earned a higher salary under the other retirement system, if you are still working in CalSTRS-covered employment during your final compensation period, CalSTRS will use only your CalSTRS salary for purposes of final compensation.

• If you have less than 5 years of service credit – You are not a vested CalPERS member. If you decide to leave your contributions on deposit with CalPERS you will continue to earn interest at the current rate of 6% and your membership will continue. No additional service credit will be earned unless you again become employed by a CalPERS-covered employer or acquire reciprocal rights with another California public retirement system. Only if you become vested will you have the right to future retirement benefits. Exception: If you have a job-related disability and are a safety member you may qualify for Industrial Disability Retirement even if you have less than 5 years of service credit. Contact your employer or CalPERS for more information.

• If you have at least 5 years of service credit and are younger than age 50 – You are a vested CalPERS member. You may leave your contributions on deposit with CalPERS, earning interest at the current rate of 6%. Then, when you are age 50 (the minimum age to qualify for service retirement) you can apply for retirement and receive a monthly allowance based on the service credit earned before you separated from employment. You should use the retirement estimate calculator on our website at www.calpers.ca.gov to find out what your allowance would be at age 50. (If you are disabled, regardless of age, you may be eligible for disability retirement. Contact your employer or CalPERS for the disability retirement election/application package.)
  
  However, if you enter employment under CalSTRS the following will apply:

• Your CalPERS benefits will be computed using the highest final compensation (average salary) earned under either system. You must retire from both Systems on the same date and identify the other retirement system on your application.
   

• While you are in service as a member of CalSTRS, you may retire from CalPERS without meeting CalPERS minimum service credit requirement. However, you must attain CalPERS’ minimum age requirement before you can receive a benefit from our System. Also, you may not withdraw your CalPERS contributions while you are an active member of CalSTRS.